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How conflict in the region could make your petrol, groceries and other bills more costly

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As tensions between Israel and Iran intensify, now with the US involved, experts say the impact could soon be felt far beyond, hitting your wallet in the form of rising fuel, food, and living costs.

Oil prices are already climbing, and economists warn there’s more to come.

Why Oil Prices Are Rising

The Middle East is home to some of the world’s biggest oil producers, and any conflict in the region quickly rattles global markets. Following the US bombing of Iranian nuclear sites, oil prices jumped 3 per cent, and further escalation could push prices well past $100 per barrel, according to experts.

If the Strait of Hormuz shuts down, the supply will be disrupted, and oil prices could spike.

About 20 per cent of the world’s oil supply passes through the Strait of Hormuz, and if it closes, it will send shockwaves across energy markets and supply chains.

What This Means for Everyday People

Higher oil prices affect much more than just what you pay at the pump. Here’s how:

  • Fuel and energy costs: Expect higher prices for petrol, electricity, and cooking gas.
  • Food and goods: Rising transport and production costs lead to more expensive groceries, clothing, and everyday items.
  • Government budgets: Countries that subsidise fuel, like Indonesia and India, could face serious pressure on public spending.

Who’s Most at Risk?

Countries in Asia and some European nations are vulnerable because they rely heavily on oil imports from the Middle East. India, for example, imports around 85 per cent of its crude oil, while Indonesia brings in about 60 per cent. Countries like Thailand and the Philippines also depend on Gulf oil.

If oil prices increase by $10–20 per barrel and stay high:

  • India’s oil import bill could grow by $30–40 billion annually
  • Indonesia could face cuts to welfare and infrastructure spending
  • Some governments may have to choose between fighting inflation or keeping currencies stable

Are There Any Alternatives?

Not really, not in the short term. Oil reserves might provide a short-term buffer, but they won’t last long.

Without substitutes, prices will need to rise to reduce demand, meaning households and businesses will feel the pinch.

The growing conflict in the Middle East could soon mean:

  • Higher fuel and electricity bills
  • More expensive groceries and goods
  • Pressure on government subsidies and spending

With over 35 years of experience in journalism, copywriting, and PR, Michael Gomes is a seasoned media professional deeply rooted in the UAE’s print and digital landscape.

Announcements

Final Rentals taps 13,000-car GCC fleet in new AUTORENT Alliance

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British car rental technology platform Final Rentals has announced a strategic partnership with AUTORENT, one of the Gulf region’s largest vehicle rental and leasing operators, as it accelerates expansion across the GCC.

The agreement gives Final Rentals access to AUTORENT’s fleet of more than 13,000 vehicles operating across the UAE, Saudi Arabia, Bahrain and Oman, significantly strengthening the company’s regional presence.

The move marks a homecoming of sorts for Final Rentals, which launched its first operations in the UAE in 2021 before growing into a global platform serving customers in more than 65 countries.

The company’s growth has been rapid. Annual bookings surged from just 1,900 in 2021 to more than 139,000 in 2025. Momentum has continued this year, with 148,065 bookings recorded in the first five months of 2026 alone, already surpassing its full-year 2024 performance.

“The UAE is where Final Rentals started,” said CEO Ammar Akhtar.

“Many of the lessons that shaped our technology and business model were learned here. Expanding our Gulf operations is both a strategic and symbolic step as we return with a much larger international network and greater scale.”

Founded in Wales in 2016, Final Rentals operates a digital marketplace that connects travellers with local vehicle rental providers across Europe, the Middle East, Africa and the Americas.

For AUTORENT, the partnership supports its digital transformation ambitions by enhancing online booking capabilities and improving customer access to its vehicle network across the region.

The announcement comes as economic ties between the UK and Gulf countries continue to strengthen, with discussions ongoing around a proposed UK-GCC free trade agreement aimed at boosting trade and investment.

Industry observers say the Gulf remains an attractive destination for international technology companies due to its rapidly growing digital economy, advanced infrastructure and strategic position linking Europe, Asia and Africa.

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Getting a UAE work permit could soon become faster and easier

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The UAE is preparing to make work permit applications even faster and simpler as the Ministry of Human Resources and Emiratisation (MoHRE) launches a new phase of labour market reforms.

As part of the initiative, MoHRE has opened a public consultation period until July 30, inviting employers, employees and members of the public to share feedback on existing work permit services and suggest improvements.

The ministry said the latest reforms will focus on simplifying procedures, reducing administrative requirements and expanding digital services to improve customer experience and speed up transaction processing.

Faster, simpler work permit services

According to MoHRE, the planned upgrades are designed to support the UAE’s wider Zero Government Bureaucracy Programme by making work permit services more efficient and user-friendly.

The ministry recently removed the requirement for supporting documents across several permit categories and reduced mandatory application fields by up to 97 per cent, significantly cutting processing times.

Officials say the next phase will build on those changes by redesigning permit procedures and increasing the use of digital channels.

13 types of work permits

MoHRE currently issues 13 different work permits tailored to various employment arrangements, including:

  • Recruitment permits for workers hired from outside the UAE
  • Transfer work permits
  • Family-sponsored resident work permits
  • Part-time work permits
  • Temporary and mission work permits
  • Freelance work permits
  • Golden Visa holder work permits
  • Student training and employment permits
  • Juvenile work permits for individuals aged 15 to 18
  • UAE and GCC national work permits

The ministry said the reforms are aimed at supporting private-sector growth, protecting workers’ rights and strengthening the UAE’s position as a competitive global labour market.

Public feedback open until July 30

Residents, employers and businesses can submit suggestions through MoHRE’s electronic consultation platform before July 30.

The ministry said public feedback will help shape future enhancements and support the development of faster, more flexible and fully digital government services aligned with the UAE’s long-term economic vision.

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Dubai launches new digital platform to simplify SME setup and reduce expenses

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Dubai has unveiled a new one-stop platform aimed at making it faster, simpler and more affordable for entrepreneurs to launch and grow businesses in the emirate.

Launched by the Dubai Department of Economy and Tourism (DET), SME in a Box brings together essential business services on a single platform, allowing founders to access licensing support, banking, digital payments, logistics, telecommunications and other operational tools without dealing with multiple providers separately.

The initiative is designed to remove many of the challenges entrepreneurs face during the business setup process, helping startups and small businesses reduce costs, save time and get operational more quickly.

According to DET, businesses using the platform could unlock more than Dh80,000 in potential value through partner discounts, fee waivers, subsidised onboarding and preferential service packages. Founders may also save up to 200 hours typically spent comparing providers, negotiating contracts and completing onboarding requirements.

The platform launches with 18 private-sector partners, including Emirates NBD, Commercial Bank of Dubai, du, Aramex, DHL and several fintech and business service providers.

Certain digital services, including payments, logistics and telecom solutions, can be activated within as little as 24 hours, while more complex services such as corporate banking and licensing continue to follow standard regulatory procedures with streamlined onboarding support.

Ahmad Al Room Almheiri, CEO of Dubai SME, said the platform was developed in response to entrepreneurs seeking greater clarity, speed and cost efficiency when setting up businesses.

The initiative supports the goals of the Dubai Economic Agenda (D33), which aims to further strengthen Dubai’s position as one of the world’s most attractive destinations for investment, entrepreneurship and business growth.

Future phases will introduce deeper digital integration and eventually connect SME in a Box with Dubai’s broader business ecosystem, creating a seamless journey from company formation to scaling and expansi

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