FMCG firms say the Gulf war has sparked sharp, widespread jumps in raw material costs. To respond, companies are tightening budgets and moving to daily price surveillance, signaling frequent price changes across categories. Analysts warn this could strain the fragile consumer spending recovery that was boosted by recent tax reductions.
As the Gulf war continues, the UAE’s economy is showing early signs of stress. Hospitality, travel, and food and beverage firms are cutting jobs and reducing salaries, shifting focus from targets to survival. If the slowdown deepens, it may weigh on remittances sent to India by workers, with companies turning to cost controls similar to earlier pandemic measures.
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