UAE Housing Cost Goes Up

Abu Dhabi--House rents and related services in the UAE surged by 17.5 percent in 2007 as the Gulf country recorded one of its worst inflation rates, according to official figures. Rents jumped by 18.8 per cent while most other associated items and services, including furniture and housemaids, became much costlier except the heavily subsidised water and power supply, which either stabilised or declined.

Figures by the Ministry of Economy showed that 2007 was one of the best years for the UAE in terms of economic growth and revenues. But it was one of its worst years in terms of inflation, which soared by nearly 11 per cent. The UAE has cited a surge in food prices and rents as the main reasons of inflation along with a higher import bill because of the decline in the US dollar.

While higher food prices was caused by a surge in global farm costs, strong demand triggered by the economic boom allied with soaring fuel and construction costs to push up rents and other housing services.

According to the Ministry of Economy, house rent and related items surged by 17.5 per cent in 2007, far higher than the 12.5 per cent growth in 2006. Rents alone leaped by 18.8 per cent while the prices of furniture and associated services swelled by nearly 13 percent in 2007.

Water and electricity prices were almost the only exception as water rates remained flat because of heavy government subsidies on water supply for domestic use. Electricity rates declined by around 5.5 percent. But butane gas and kerosene prices rocketed by nearly 16 percent while charcoal shot up by 21.2 percent , the figures showed.

Furniture costs surged by 16.2 percent and carpets and covers by around 10.7 percent. Sheets, towels and curtains prices also swelled by 13.4 per cent. The figures showed that while refrigerators were cheaper in 2007, washing machines became costlier, leaping by around 14.9 percent. Gas cookers prices rose by nearly 3.6 per cent and other household by 4.4 percent.

In a previous report, the ministry estimated inflation in the UAE at 11.1 percent in 2007 and said soaring rents and food prices were the main reasons. Abu Dhabi, the principal oil-producing emirate, had the highest inflation rate of nearly 11.6 percent, followed by Dubai and Sharjah.

The rate last year meant the UAE had the second highest inflation level in the GCC after Qatar, which recorded over 13 per cent. The UAE rate was also nearly triple Saudi Arabia's inflation of around 4.1 per cent and four times the inflation rate in Bahrain.

Last year's figure was far higher than the inflation rate of 9.4 percent recorded in the UAE in 2006 and nearly double the rate in 2005.

Economists expect inflation to remain high this year as rents are rising, food prices are expected to increase further, and the UAE remains reliant on imports, which have grown in value and quantity because of a regional business upsurge and the peg between the UAE dirham and the dollar.

DOLE Advises OFWs on UAE Rules on Passports

The Department of Labor and Employment (DOLE) today advised overseas Filipino workers seeking or returning to their jobs in the United Arab Emirates (UAE) to check on the validity of their passports to avoid delay, which could adversely affect their employment in the Emirates.
Labor and Employment Secretary Marianito D. Roque said the UAE government has issued new rules concerning the validity of passports of expatriates and visitors in the Emirates.
In line with the rules, Roque said the Philippine passport must be valid for not less than six months if the OFWs have no UAE residence permit. If the OFWs hold a UAE special entry permit or an employment visa, their Philippine passports must be valid for not less than three months.
The DOLE Chief said that without valid passports, OFWs will not be granted a UAE entry permit or entry visa, which they need in order to enter the emirates and also return to the home country or any country, which issued their passports.
An entry visa indicates the approval to be made on the OFW or visitor's passport/travel document, allowing him or her to enter the UAE.
This visa can be issued by a UAE embassy or consulate in the country of the person who is applying for the entry visa. It can also be issued by the Naturalization and Residency Department in the UAE.
An entry permit is a special document issued to expatriates allowing them to enter UAE. It is issued only by the Emirates' Naturalization and Residency Department.
Roque said OFWs working in the UAE whether alone or accompanied by their families should follow the rules set by the UAE government concerning visas and entry permits to avoid problems that may hinder their jobs in the Emirates.
He told the OFWs to ensure that their passports are valid adding that those with expiring passports may apply for renewal with the Department of Foreign Affairs in Pasay City or at the Philippine Embassy in Abu Dhabi. (PNA)

Clock Ticking for Expat IDs

Abu Dhabi--UAE authorities are setting a firm deadline to force all expatriates to carry national identity cards.

Darwish Al Zarouni, Director General of the Emirates Identity Authority, said that all expatriates in the country will be required to have the national identity card for governmental, semi-governmental and private transactions by the end of 2010.

Without the cards, expats won't be able to register cars, transfer ownership of vehicles or do banking transactions. "They will face problems dealing with all sorts of transactions, including banking, in case they don't get the card," said Al Zarouni.

Emiratis without identity cards will not be able to receive any service from government, semi-government and even private organisations from the beginning of next year.

"The identity card which is meant to verify identity and simplify transactions will be compulsory for all Emiratis from the beginning of next year," he said. He added that starting next month, EIDA will discuss the system of implementation with all governmental and private organisations.

"We had talks with the Abu Dhabi Traffic Department which culminated in making the card mandatory for Emiratis to transfer the ownership of their cars and do other transactions at the department," he said. "Other departments will follow to link the card to services that will gradually enable the holders to use it as a multipurpose smart card." Among the estimated total population of 835,000 Emiratis, 285,000 have not yet registered.

"Among the unregistered Emiratis, most of them are children below 15 years. Parents coming for registration do not bring their children due to a misunderstanding that it is not compulsory."

Al Zarouni made it clear that although obtaining an identity card is optional for children below 15 years, registration with the population register is compulsory. "We give an identity number to children, which is compulsory for any official transactions including educational matters," he said.

Al Zarouni said EIDA will have access to the Ministry of Labour's database to integrate labour cards with national identity cards, as per an agreement signed by the two. The agreement between the MoL and EIDA will facilitate identity cards being issued to about 3.1 million workers in the country. Ministry officials said they would encourage employers to facilitate registration of their employees for identity cards.

Al Zarouni said the card will eventually enable holders to use it in place of labour cards, driving licences, health facilities and travelling to GCC countries [for citizens only], e-payments and an e-gate card, which provides a fast-track immigration clearance using smart technology and a fingerprint scan.

EIDA had been entrusted a project worth US$55 million (Dh202 million) to issue about 5 million ID cards to both citizens and expatriates by 2010.

Details: How to register

Applicants can fill in the registration form on http://www.emiratesid.ae and print it out to submit at any of the 24 registration centres in the country. To find out the locations and opening times of the centres and documents required visit the website or call the EIDA call centre on 600 523 432.

People looking to register from the comfort of their homes can contact EIDA's call centre and make an appointment for its mobile registration service. The service charge is Dh500 per family (apart from the registration fee), provided all family members are registered in the same family book or under one sponsorship, in addition to Dh10 for every family member.