Effects of the naira devaluation and spike in
foreign exchange (forex) are currently biting
hard in shops in Dubai, the United Arab
Emirates, (UAE), the favourite shopping centre
for many Nigerians and other nationals
around the world.
The popular Dubai Mall, in the heart of the
city, recounted that patronage from high-
spending Nigerians had dropped in the last
couple of months.
A visit to the mall at the weekend showed that
some shops are currently selling at 20 to 50
per cent discounts. Some are, however,
worried that their offers are still not drawing
the Nigerian customers as it used to in the
past.
The development, it was learnt is for reasons
not unconnected with the economic recession,
weakening of the Naira against the dollar, and
worst still, the inability of bulk and luxury
goods traders to access dollars at interbank
market rate.
For instance, ALDO store in the Dubai Mall,
currently sells shoes, bags, jewellery, wrist
watches among others at 20 to 40 per cent
discount. But to the surprise of an attendant,
Aisha, a Pakistani, “some of our customers
are still not coming.”
She said: “There are sales here every day but
Nigerians are not coming around. We love
Nigerians. They buy plenty from here during
promo sales. In one week of promo sales, we
would have finished the old stock. But this
time, we have not seen them. Please, tell
them to come.”
The Guardian learnt that the landing cost of
some luxury goods like bags, shoes, jewellery
(from the Souk), fabrics, perfumes, cosmetics
and electronics have more than doubled in
prices since the Central Bank of Nigeria’s
(CBN) flexible foreign exchange policy was
introduced in June.
For instance, a simple sandal at ALDO, after
30 per cent discount, costs 171Dirhams (DH),
that is, $46 or N20, 700. Same item at Deira
open market was priced for 100DH ($27.4 or
N12,329). Similarly, a simple male adult
canvass was offered at 40 per cent discount
for 147DH, $40 or N18,123., while a female
hand bag sells for 260DH $71 or N31,950 at
the mall.
A Nigerian, Eniola Bakare, in company of her
husband, was seen touring the Dubai Mall.
Bakare told The Guardian that it is almost
“senseless” to buy anything from the shop and
think of selling same in Nigeria at this
time.She said: “These are goods I used to buy
from Dubai, United Kingdom and China. But I
dare not try them now. The prices, when
convert to Naira are just beyond what the rich
will accept from you. It is not that they
increased the prices in Dubai, but our own
currency is the problem. It is weak and almost
useless for this trade.”
The couple left the mall empty handed after
about three hours of window shopping.Bakare
said: “All we are left with in Dubai is the
wonderful experience on the Emirates Airplane,
site-seeing of skyscrapers, visit to Burj
Khalifa, and dune drive in the desert, tour IMG
World of Adventure and return to Lagos with
nothing; so sad.”
According to reports, the bilateral trade
volume between Nigeria and UAE was in the
neighbourhood of $1 billion in the first
quarter of 2015. But the volume had dropped
significantly by at least $100 million as at
second quarter of this year.
Dubai attracts 13.2 million visitors yearly, of
which over 300,000 are Nigerians out of the
500,000 from Africa. While 60 per cent of the
Nigerian visitors were holiday makers, about
30 per cent are for business. The rest are for
education and healthcare and a host of
others.
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