UPDATE: UAE Not Affected By Russian Wheat Export Ban -Official
Posted by Zawya
Zawya Dow Jones News
Monday, Aug 16, 2010


DUBAI (Zawya Dow Jones)--A Russian ban on wheat exports has not affected food prices in the United Arab Emirates, the Arab world's second largest economy, where there are no concerns of a supply shortage, an economy ministry official said Monday.

"There is no shortage of any kind," Hashem Al Nuaimi, director of customer protection at the ministry of economy told Zawya Dow Jones while touring Dubai's central fruit and vegetables market.

"There are alternatives," Al Nuaimi said, adding that commercial buyers chose from alternatives to Russian wheat as they saw fit.

Russia, a major wheat supplier, decided to ban wheat exports from Aug. 15 until the end of the year in response to a severe drought and wildfires that have devastated its harvest. The decision has sent global wheat prices soaring and stoked fears of shortages.

"The price of flour [in the U.A.E.] hasn't changed," Al Nuaimi said Monday. "We can assure consumers that there's been no effect."

The oil-rich Gulf countries import an estimated 85% to 90% of all basic food goods, according to a recent report by the Arab Organization for Agricultural Development.

Egypt--the world's top importer and a major customer of Russia's--said last week that the recent rise in wheat prices could cost it an additional four billion Egyptian pounds, or about $705 million.

RAMADAN PRICES

Al Nuaimi Monday toured the fruit and vegetable market in Al Aweer, a suburb of Dubai, and a nearby co-operative supermarket to check price increases and assure consumers with the onset of Ramadan.

During Ramadan, the Muslim holy month of fasting which began last week, families increase their food purchases by upward of 25%. The anticipated surge in demand sends food prices higher during the month.

"We monitor these prices to make sure any increase is justifiable," Al Nuaimi said.

"I haven't really seen a change compared to last year," said one shopper. "The price of some vegetables has gone up by maybe 5%, but that's normal for Ramadan."

-By Nour Malas, Dow Jones Newswires; +9715 0 2890223, nour.malas@dowjones.com

(Liam Pleven and Patrick Barta of The Wall Street Journal contributed to this article.)

Copyright (c) 2010 Dow Jones & Co.

(END) Dow Jones Newswires

16-08-10 0943GMT

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