JEDDAH: Business owners and experts are warning that the Kingdom is going to be hit by a wave of high prices across the board. This will be severe on consumers' pockets, particularly those earning less than SR5,000 a month. They have suggested a bundle of measures to soften the expected blows. This includes the government aiming its subsidies at lower income groups. The government should also get key Saudi players to constantly monitor international markets to identify where the Kingdom can buy cheaper consumer goods. They stressed that more powers should be given to the Ministry of Commerce to impose stiff penalties on merchants who tamper with prices. Mazen Batarjee, Deputy Chairman of the Jeddah Chamber of Commerce and Industry, suggested that the public be divided into groups based on their income. Those earning between SR3,000 and SR4,000 a month should be given direct aid in the form of free accommodation and essential services such as medical insurance and electricity. This will allow these families to spend their income on purchasing essential consumer products. The second group, earning between SR5,000 and SR6,000 a month, should also be provided free accommodation and medical services. This method enables the government to direct its subsidies to the most deserving segments of society. Batarjee said that government import subsidies are currently benefiting the entire Saudi populace, including merchants. In fact merchants benefit more than consumers because they can sell commodities at a profit while getting the benefit of the subsidies. Dr. Ibrahim Al-Sulaiman, a member of the Shoura Council, urged the Ministry of Commerce and Industry to employ more inspectors as ordered by King Abdullah, Custodian of the Two Holy Mosques. There needs to be tighter control of the market, he said. Dr. Nasser Al-Twaim, the Chairman of the Consumer Protection Society, said there is an urgent need to pass the much-anticipated Consumer Protection Law and establish consumer courts. These measures will protect consumers from merchants' greed.
