Dubai
With less than two weeks until Ramadan, consumers are flocking to supermarkets and shopping centres to stock up on food and other items in preparation for the fast.
“They start [shopping] two weeks before Ramadan,” said Salah Al Halyan, managing director at Baizat, a financial consultancy.
And as Ramadan falls just before the festival of Eid Al Fitr, consumers spend the month shopping for clothes and gifts.
Retailers take advantage of the high consumption by offering discounts and deals, and opening until late hours. Restaurants offer special iftar and suhoor meals.
High demand from customers pushes up prices during Ramadan. However, the UAE government has announced that 200 commodities from over 200 outlets across the country must be discounted by up to 30 per cent. They include basics like rice, flour, meat and tea. However, Al Halyan warns consumers not to spend more than they can afford, even during Ramadan. In a usual month, consumers spend an average of between 16 and 17 per cent of their monthly income on food.
“Consumers should not spend more during Ramadan than in regular months, and not more than 20 per cent of their income. But some people go beyond that, up to 30 to 35 per cent,” he said.
Another reason for over-spending is a lack of preparation. “They don’t prepare a shopping list, so they end up buying things they don’t need. They also do last minute shopping,” said Al Halyan.
Al Halyan also advised people not to abuse their credit cards. “When using credit cards, people should not borrow more than they can afford to pay back. [Credit cards] push them to spend, [but] it is a dent in their budget,” he said.
