World Cup football fakes keep Dubai’s ‘Dolce & Karama’ traders busy

Stores in Dubai's Karama district sell counterfeit shirts for a fraction of their official retail price.
Updated 22 June 2018
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World Cup football fakes keep Dubai’s ‘Dolce & Karama’ traders busy

  • Dubai's “Dolce and Karama” is the emirate's copycat capital
  • Neymar Jr shirts are proving especially popular with local shoppers

DUBAI: Tucked away in an old residential district and far from Dubai’s glitzy air-conditioned malls, the Karama area of the city is doing a roaring trade in selling World Cup football shirts.

But if you’re looking for the genuine article, you may have come to the wrong place.

Karama is Dubai's copycat capital where the knockoff imitations of the world's most famous fashion brands are sold for a fraction of the genuine price.

Known to some locals jokingly by the epithet “Dolce and Karama,” a play on the Dolce & Gabbana Italian fashion house, this is a place where if you have to ask the price, you probably can afford it.

With three weeks to go until football’s new world champions are crowned, the world’s biggest sporting tournament is keeping the tills chiming on the street that has become notorious for selling everything from fake Luis Vuitton bags to knockoff Ray-Ban sunglasses.

However since the tournament kicked off just over a week ago, it’s been football not fashion, that has put a smile on the face of traders.

Retailing for a fraction of their high-street cost, the copycat shirts — especially those bearing the name of Brazilian superstar Neymar — are flying off the stalls less than week into the tournament, as UAE-based fans who want to don the colors of their favorite team or player, look for bargains.

Mohammad Ashraf has been trading in Dubai’s Karama Shopping Complex for 15 years.

At his store, Mina Fashion, Ashraf said the World Cup has brought a booming trade.

When asked how many shirts he would sell prior to the Fifa World Cup, he shrugged.

“Maybe one, two — maximum five a day,” he said.

But the Indian trader has quadrupled his business since last week’s kick-off.

“Now, we have been very busy,” he said. “We sell at least 20 pieces a day — maybe more,” he said.

His football shirts are a fraction of the cost of the genuine article on sale in Dubai malls where retailers are feeling the pressure from the growth of online rivals, the introduction of VAT and the strong dollar to which the UAE dirham is pegged — that is hitting tourist spending hard.

Karama football shirts sell for about 65 dirhams ($18) in adult size and 55 dirhams for children. But the real deal costs three or four times as much a few miles down the road in the Dubai Mall, the city’s biggest tourist draw.

In Karama, the football shirts of the Brazil, Argentina and Germany teams have been among the biggest sellers.

And the most popular player?

Ashraf said shirts bearing the name of Brazilian footballer Neymar da Sila Santos Junior have been flying off the shelves.

Abdulla Javid, runs Nujoom Al Maleb in the Karama shopping district — a shop selling a variety of knock-off sportswear — including World Cup shirts for men, youths and children.

“They are not real, not branded — branded ones are very expensive,” he said.

“We have shirts for Germany, for Argentina, for Portugal, for Sweden, for Brazil and for Belgium,” he said, pointing to racks of multi-colored football shirts.

Mens shirts retail for about 45 dirhams for adult sizes in his shop and 40 dirhams for youths. For young children, he sells shirts and shorts for a combined price of 30 dirhams.

The World Cup has also been a welcome boom for business.

“Before we sell maybe between five to 10 (shirts) a day,” he said. “Now, at least 20 to 30 pieces a day. It has been very busy. This time is a good time for us.”

Also at Karama Shopping Complex is Zico Sports.

Ahmed Jaber, a 53-year-old trader, said there are good deals to be found in at the shop he has worked in since the 1980s.

He sells football shirts that are both “branded” and “non-branded” — in other words the genuine article and cheaper knock-offs.

He said customers have been happy to shell out for the genuine football shirts for the adult sizes — which he sells for 379 dirhams, but for children, shoppers prefer to buy the fake football shirts, which he sells for about 30 dirhams.

The most popular shirts since the start of World Cup have been for Brazil, Argentina and France, he said, but his shops have an abundance of kit for all competing countries.

When he asked how the 2018 World Cup had been for business, he laughed.

“Not bad at all!,” he said.


UAE banks benefit from US Fed rate rises

Updated 18 November 2018
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UAE banks benefit from US Fed rate rises

  • With the dirham pegged to the US dollar, the actions of the US central bank have a direct impact on interest rates charged by UAE banks
  • With another Fed rate hike potentially on the horizon in December, analysts said the Gulf country’s banks could find it harder to keep ramping up the cost of borrowing

LONDON: Banks in the UAE are reaping the benefits of the US Federal Reserve’s three rate rises so far this year, with healthy increases in net interest incomes helping bolster profits.
With the dirham pegged to the US dollar, the actions of the US central bank have a direct impact on interest rates charged by UAE banks.
The UAE Central Bank last increased its repo rate by 25 basis points and raised interest rates on certificates of deposit on Sept. 26 to bring it in line with the Fed’s earlier move.
With another Fed rate hike potentially on the horizon in December, analysts said the Gulf country’s banks could find it harder to keep ramping up the cost of borrowing for their corporates or individual clients.
“Due to ample liquidity in the system, supported by high crude prices, banks are struggling to pass the rate hikes to customers,” said Chiradeep Ghosh, research analyst at Sico Bank in Bahrain.

 

 “We expect UAE banks to report only a modest (net interest margin) expansion, despite a likely three to four more Fed rate hikes by the end of 2019.”
In the last reported quarter, UAE banks revealed increases in net interest income of varying degrees.
Banks’ profitability is typically driven by net interest income, which accounted for 69 percent of the UAE sector’s total net revenue in 2017, according to a Oct. 3 Moody’s Investors Services report.
Dubai-headquartered Emirates NBD reported one of the largest increases in interest income this year.
The bank posted net profits of 7.7 billion dirhams ($2.1 billion) for first nine months of the year, 24 percent up year-on-year. This increase was supported by 9.5 billion dirhams in net interest income, a 19 percent increase on the previous year. In contrast, non-interest income dropped 2 percent for the same time period.
First Abu Dhabi Bank (FAB) reported smaller increases, with net interest income reaching 9.75 billion dirhams for the first nine months of the year, marginally up by 0.1 percent.
The increase was slightly more noticeable in the third quarter alone, jumping by 1.2 percent compared to Q3 last year, according to its Oct. 23 statement.
FAB said net interest income was “broadly stable” due to “strong business volumes and rate hike benefits,” according to a bank presentation.
Dubai-based Mashreq Bank said its net interest income, combined with Islamic financing income, climbed by 4.5 percent in the first nine months year-on-year to reach 2.8 billion dirhams, according to a Oct. 21 filing.
Analysts said the increase in the banks’ interest-related income has helped to counter some of the risk of rising funding costs looming over banks.
“We expect that rising interest rates will increase system-wide net interest margins as banks’ higher gross yields outweigh the increase in funding costs,” Moody’s said.
Continued rate hikes could, however, start to affect the financing costs for corporate and individual borrowers and be a drag on economic growth, analysts said.
“Rate hikes would definitely dent the borrowing appetite of UAE corporations and the banks would not be left with much option but to lower their spread over interbank rate which they charge corporates,” said Ghosh.
“The capacity of UAE companies to bear higher debt burden would eventually depend on the economic activities in the UAE. A weak economic environment, along with a surge in higher funding cost may lead to pick up in delinquencies,” he said.
Ehsan Khoman, head of regional research and strategy at MUFG, based in Dubai, said the country should be able to absorb the impact of higher interest rates for now.
“Rising interest rates are unlikely to derail the UAE’s benign economic growth outlook in the near-term. The impact of higher rates should be more than offset by government stimulus. Having said that, it’s an additional factor to consider that GDP growth will remain weak by historical standards,” he said.
Some UAE companies have already reported higher financing costs in their latest Q3 results.
The UAE-based United Food Company (UFC) said on Nov. 5 that finance costs paid in the first nine months of the year reached 535,742 dirhams, compared to the lower amount of 364,568 dirhams recorded in the same period in 2017.
Dubai Investments said on Nov. 5 that finance expenses for the first nine months of the year reached 133.6 million dirhams compared to 69.4 million dirhams.

FACTOID

BACKGROUND

The US Federal Reserve has hiked interest rates three times this year. It left rates unchanged in November but is likely to make another hike next month.