Daily Personal Finance Insights – Discounted deflation

Daily Personal Finance Insights – Discounted deflation
11 February 2013

Minimal deflation

The Dubai Statistics Center released their annual consumer price index indicating a deflation rate of 1.71% in 2012 compared to 2011. The CPI found an average price decrease in favour of consumers in the prices of commodities, such as: “housing, water, electricity, gas, and other fuels.” However, price increases were prevalent in: “Food, and non-alcoholic beverages, alcoholic beverages and tobacco, education, transport, furnishings, household equipment and routine household maintenance, miscellaneous goods and services, health, recreation and culture.”

DIFC Employment law changes – maternity leave

New employment laws for entities under the jurisdiction of DIFC have come into operation. The new laws are especially appropriate for female employees who are entitled to a minimum maternity leave of 65 working days, of which the first 33 working days will be at the employee's normal daily wage and the remaining 32 working days at 50% of the normal daily wage. This is slightly higher than the 45 days in the UAE state law. The DIFC employment law indicates paid maternity leave applies where an employee has been continuously employed with the same employer for at least 12 months preceding the expected or actual week of childbirth. 

Private school fees held in Dubai

Dubai Knowledge and Human Development Authority (KHDA), revealed there will be no increase in private school fees for the 2013-2014 academic year. The announcement relies upon the Education Cost Index calculated by Dubai Statistics Center (DSC) at minus 1 per cent (-1%).

Family discounts in Abu Dhabi

Abu Dhabi Chamber is preparing to release the new Dhabi Family Discount card. Holders will be able to obtain significant discounts on goods and services from participating suppliers. The initiative is aimed at helping consumers reduce the costs of supplies and services through group discounting.  

Investing – UAE Banks

Investors are moving into UAE bank stocks. The Dubai bank index is up 13.2% since the end of 2012, contributing to a 15.3% gain in the overall index; the Abu Dhabi bank index is up 11.4%, outperforming a 10.1% increase of the overall market. The increases are not necessarily due to the growth in profits, which have been very favourable at UAE banks, but more likely due to investors chasing dividends. ENBD has proposed a cash dividend of 25% for 2012, up from 20% for 2011, while ADCB has proposed a 25% cash dividend. The market rally may end now dividends are announced.

Comments

  • ConsumerWatch
    ConsumerWatch
    2013-02-11T12:39:55

    It looks like the banks are not the only one's to increase Dividends according to this article in Arabian Business. But then it is the same every year. Investors scramble to buy just before dividend announcements and then trade the shares soon after, so they can profit.

  • nima
    nima
    2013-02-11T13:23:39

    Is family card open to non UAE nationals. 

  • Colin
    Colin
    2013-02-11T13:44:19

    Good question - we will be watching this closely. So far the announcement is to generate early interest and specifics on who can apply are not announced - http://www.dcard.ae/

  • Mohannad
    Mohannad
    2013-02-11T23:26:41

    Yes Nima, they said that it is open for UAE nationals and residents (expats)...

  • Colin
    Colin
    2013-02-11T13:54:45

    The KHDA acknowledged that the school fees 'hold' announcment applies to private schools and only in Dubai. 

    Twitter.com/KHDA

      The School Fees Framework applies to private schools in Dubai only.

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Head of Behavioral Finance
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