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Oil pinch hurt growing in the UAE as Uber, Sharjah Taxi take cues

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Kumar Shyam

The pinch on the pockets of the UAE residents is starting to hurt badly by the day with rising oil prices and its knockon effects.

As soon as the petrol and diesel prices went up by at least 50 fils for the month of July, ride-hailing company Uber has followed suit.

The company sent out an email on Friday to inform about the fare hike. Uber would charge as much as 11 per cent extra for some trips, the American company added.

The hike is Uber’s second this year in the UAE, after a hike in March but the UAE’s market-linked price for the black gold has continued unabated. The country opted for a dynamic pricing with global trends in 2015. But Russia’s attack on Ukraine has messed all economies around the world.

Yet, petrol in UAE is three times more expensive than in Kuwait and almost double the average cost per litre in the six-member Gulf Cooperation Council, according to a Bloomberg report.

Dynamic pricing

Uber is not alone with Sharjah Taxi also deciding to base their fares with the rise or fall of fuel prices with this month.

The Sharjah Roads and Transport Authority (SRTA) said the meter flag down rate will be increased or decreased every month in direct co-relation with the prices. Petrol prices in the UAE have jumped over 56 per cent since January 2022.

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Also read: UAE ranks first regionally and twelfth globally in growth potential
UAE petrol price to get costlier by 50 fils in July 2022
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Early last month, Suhail Al Mazrouei, Minister of Energy and Infrastructure, had admitted that prices could go higher as Chinese demand is likely to recover significantly while efforts by Opec+ to raise production were not yielding results fast enough.

The latest data showed Opec+ was running 2.6 million barrels a day short of its production target, Mr Al Mazrouei said at the Middle East and North Africa-Europe Future Energy Dialogue in Jordan.

He expects China, the world’s biggest importer and second largest economy, which has been easing its coronavirus lockdowns, to “come with more consumption”.

“With the pace of consumption we have, we are nowhere near the peak because China is not back yet,” Mr Al Mazrouei said. “The situation is not very encouraging when it comes to the quantities that we can bring. We’re lagging by almost 2.6 million barrels a day and that’s a lot.”

 

Dubai most expensive city in the Gulf

Meanwhile, Dubai has been ranked among the world’s most expensive cities to live and work in for expatriates this year, according to the Cost of Living survey by Mercer.

Dubai-expensive The study, which looks at how the rising cost of living has impacted workers’ financial wellbeing in 227 cities worldwide, placed Dubai in the 31st position.

The emirate, which has been seeing a growing influx of millionaires and demand for property recently, emerged as the costliest city in the Gulf Cooperation Council (GCC) region, beating out the neighbouring cities of Riyadh, which landed in the 103rd position, Jeddah (111th place), Manama (117), Muscat (119), Kuwait City (131) and Doha (133).

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AI now keeping track of UAE motorists: Here’s why

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The UAE is stepping up efforts to improve road safety, with authorities increasingly turning to AI (artificial intelligence) to monitor driver behaviour and reduce traffic accidents.

The UAE Ministry of Interior revealed that AI-powered systems are now being used across the country to analyse motorists’ behaviour behind the wheel. The initiative forms part of a broader strategy to tackle human behaviour.

Road safety

Despite ranking among the top countries globally for road quality, the UAE continues to face concerns over traffic-related injuries and fatalities, with reckless driving and unsafe habits cited as leading causes.

Officials say the new AI systems go beyond traditional enforcement. Dedicated digital platforms are being used to identify accident hotspots, allowing authorities to respond with targeted safety measures and improved traffic management.

Training programmes for motorists

Drivers involved in both major and minor accidents are also being closely monitored. Based on their behavioural profiles, they are enrolled in structured training programmes designed to address risky driving patterns and improve overall road discipline.

Brigadier Dr Rashid Sultan Al Khudr, Director General of Legal Affairs at the Ministry of Interior, said AI tools are also being used to assess driver risk levels. This helps authorities develop more focused initiatives and introduce standards aimed at curbing dangerous driving.

By combining high-quality infrastructure with AI-led monitoring and behavioural interventions, officials hope to significantly reduce accidents and create safer roads for all users.

The initiative also aligns with the UAE’s broader vision of building smarter, more sustainable cities, where innovation plays a central role in improving everyday life.

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UAE’s Etihad Rail transports Nissan cars for the first time

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The UAE has marked a significant milestone in its logistics sector, with Etihad Rail successfully transporting its first consignment of Nissan vehicles by rail from Fujairah to Abu Dhabi.

The shipment, carried from the ports of Fujairah to the dry port at the Industrial City of Abu Dhabi (ICAD), represents the first time cars have been transported via the country’s national rail network. The move was carried out in collaboration with Al Masaood Automobiles and Etihad Rail Freight.

Industry leaders say the development signals a major step forward in diversifying rail cargo beyond traditional bulk commodities, expanding into high-value shipments such as finished vehicles. It also highlights the growing role of rail in integrated, end-to-end supply chains across the UAE.

Omar Alsebeyi, CEO of Etihad Rail Freight, described the milestone as a clear demonstration of the network’s capabilities. For the automotive sector, the collaboration marks a first-of-its-kind partnership.

Beyond efficiency gains, the shift to rail freight also supports sustainability goals. Rail transport produces significantly lower emissions compared to road freight, aligning with the UAE’s broader environmental ambitions, including the Net Zero by 2050 Strategic Initiative.

Officials say the milestone reflects the strength of the UAE’s integrated infrastructure ecosystem, where strategic investments and private sector collaboration are driving innovation in logistics and supporting long-term economic growth.

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Dubai Ruler launches world’s largest dates factory to fight child hunger

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Dubai is taking a bold step in the global fight against hunger, with Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, announcing the launch of the world’s largest dates factory aimed at feeding millions of malnourished children each year.

The landmark initiative will produce up to 150 million date-fortified food units annually, targeting children suffering from malnutrition in some of the world’s most vulnerable communities.

Announced on Friday, the project is being developed in collaboration with key partners, aligned with a broader humanitarian vision led by Sheikh Mohammed. The factory will transform dates, a staple deeply rooted in the UAE’s heritage, into high-value nutritional products designed to combat hunger at scale.

“The goal is to produce 150 million date-fortified food units annually, dedicated to children suffering from malnutrition,” Sheikh Mohammed said, highlighting the UAE’s commitment to global food security.

He emphasized the cultural and historical significance of dates in the region, noting that palm trees have sustained communities for generations. The new initiative seeks to build on that legacy by repurposing the fruit into a modern solution for one of the world’s most urgent challenges.

The project forms part of a wider humanitarian push by the UAE. Earlier this year, Sheikh Mohammed launched the Edge of Life Ramadan campaign, which aims to help save five million children under the age of five from hunger and malnutrition.

Officials say the initiative also reflects a broader call for collective action, encouraging participation from individuals, institutions, and organisations across the UAE to support vulnerable populations worldwide.

By combining tradition with innovation, the UAE’s latest project signals a growing role in tackling global humanitarian challenges, one that extends far beyond its borders.

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