A defined set of customs and traditions characterise the Holy Month of Ramadan, whether related to the act of worship or pertaining to social commitments, including helping out the needy. But there are some unseemly practices that arise from excessive consumption that go way beyond the faithful’s essential needs. This can clearly be recorded from data coming in from several countries.

An estimated $5.5 billion is spent on food each month in the Gulf, which increases by one-and-a-half times to $13.7 billion during Ramadan. An increase of between 25-40 per cent may be rated as acceptable, because there are objective reasons that lead to this. For one, the Iftar projects carried out by mosques, charity associations and financially sound individuals/organisations are part of a tradition to demonstrate solidarity between members of the community.

On the other hand, the Gulf’s governments provide aid to needy families, which again is worthy of the highest appreciation. The various charity campaigns offer all types of food for free, and give an opportunity for community members to get together during evenings to reflect the spiritual atmosphere of Ramadan.

The increase in food consumption bills beyond this should be examined by retailers and consumers alike, since it does not reflect an increase brought on by actual need. Such lavish consumption cost families dearly and add more burden even to the wider economies because the governments are subsidising food to ensure availability of these commodities at affordable prices.

At the same time, an increase in consumption forces food prices to scale up during Ramadan, particularly for meat and vegetables. This is despite the considerable efforts by the various ministries in the GCC to monitor and control food prices.

Yet, the law of supply and demand has its own operating dynamics and which cannot always be controlled. This means that consumers, without realising it, themselves contribute to raising prices by buying extra quantities that far exceed their basic needs.

Consumption rates increase in relation to family incomes. According to data published in Qatar, the monthly expenditure on food in Qatar is estimated at $2,400 by a Qatari family compared to $525 on the part of an expatriate family. The four-fold and more increase clearly represents a gap that does not reflect the actual needs. The gap is not logical regardless of the number of family members.

As more than 80 of the key food requirements are imported, the inflated consumerism can easily throw family budgets out of kilter. Consequently, it leads to reducing savings on the part of individuals, and which could have its own bearing on the wider economy.

Therefore, a measure of control on consumption practices, especially during Ramadan, will create substantial returns, on both general budgets and those of families.

If we include other forms of consumption such as electricity and water, where usage rates are among the highest in the world, the economic returns that will accrue from better management of resources cannot be over-estimated.

This will, in large measure, give a substantial boost to the process of budget setting and measured improvements in living standards of consumers themselves.

— Dr Mohammad Al Asoomi is a UAE economic expert and specialist in economic and social development in the UAE and the GCC countries.