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FINANCIAL NEWS
Recovery, development to make UAE more expensive: EIU
11 Jul 2011
(MENAFN) Economic Intelligence Unit (EIU)’s Worldwide Cost of Living 2011 said that the international economic recovery would cause inflation to increase in the UAE, while other Middle Eastern capitals will remain cheap places to live, Emirates 247 reported.
The EIU predicted that the economic recovery would raise oil and international food prices. Increased prices would combine with planned infrastructure development in the UAE to raise inflation to an average of 2.2 percent over the next four years.
The survey also predicted that the purchasing power of the dirham would decline, making the UAE more expensive, since it is pegged to the US dollar at Dh3.673: USD1.
In contrast, the survey put Algiers in Algeria, Tehran in Iran, Tunis in Tunisia, and Jeddah in Saudi Arabia, among the 10 cheapest places to live. EIU said that lack of development, weak currencies, and price controls or subsidies made these cities less costly.
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