Alamy via Reuters Connect
Food prices in Oman, including staples such as rice, flour, sugar and meat, are about 10 percent higher this Ramadan compared to last year, according to government data.
The Consumer Protection Office (CPO), a watchdog of the Ministry of Commerce, Industry and Investment Promotion, says retail sales are set to rise to $8 billion this holy month, up from $6.8 billion for last year’s Ramadan.
The CPO is also predicting that household spending will increase by 6 percent in 2025. The growth is largely attributed to rising commercial rents forcing shop owners to increase retail prices.
Rents in the second half of 2024 were 5.5 percent higher than in the first half, according to the Office of Regional Municipalities.
It is unclear why landlords have increased the rents on their shops. One possible explanation is rising maintenance costs. In the case of newer commercial buildings, higher construction costs over the past two years – driven by international shipping disruptions – may also be a contributor.
Despite the Ramadan price hikes, supermarkets are still crowded with shoppers filling their trolleys. After all, it is a month when many Omanis disregard overspending to treat themselves when they break their day-long fast with the Iftar.
The sharp rise in food prices may also be attributable in part to last year’s decision by the government to pay monthly pensions of $300 to citizens aged 60 and above. The state also granted $335 a month to disabled persons, widows and divorced women.
On top of that, the government allocated $460 million last month to pay off business loans and mortgages for low-income Omanis.
Retailers may sense there is more demand in the market – and consumers can afford to splash out.
If previous years are any indication, retail food prices are likely to return to normal after the fasting month. Nevertheless, the financial strain will be felt this Ramadan, especially by lower-income Omanis.
The minimum wage in Oman is set at $400 a month. For young married couples on low incomes, it may be a struggle to afford Iftar meals on top of car instalments and rent.
However, a sizeable number of Omani families come together during Ramadan, with extended families sharing Iftar meals. This not only helps reduce food expenses but also provides a meaningful opportunity to spend time together during the holy month.
Saleh Al-Shaibany is a journalist and lecturer, and CEO of AlSafa Press & Publishing
