Doha: Ramadan is upon us amid exceptional and unprecedented global economic condition with waves of inflation hitting the globe, accompanied by a record rise in commodity prices at the global level, in addition to disruption in supply chains and an increase in financing and borrowing costs, as well as other factors that put pressure on household budgets.
While there were expectations that the holy month will lead to a slowdown in growth in Arab and Islamic countries and will negatively affect production processes in them as a result of reducing work hours, experts polled by Qatar News Agency (QNA) contradicted those expectations.
Experts emphasised that there is no correlation between the month and the occurrence of a slowdown or the rise in prices and inflation. On the contrary, Ramadan is an opportunity for recovery, as it contributes to revitalising economic growth.
On the impact of Ramadan on the economies of Muslim and other countries and on the prices of commodities, experts agreed that many investment and industrial companies make huge profits as a result of the increased demand for their products during the holy month. Despite the waves of stagnation and recession that the world previously witnessed, especially in Europe, Islamic companies and restaurants continued to work well, with an increase in demand for halal food. Ramadan created commercial activity in Western countries and other countries with Muslim population.
Professor of Accounting at Qatar University Rajab Abdulla Al Esmail explained that consumption rates in Ramadan are very high. Afterward, there is Eid which revives the movement of the markets and increases sales compared to regular days and months.
Al Esmail added that it is very natural for the rate of consumption to rise during Ramadan, but there is a tradition of wrong consumption habits, adding that a balance between income and actual needs, away from extravagance and waste, is required.
In light of the current global conditions and the accompanying events that also put pressure on economies and
the pockets of families,
Al Esmail stressed the importance of distinguishing between necessary and luxury needs, while avoiding extravagance.
The Qatar University Professor explained that two people receiving the same salary every month might have a difference in the standard of living due to disparity in
managing expenses and indebtedness. Bank loans burden families, so they should be avoided as much as possible, especially if they are spent on consumerism.
