UAE consumers can expect better prices on European goods as the weak euro enables retailers to import goods for less and pass on the savings.
The value of the euro has dropped nearly 20 per cent against the dollar over the past six months, largely because of sovereign debt worries with Greece and other euro-zone countries.
Keith Flanagan, the general manager of Al Ghurair Retail, a Dubai-based company that manages brands such as Springfields clothing, said: "You'll see retailers passing the savings on to the consumers, either in terms of lower initial prices or better discounts when they go on sale.
"They will also pass it on in terms of tangible benefits. You'll see a lot of shops being spruced up."
On January 1, the euro was worth US$1.43. By June 7, the currency hit a low of $1.19, a 17 per cent drop. It was trading at about $1.23 late yesterday.
But this has helped to boost retail margins, said Shuja Jashanmal, the chief executive of Beautybay, a chain of cosmetic stores under the Landmark Group, based in Dubai.
For the 10 per cent of its products it sources directly from European suppliers, Beautybay has seen its initial margins rise by between 10 and 15 per cent. Now it is passing on savings and has lowered its prices, Mr Jashanmal said.
"I've actually dropped the prices, making the brand more competitive," he said. "I have actually seen a significant increase in the selling of the products."
It is a much-needed break after a difficult year for retailers in the UAE and globally.
As consumers cut back on unnecessary spending, retail sales have slowed, forcing shops to push harder to make sales.
"Almost every retailer is on sale three, four times a year. Competition is very tough," said Mr Jashanmal. "My competitors have also felt the pinch with the challenging economic situation and they are also doing a lot of discounting and promotions that they wouldn't have done two years ago."
But the weak euro also has drawbacks for retailers. European tourists are less likely to take holidays and shop in the Emirates if their currency does not buy as much as it once did.
"The weaker euro doesn't help in getting a lot of tourists," said Nilesh Ved, the chairman of Apparel Group, which has brands including Aldo and Aeropostale. "Now it is more expensive to come to Dubai than go to European countries."
Tudor Allin-Khan, an economist at HC Brokerage, said last week that many travellers from Europe probably booked their vacations earlier in the year, so they would still come. Hotel rates had also been reduced, he said.
But they may shop less while in the country due to their diminished spending power, Mr Allin-Khan said.
Mr Flanagan said, however, that the positives outweighed the drawbacks.
"[It] is certainly going to ease inflation here, as people won't be forced to put prices up," he said. "It will also have the effect of rather than just breaking even, helping to give that little bit of profit that is needed to start investing in the business."
aligaya@thenational.ae
PREMIER LEAGUE FIXTURES
Saturday (UAE kick-off times)
Watford v Leicester City (3.30pm)
Brighton v Arsenal (6pm)
West Ham v Wolves (8.30pm)
Bournemouth v Crystal Palace (10.45pm)
Sunday
Newcastle United v Sheffield United (5pm)
Aston Villa v Chelsea (7.15pm)
Everton v Liverpool (10pm)
Monday
Manchester City v Burnley (11pm)
RoboCop%3A%20Rogue%20City
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If you go
Where to stay: Courtyard by Marriott Titusville Kennedy Space Centre has unparalleled views of the Indian River. Alligators can be spotted from hotel room balconies, as can several rocket launch sites. The hotel also boasts cool space-themed decor.
When to go: Florida is best experienced during the winter months, from November to May, before the humidity kicks in.
How to get there: Emirates currently flies from Dubai to Orlando five times a week.
UAE central contracts
Full time contracts
Rohan Mustafa, Ahmed Raza, Mohammed Usman, Chirag Suri, Mohammed Boota, Sultan Ahmed, Zahoor Khan, Junaid Siddique, Waheed Ahmed, Zawar Farid
Part time contracts
Aryan Lakra, Ansh Tandon, Karthik Meiyappan, Rahul Bhatia, Alishan Sharafu, CP Rizwaan, Basil Hameed, Matiullah, Fahad Nawaz, Sanchit Sharma
A timeline of the Historical Dictionary of the Arabic Language
- 2018: Formal work begins
- November 2021: First 17 volumes launched
- November 2022: Additional 19 volumes released
- October 2023: Another 31 volumes released
- November 2024: All 127 volumes completed
The specs
Engine: 2.7-litre 4-cylinder Turbomax
Power: 310hp
Torque: 583Nm
Transmission: 8-speed automatic
Price: From Dh192,500
On sale: Now
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The%20specs
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Director: Shady Ali
Cast: Boumi Fouad , Mohamed Tharout and Hisham Ismael
Rating: 3/5
Need to know
Unlike other mobile wallets and payment apps, a unique feature of eWallet is that there is no need to have a bank account, credit or debit card to do digital payments.
Customers only need a valid Emirates ID and a working UAE mobile number to register for eWallet account.
TO A LAND UNKNOWN
Director: Mahdi Fleifel
Starring: Mahmoud Bakri, Aram Sabbah, Mohammad Alsurafa
Rating: 4.5/5
The five pillars of Islam
1. Fasting
2. Prayer
3. Hajj
4. Shahada
5. Zakat
Libya's Gold
UN Panel of Experts found regime secretly sold a fifth of the country's gold reserves.
The panel’s 2017 report followed a trail to West Africa where large sums of cash and gold were hidden by Abdullah Al Senussi, Qaddafi’s former intelligence chief, in 2011.
Cases filled with cash that was said to amount to $560m in 100 dollar notes, that was kept by a group of Libyans in Ouagadougou, Burkina Faso.
A second stash was said to have been held in Accra, Ghana, inside boxes at the local offices of an international human rights organisation based in France.
Company%20Profile
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The specs
Engine: 6.2-litre supercharged V8
Power: 712hp at 6,100rpm
Torque: 881Nm at 4,800rpm
Transmission: 8-speed auto
Fuel consumption: 19.6 l/100km
Price: Dh380,000
On sale: now
Racecard
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Killing of Qassem Suleimani
What is double taxation?
- Americans living abroad file taxes with the Internal Revenue Service, which can cost hundreds of dollars to complete even though about 60 per cent do not owe taxes, according to the Taxpayer Advocate Service
- Those obligations apply to millions of Americans residing overseas – estimates range from 3.9 million to 5.5 million – including so-called "accidental Americans" who are unaware they hold dual citizenship
- The double taxation policy has been a contentious issue for decades, with many overseas Americans feeling that it punishes them for pursuing opportunities abroad
- Unlike most countries, the US follows a citizenship-based taxation system, meaning that Americans must file taxes annually, even if they do not earn any income in the US.
Our legal consultants
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
The specs
Engine: 77.4kW all-wheel-drive dual motor
Power: 320bhp
Torque: 605Nm
Transmission: Single-speed automatic
Price: From Dh219,000
On sale: Now
UPI facts
More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions
