UAE supermarket supplies stable, despite panic buying

• Spinneys reports panic buying
• Buyers want tinned goods and water
• Retailers ‘are well stocked’

UAE supermarkets report supplies remain ample and prices are unlikely to rise in the short term, despite fears that the widening regional conflict will cause residents to rush to stock up on essentials.

“[Panic buying] started last night and it’s certainly been quite extreme today,” said Tom Harvey, general manager, commercial at supermarket chain Spinneys.

With scenes reminiscent of the early days of the Covid-19 pandemic in 2020, Harvey said demand has surged for long-life and tinned goods, meat and bottled water, echoing purchasing patterns seen during lockdowns.

Despite the rush, he said retailers are well stocked. “There is ample stock of food and water in the UAE,” he said, adding that only “very short-term interruptions” are expected. 

Supermarket chains have also reassured customers that no additional costs will be passed on.

“We have very strict controls. There are regulations and laws regarding the prices of goods. They apply to us as retailers and our suppliers,” Harvey said.

Specialised task forces have been activated, and retailers are working closely with the Ministry of Economy to monitor inventories. 

More news on the Iran conflict

• Oil prices expected to rise when trading resumes
• Gulf markets react to Iran strikes while Kuwait halts trading
• Uncertainty grips Gulf as Iran conflict hits home

Abdulla bin Touq Al Marri, minister of economy and tourism, said in a statement the UAE “continues to enhance its preparedness for various regional and international developments, placing food security and the availability of goods among its highest priorities.”

He added that import activity and the flow of goods into local markets are proceeding normally, with no signs of shortages.

However, the impact will be felt globally.

“What people may not understand is that within the Middle East there are huge international hubs for air freight that create distribution centres for the rest of the world,” said Marco Forgione, director general of the Chartered Institute of Export and International Trade.

“So we’re going to see huge disruption immediately on those goods and products that were due to fly in and be distributed by air,” he said.

This could quickly affect consumer products and high-value goods such as pharmaceuticals. 

“So the potential impact on this is immediately a price increase. We’re also going to see a potential shortage of availability. So suddenly things may not be available,” he said.

Shipping routes are also under strain. Iran’s Revolutionary Guard said that it is blocking the passage of vessels through the Strait of Hormuz, while many container lines have suspended transits through the Suez Canal, Bloomberg reported.

At least 150 tankers have dropped anchor in open Gulf waters beyond the Strait of Hormuz and dozens more were stationary on the other side of the chokepoint, according to Reuters. 

“The biggest potential impact will be on some of the developing nations, the global south, which is dependent on agricultural products, moving from the EU, Russia, Ukraine through the Black Sea and Suez Canal to East Africa and then to Asia,” Forgione said.