# Why is everything so expensive in Dubai



## woodlands

Hi,
I thought that Dubai was the mecca for shopping but it looks that from the staple food to luxury end, everything is more expensive even including london vat. crazy or i am missing something


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## Mr Rossi

woodlands said:


> Hi,
> I thought that Dubai was the mecca for shopping but it looks that from the staple food to luxury end, everything is more expensive even including london vat. crazy or i am missing something


No, you're not missing anything.

Shops here, including the biggest names, are franchised to Arabic owning companies and thus do not benefit from the global supply network of other international branches. 

Add in the logistics of importing to the desert and there is no sell through of stock - E-commerce doesn't exist to sell either current stock or discounted items through affiliated outlets. The one outlet mall is rubbish and doesn't really serve the purpose of an outlet mall.

Finally, Arabic ego and 'best price' mentality keeps alive the stone age trading practises of their ancestors.


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## titirangi

I'm with valentino, stuff is at least 20% higher priced. The only "cheap" stuff is the knock off handbags in K***** markets which always seems packed with brit ladies enjoying the "Dubai bargains". 

Dubai is marketed to the middle income segment (british and euro) as great for shopping - must be a real let down for them when they arrive.

Most of the stuff I buy here comes in on a plane via ebay and still cheaper than local dealers!


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## Elphaba

Not everything is expensive. Many fodstiffs are at excellent prices, but you have to buy local. Try a trip to Union Co-Op or Lulu for 
groceries.

The Shopping Festival starts shortly (albeit many sales are already on) which offers large discounts.

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## Nomad80

Do you think changing the name of Burj Dubai to Burj Khalifa on all the roadsigns happens for free? that the limited edition Bentleys and Lamborghinis that they drive, pay for themselves?

PISH POSH GUV'NOR, I SLAP YOU WITH A TROUT :boxing:


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## Shinjuku

woodlands said:


> Hi,
> I thought that Dubai was the mecca for shopping but it looks that from the staple food to luxury end, everything is more expensive even including london vat. crazy or i am missing something


Depends what you're looking for in your mecca.
For sheer numbers and variety of brands, retail names & flagship stores, Dubai is pretty hard to beat.

Its got most all of the mainstream american , european and asian brand names in this one city, which even some other major shopping capitals cannot claim to have.

This doesn't necessarily mean they come at a better price, but then again Dubai has never marketed itself as a bargain-type destination.


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## bdb

Dubai wasnt always like this. The first time I ever came out here was back in 1998 to visit my sis who has been living here for 15+ years. Back then things were 20-30% cheaper than back home in Germany, but now its 20-30% more expensive. Why? I guess they figured that people would buy even if they sell it a higher price. 

Also, I think its people from countries surrounding that really come to shop in Dubai. For instance, Iranians love to shop in Dubai because they have a larger variety of items, and they are usually cheaper than back home in Iran.....hopefully one day there will be a sensible regime in Iran which will get along just great with the US/Israel, and all these Arab countries in the PERSIAN Gulf will lose their strategic importance! Inshallah


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## zeez

online shopping, just double check the sizes


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## Anna returning

It's not just goods in shops. I touched on this in another thread. I've been experiencing this in 2 fields: venue hire, and printed media and internet advertising.
Where else in the world could someone tell you (and we're talking big organisation here) with a straight face that you can hire their facilities for 50% of your takings??
How can placing a run of paper ad cost *4 times* what it does in the UK? How can an internet site charge huge amounts of money for placing a logo you have supplied and copy you have supplied on a classifieds section? I could go on, but I won't.
It's greed, pure and simple. So many businesses here charge as much as they think they can get away with. It has nothing to do with selling at a fair mark up. I call it unethical 

Anna
StageAbility


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## Shinjuku

Anna returning said:


> It's greed, pure and simple. So many businesses here charge as much as they think they can get away with. It has nothing to do with selling at a fair mark up. I call it unethical
> Anna
> StageAbility


I call it capitalism.


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## titirangi

Shinjuku said:


> I call it capitalism.


Relatively closed market like this more a blend of Capitalism/Socialism. Try setting up a trading business here vs Hong Kong, better have some waasta!


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## Mr Rossi

Shinjuku said:


> I call it capitalism.


Capitalism can only work through viable, sustainable and regulated models and practises. None of which are remotely in existence here. 

When capitalism goes wrong, greed has taken over.


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## Nomad80

As far as I understand the word - capitalism implies competition

quite a few key sectors here are outright monopolies or sham duopolies with one arm being an eyewash and I don't wish to name names because the authorities here get butthurt about the truth


/That said *titirangi * one does not need waasta to open up a firm here, trading or otherwise. Being large scale competitive on the other hand is another matter entirely


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## Elphaba

I also didn't understand the comment about needing wasta to set up a company. I know plenty of people with companies who started them on their own and are doing perfectly well. You just need a lot of patience to deal with the red tape and a sound business plan/mind.

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## titirangi

Nomad80 said:


> As far as I understand the word - capitalism implies competition
> 
> quite a few key sectors here are outright monopolies or sham duopolies with one arm being an eyewash and I don't wish to name names because the authorities here get butthurt about the truth
> 
> 
> /That said *titirangi * one does not need waasta to open up a firm here, trading or otherwise. Being large scale competitive on the other hand is another matter entirely


yeah thats what i meant, small biz can be great, medium and large is a another story completely. MHO only, only been a year so you could say i'm talking out me arse! just what i picked up talking to western expats trying to take their small biz to the next level. you need a great local sponsor to open the doors or completely wasting your time. big deal are done over shisha in the majlis - kinda like back home spose except its normally in a pub somewhere.


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## pmac34

woodlands said:


> Hi,
> I thought that Dubai was the mecca for shopping but it looks that from the staple food to luxury end, everything is more expensive even including london vat. crazy or i am missing something


I guess it depends on what you are used to paying in your home country. I am currently living in Dublin Ireland and I have been comparing prices on recent visits to Dubai between both countries in preparation for moving my family there. I can honestly say that we will be better off in Dubai that Dublin (property rental prices excluded, which are crazy!!) I am lucky, this cost will be covered by my company.




Food prices are the same if not slightly cheaper. 
Clothing is the same. 
T.V's and electrical goods are approximately 20% less expensive in Dubai.
Furniture is much less expensive. 
Utility rates appear to be the same in Dubai from what people have told me they pay.
Cars are so much cheaper - as an example I drive a Honda CRV at home which cost 45,000 euro. I can get the same model here for 22,000 euro.
Petrol- say no more.
Eating out is around the same if not slightly less expensive.
Alcohol can be more expensive, however I have paid similar prices in hotels in Dubai to down town Dublin.
I cannot comment on other costs, however for day to day living, to me, it seems fine. It's all relative and like I said it depends on what you are used to. Ireland is an expensive country!

Anyway that's my take on things and we can't wait to set up our new life in Dubai


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## Anna returning

Shinjuku said:


> I call it capitalism.


 But can we not have ethical capitalism?? 



StageAbility


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## Dannysigma

OK some stuff is more expensive, but having moved here from London, the basics here are a lot cheaper: supermarket food, transport, utilities, rent (now). Booze and books are my only regular purchases that are more expensive - so I bought an eReader and I drink less


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## Elphaba

Dannysigma said:


> OK some stuff is more expensive, but having moved here from London, the basics here are a lot cheaper: supermarket food, transport, utilities, rent (now). Booze and books are my only regular purchases that are more expensive - so I bought an eReader and I drink less


Books are expensive, UNLESS you come along to the charity booksale on Friday 5th Feb and stock up on bargains. 

-


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## mrbig

I know all about greed... I'm American!


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## rsinner

Dannysigma said:


> ...so I bought an eReader ...


I am guessing you did not buy the ereader here (Sony?) ..... Do you just download stuff to your PC and transfer it to the eReader?
I have been wanting to buy one, but am tempted to wait for the Apple tablet which might have an eReader functionality too


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## Dannysigma

rsinner said:


> I am guessing you did not buy the ereader here (Sony?) ..... Do you just download stuff to your PC and transfer it to the eReader?
> I have been wanting to buy one, but am tempted to wait for the Apple tablet which might have an eReader functionality too


I bought the Sony one in the UK, though I noticed an advert for the new Sony touchscreen one in Magrudys the other day. I download stuff from either WH Smith bookstore or for free from gutenburg or truly-free.org. Of course, it is possible to get loads of stuff via torrents, but that would be illegal  There are also lots of people that sell books by author (usually 5-10 books per author) for a few pounds sterling each via ebay.

Don't know about the Apple tablet, but I'm extremely happy with the Sony.


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## Jynxgirl

The uk area just must be really really expensive... It is about relating to costs back home for each individual. This place is expensive to me.


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## Anna returning

Nomad80 said:


> As far as I understand the word - capitalism implies competition
> 
> quite a few key sectors here are outright monopolies or sham duopolies with one arm being an eyewash and I don't wish to name names because the authorities here get butthurt about the truth
> 
> 
> /That said *titirangi * one does not need waasta to open up a firm here, trading or otherwise. Being large scale competitive on the other hand is another matter entirely


In my brief experience, too many businesses here give poor service and charge the sky for it, because they've had the luxury of being virtually monopolies, so can get away with it. This also means they don't want and can't cope with competition. I have already experienced this .... someone trying to put me out of business before I've opened!! They've succeeded in setting me back several weeks. I say bring on the competition - 
it's what keeps capitalism healthy. Good service and fair prices will then win through :clap2:

StageAbility


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## Vmoses

^That is very true. It is also could be an expat thing - just like in the souks they will try and take you for as much as they can if you let them - but they won't pull that sort of trick on a local or someone else who's in the know.

As mentioned - the biggest thing is the lack of competition. And while the authorities may allow folks to open up small and medium sized entreprises freely - I do think you will run into difficulties if you try to take on the big boys. Can't imagine a low cost discounter like Walmart ever opening up shop in DXB.


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## |James|

Dubai was never this costly. In the 80's it was unbelievably cheap. That until the influx of Western expats (yeah! God's gift to mankind) that began to 'organize' this place (yes, a part of the Asian continent 'organized' to a western standard!), transforming (read corrupting) every form of traditional trade and business that existed in the land with their mad organizational skillz of the west into something purely satanic. They convinced the locals and the powers that be into believing that they could make fortunes twice as bigger than the Burj Khalifa by selling dreams, financed through loans and fueled by foreign investments specifically from the west. As time went by and the nationals saw their fortunes rise by selling sandy dreams thanks to the organized criminals brilliant plans to convert an underdeveloped nation into a developing nation and later to a developed nation, a saturation point was reached and it was necessary to invent a new product to continue raking in investment; 

Voila, the free zone concept was born

All of this "Organization" of trade and business only led to the increase of prices. Imagine buying an item at the mall and having to pay for all the counter staff, the assistants, the managers, the million assistants in addition to the logistics! (Needless to say that the item you bought was manufactured in the far east and probably costs a fraction of the amount you just paid)

And now while the westerners never fail to seize an opportunity to grab credit for the development of Dubai with their exceedingly big brains isn't it ironic that they sit back and wonder clueless as ever on 'Why is everything so expensive in Dubai?"

My 2 cents (hmm.... 7 fils!) worth!


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## M123

I try to stock up on things like Clothes and small electronics whenever I head back

I also signed up for this 'shop and ship' thing which I have yet to try but should yield some benefits.

As I think I've said before, compared with the UK, petrol, groceries, japanese cars and luxury watches are significantly cheaper.

Clothes, most electronics are considerably more expensive, and the sales even now seem to just about hit UK prices. Outlet mall also sucks compared to the outlet centres in the UK (e.g. Diesel Jeans can be as low as £60-£70 with plenty of choice in the UK outlets) whereas similar stuff here is 700AED plus. Clarks shoes which are 40 quid in the UK sell here at around 700 AED. My Nespresso machine (which I lugged over here lol) cost me 90 pounds (with extra cashback too making it cheaper) on sale from John Lewis, and here the exact same model is 1500 AED.

People earn more here and save on fuel, as well as being restricted on choice, drives prices up.


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## Elphaba

Exchange rates need to be factored in as well. When Sterling was stronger against the US Dollar, UAE prices seemed cheaper to many Brits, for example.

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## Anna returning

|James| said:


> Dubai was never this costly. In the 80's it was unbelievably cheap. That until the influx of Western expats (yeah! God's gift to mankind) that began to 'organize' this place (yes, a part of the Asian continent 'organized' to a western standard!), transforming (read corrupting) every form of traditional trade and business that existed in the land with their mad organizational skillz of the west into something purely satanic. They convinced the locals and the powers that be into believing that they could make fortunes twice as bigger than the Burj Khalifa by selling dreams, financed through loans and fueled by foreign investments specifically from the west. As time went by and the nationals saw their fortunes rise by selling sandy dreams thanks to the organized criminals brilliant plans to convert an underdeveloped nation into a developing nation and later to a developed nation, a saturation point was reached and it was necessary to invent a new product to continue raking in investment;
> 
> Voila, the free zone concept was born
> 
> All of this "Organization" of trade and business only led to the increase of prices. Imagine buying an item at the mall and having to pay for all the counter staff, the assistants, the managers, the million assistants in addition to the logistics! (Needless to say that the item you bought was manufactured in the far east and probably costs a fraction of the amount you just paid)
> 
> And now while the westerners never fail to seize an opportunity to grab credit for the development of Dubai with their exceedingly big brains isn't it ironic that they sit back and wonder clueless as ever on 'Why is everything so expensive in Dubai?"
> 
> My 2 cents (hmm.... 7 fils!) worth!


There's a lot of truth in what you say James. When I was here in the mid-90s, the things you'd expect to be more expensive were (ie imported goods) but services were cheap. Now I'm finding it odd what IS expensive (and this is in terms of setting up a business) I have been flabbergasted by:
1) What places think they can ask as a rental hire for a venue "50% of your takings, Ma'am" _said with a straight face!!_
2) Advertising in printed media - newspapers and magazines. How can an ad cost 3 to 4 times what it would cost in the UK?? 
And some websites too: How much time, effort and expertise does it take to copy a logo the client has sent you and copy the text they have sent you onto the website. Does it justify Dhs in the thousands?? I'd love to know how!

Those are the sort of areas where it seems to me sheer greed has taken over.
Having analysed prices here in my area of business, I've opted to charge exactly what I charged in the UK and pay my staff exactly what I paid in the UK. SO many people have said "You could get away with charging a lot more". Well, I probably could, but I wouldn't feel good about myself. The "get away with" bit doesn't sit well with who I am.
I'm clearly not cut out to be a business tycoon 

StageAbility


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## Jynxgirl

Anna.. something tells me you are not going to be very well liked by your competition LOL


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## lo0py_loz

You earn more here.....but yes things are most expensive....It's all relative. You can't get ginger or garlic cheaper than the UK!


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## lo0py_loz

It's all relative....you earn more in Dubai though than you would in many other places.
Cheap gems to buy in Dubai are....garlic and ginger....150% cheaper than the UK!


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## woodlands

lo0py_loz said:


> It's all relative....you earn more in Dubai though than you would in many other places.
> Cheap gems to buy in Dubai are....garlic and ginger....150% cheaper than the UK!


Well, considering that UK is a country with bankrupt banks and a bankrupt govt i can understand if the "oh its so cheap" attitude appears so easy for you to understand and not for myself. 

I must say i am just flabbergasted by the prices. I can understand that a few merchant families who did not understand that the growth in their country was financed by debt and let it go to their head would start charging up on prices. What i fail to understand is that now when they see that the Sheikh himself is ahmm...let's leave that...they could be more sensible apropos pricing. 
There will be a metro but half of it won't run, there will be apartments of which 35% would be vacant. But you would still want to charge Manhattan level prices for apartments and more so for services. Seems a recipe for disaster.

This place is so royally screwed up...no puns intended.


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## |James|

you could always leave, you know and go back (instead of being flabbergasted)


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