ABU DHABI // While the retail sector is expected to continue to grow this year, a strong dirham means visitors to the UAE will find prices at the shopping malls higher than before.
Industry figures said that retailers may have to drop their prices to keep up sales.
Errol Fonseca, head of retail at Travelex, said the dirham, which is pegged to the US dollar, had “strengthened significantly” in recent weeks.
“While this is great news for residents travelling from the UAE, it means the majority of visitors will find it more expensive,” he said.
According to numbers crunched out by Travelex recently, Russian tourists are among the hardest hit. Their rouble has declined 19 per cent over the past 12 months against the dirham.
That means their roubles buy 19 per cent fewer dirhams compared to January last year.
Many others will also be finding themselves taking a hit after exchanging their home currency, including those with euros (11 per cent decline), Chinese yuan (6 per cent), British pound (4 per cent) and Indian rupee (5 per cent).
Visitors from Turkey will be among the hardest hit, with their liras buying 29 per cent fewer dirhams.
newsdesk@thenational.ae