DUBAI: The United Arab Emirates plans to combat rising global commodity prices by fixing the cost of about 400 foodstuffs and household products at 70 outlets in the emirates, an economy ministry official said Thursday. The measure, starting June 1 and so far set until the end of the year, is expected to help retailers including France's Carrefour and be easily absorbed by the UAE that imports most of its food and already subsidizes other consumer goods. "These outlets include Carrefour, cooperative societies, Lulu Hypermarket and Spinneys which form 75 percent of the market share of retail outlets in the UAE," Mohammed Al-Shihhi, undersecretary at the economy ministry, told a conference. "We have received indications from different organizations that there will be price increases in most commodities in 2011 up to 2015," he said. The ministry did not provide details on the amount that will be allocated for the subsidy or if it will be financed separately by each of the emirates. The UAE said earlier it will spend $1.6 billion to improve infrastructure in less developed northern emirates.
