Cartel capers

Even the Weasel is occasionally amazed by the level of blatant price fixing that is all too common in this market. Today on the Dubai eye business breakfast we had the rare treat of listening to one of the local managers justifying the setting up of a cartel to run remittance exchanges, listen here 23rd July .

What really tickles the Weasel is the fact that Mr Joseph Ponnou not only is stupid enough to announce this to all his potential customers but can't seem to realise that this may be a foolish move. In a move that would land him straight in court in the US or EU he blithely witters on that the formation of the cartel is in the consumers best interest, while opening the subject by explaining that it has been set up to ensure prices are as high as possible and no-one undercuts the members of this chummy club.

The only way to combat the runaway inflation we are all experiencing is to allow free competition, eventually prices will find their correct level. Much as the Weasel enjoys the low price of fuel and the attempt at a rent cap, in the end they simply distort the market and all pay the price.

The awarding of import licences to single companies and the set-up of blatant price cartels keeps us beholden to conglomerates that simply print money on the back of UAE consumers.

And that's everyone not just expats.