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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.

 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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From growth to welfare: UAE marks International Workers’ Day 2026

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The UAE is marking International Workers’ Day on May 1, recognising the vital role workers play in driving the country’s growth and long-term development.

According to the Ministry of Human Resources and Emiratisation, the occasion reflects the country’s continued focus on worker welfare, labour rights, and the creation of a supportive work environment across sectors.

Speaking on the occasion, Abdulrahman Al Awar said workers remain a key pillar of the UAE’s economic and social progress, contributing to its position as a leading global destination for living and working.

For many expats in the UAE, who make up a significant part of the workforce, the day serves as a reminder of the country’s evolving labour landscape, with increasing emphasis on safety, wellbeing, and social protection.

Recent figures highlight that progress. Between 2021 and 2025, the UAE workforce more than doubled, while the number of companies rose significantly, reflecting strong economic momentum. Skilled labour also saw steady growth, supporting the country’s push towards a more competitive and diversified economy.

Worker protection measures continue to expand, with high compliance reported for initiatives such as the midday break policy, which aims to reduce heat stress during the summer months. Social safety nets have also strengthened, with the majority of eligible workers now enrolled in the unemployment insurance scheme.

On the ground, efforts to improve daily living conditions are also visible. Thousands of rest stations have been introduced for delivery workers, while labour accommodation standards have expanded to benefit millions across the country.

To mark the occasion, authorities are distributing gifts to workers at worksites, accommodations, and airports, a gesture that reflects the UAE’s broader focus on community, appreciation, and inclusion.

As the country continues to grow, International Workers’ Day serves not just as a celebration, but as a reflection of how the UAE is shaping a more balanced, inclusive, and future-ready labour market.

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UAE petrol prices rise for May 2026, here’s what you’ll pay now

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Motorists across the UAE will see higher fuel costs this month, after the UAE Fuel Price Committee announced updated petrol rates for May 2026.

Under the new pricing, Super 98 petrol will cost Dh3.66 per litre, up from Dh3.39 in April, while Special 95 rises to Dh3.55 per litre from Dh3.28. E-Plus petrol will increase to Dh3.48 per litre, compared to Dh3.20 last month.

Diesel prices remain unchanged, offering some stability for transport and logistics sectors.

The revised rates come into effect from May 1, in line with the UAE’s monthly fuel price adjustment system, which reflects fluctuations in global oil markets.

What this hike means

For many UAE residents, the increase may impact daily commuting costs and monthly budgets, particularly for those relying on personal vehicles. As temperatures rise and road travel remains a key part of daily life, fuel prices continue to be a closely watched expense.

Over a full tank, the increase may add up, nudging monthly fuel budgets higher. Ride-hailing fares and delivery costs could also see a marginal impact.

While diesel remaining unchanged offers some relief for logistics and transport, many expats may look to adjust travel habits, such as carpooling or combining trips, to manage expenses more efficiently.

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What new UAE anti-money laundering measures mean for businesses

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The UAE is strengthening its crackdown on financial crime, with the National Committee for Anti-Money Laundering and Combating the Financing of Terrorism and Proliferation Financing approving a new set of measures to boost transparency and enforcement.

Announced after its latest meeting, chaired by Khaled Mohamed Balama of the Central Bank of the UAE, the updates aim to strengthen how authorities detect, investigate, and prevent illicit financial activity.

A key highlight is a new national guide on financial intelligence and money laundering investigations, which improves coordination between agencies and introduces updated procedures for tracking and recovering assets, including those linked to virtual assets.

The committee also approved risk assessments across financial institutions, virtual asset providers, and non-financial sectors, enabling more targeted enforcement and oversight.

Stricter compliance for businesses

For businesses in the UAE, the new measures mean stricter compliance requirements but also a more stable and trusted operating environment.

Companies, especially in finance, real estate, and emerging sectors like virtual assets, will need to strengthen due diligence, improve internal controls, and align with updated risk assessments and reporting standards set in coordination with the Central Bank of the UAE.

While this may increase operational oversight and compliance costs in the short term, it enhances transparency, reduces exposure to financial crime risks, and reinforces the UAE’s reputation as a secure global business hub, ultimately boosting investor confidence and long-term growth opportunities.

Additional updates include revised national risk assessments on proliferation financing and non-profit organisations, reinforcing a risk-based approach to regulation.

While largely behind the scenes, these changes play a key role in maintaining the UAE’s position as a secure and trusted global financial hub, something that directly impacts businesses, investors, and the wider expat community.

Officials say the measures mark a more advanced phase in the country’s regulatory framework, with stronger coordination and improved readiness to address evolving financial risks.

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