Daily Personal Finance Insights – Prices going-up
UAE residents’ personal debt grows. Despite a worldwide trend of lower individual debts, personal loans in the UAE increased by 4%, to over 260 billion AED at the end of 2012, according to bank statistics released by the Central Bank.
Dubai – Banks, headed by Emirates Banks Association and property developers such as Emaar Properties, are looking to implement policies that will deter ‘flipping.’ Flipping happens when speculators put down a minimum deposit and quickly sell on the option, sometimes to multiple people. Reports indicate banks and developers will seek a minimum of between 30 and 50% deposit to ward off this perceived threat to property price stability.
Rental prices also showed a steep increase according to the same report, with apartments in Downtown Dubai 23% higher year on year and rent hikes averaging 17% across the city.
Prices of Basmati rice are set to grow, according to the Rice Association, largely due to the 2012 Indian harvest being 40% less than in 2011. The Rice Association is expecting global Basmati Rice prices to grow by up to 80%. The largest price increases are expected to be seen in the Middle East.
The UAE Government has adopted regulations aimed at reducing the price of more than 6,600 medicines by as much as 40%.
Global Islamic banking assets are forecast to exceed $1.8 trillion in 2013 up from $1.3 trillion in 2011 Ernst & Young said in its World Islamic Banking Competitiveness Report 2013. The Islamic banking industry in the UAE was ranked third with total assets of $75 billion.
As companies across the UAE announce record annual profits they also open the doors to recruitment. 60% of UAE businesses indicate they will be recruiting in 2013 and 8 of 10 financial executives are seeking new employees to fill finance-related posts this quarter.