In exceptional and unprecedented global economic conditions, the blessed month of Ramadan approaches us, and waves of inflation hit the globe, accompanied by a record rise in commodity prices, at the global level, with disruption in supply chains, accompanied by a rise in financing and borrowing costs, and other factors, that may put pressure on on household budgets.
Contrary to the expectations of some, 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 the working period, due to the long hours of fasting. However, experts polled by Qatar News Agency (QNA) contradicted those expectations. .
Experts emphasized that there is no relationship to the month with the occurrence of slowdown or the rise and inflation of prices. On the contrary, F"Ramadan" An opportunity for recovery, thanks to the strong recovery it carries in the markets, as the blessed month contributes to revitalizing economic growth, and moves its wheels strongly, to move forward in achieving more gains and returns.
Regarding the extent of the impact of Ramadan on the economies of Muslim and other countries, and on the prices of commodities in them, experts unanimously agree that many companies, whether investment or industrial, make huge profits and multiply as a result of the increased demand for their products during the holy month. Of goodness and happiness befalls Muslims in all parts of the world.
Despite the waves of stagnation and recession that the world previously witnessed, especially Europe, Islamic companies and restaurants continued to work well, with an increase in demand for halal food, and that the holy month created commercial activity in Western countries, the United States of America, and other countries in which people live. Muslims in it, as Dr. Rajab Abdullah Al-Ismail, professor of accounting at Qatar University, confirms that consumption rates in the holy month are very high, and in addition to being a religious month, it is also a social month, in which visits and kinship ties abound, and Ramadan tables multiply, after which the joy of Eid comes, This revives the movement of the markets and increases the volume of their sales, compared to other normal days and months.
Al-Ismail added that it is very natural for the rate of consumption to rise during the Ramadan season, which in itself is a balancing process between spending and consumption, but today we have a tradition of wrong consumption habits, and what is required here is a balance between the level of income and actual needs, away from extravagance or waste, in the holy month. , which is basically a month of worship.
In light of the current global conditions, and the accompanying events that also put pressure on economies and the pockets of families, Ismail stressed the need to distinguish between necessary and luxury needs, while avoiding extravagance, and not wasting money that comes after long savings in hours and days, as he may travel One of us goes abroad to entertain himself, and he spends a huge amount, and in return he may entertain himself in the State of Qatar with a small amount, especially since our country now has everything, so the issue is not related to Ramadan.
The accounting professor at Qatar University gave the example of two people who receive the same monthly salary, but they have a difference in the standard of living, due to the 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 consumer matters, so adjust financial capabilities. Investing it in real estate and others is necessary in order to adapt to emergency economic crises, after retirement. Investment provides good income, which contributes to improving the quality of life in the future.
Regarding the impact of the holy month on price hikes and inflation, he pointed to the alternatives available in the local markets, and the various options at different prices. They have promotional offers to attract customers, throughout the holy month, which increases the competitiveness of the markets, and the matter in itself is positive in the first place, and I do not see that Ramadan has an effect on raising prices, on the contrary, it contributes to reducing their severity.
As for the businessman, Mr. Ali Hassan Al-Khalaf, Chairman of the Board of Directors of the Qatar Consumer Complexes Company, he said: "Ramadan is the month of mercy in which blessings descend"And it is customary to prepare and prepare for it early, in preparation for the tables, which are sent as meals to others, and the purchasing activity usually increases this month, and the entire market thrives, in light of the prosperity of life, and praise be to God.
He added, spending doubles in Ramadan, and the demand for goods and foodstuffs increases, which is very natural, and purchases vary from one individual to another, and goods are exchanged as gifts and others. In short, the blessed month is an economic season, in which people’s interests and benefits are active.
Regarding prices, he pointed to what the competent authorities are doing in terms of organizing and monitoring the movement of about 500 basic commodities, which contributes to the stability of their prices throughout the days of the holy month, and that their rise may appear to be a phenomenon. "healthy"The increase is considered necessary for the trader, which encourages him to bring more goods, while it is considered normal for the consumer. The more goods, the lower the price, and thus the acquisition of them becomes easier than before.
Regarding the belief of some of the slow movement and weak production in Ramadan, he affirmed that it is not true, especially since everyone is waiting for the month, because the commercial activity in it flourishes and grows, and contributes to lowering prices, due to the large quantities of goods coming to the sales outlets, and everyone’s keenness to market them, instead of piling them up for what After Ramadan, they are destroyed, and this applies to all commodities, including vegetables and fruits, which cannot be stored in the first place, and quickly lose their validity.
The financial analyst, Mr. Walid Al-Fuqaha, believes that the blessed month comes this year in light of exceptional economic conditions, which the world has not witnessed in 40 years, and Ramadan is usually associated with increased consumption and spending, driven by a group of cultural and religious factors, but the current year comes in light of the disruption of financial chains. Supply, which may raise the prices of food and beverages, which are the most important components of the consumer price index.
He added that the focus is on consumer behavior. From a psychological point of view, events lead to the emergence of the phenomenon of emotional contagion "That is, the tendency of people to adopt the feelings and behaviors of those around them"Where consumer behavior is affected by cultural factors, customs, marketing campaigns, advertising, and competitions of merchants and suppliers, which puts pressure on his behavior and changes it significantly, within a short period, compared to the volume of marketing campaigns he is exposed to per day, in light of the development of electronic marketing methods. Which may eventually affect price levels, and lead to an imbalance in supply and demand during the month.
To address this from the point of view of jurists, consumers can take effective steps in managing spending, avoiding waste, setting a budget for purchase, avoiding impulsive buying, and choosing local merchants who offer fair prices and transparent business practices. In terms of control practices, he stressed their importance in maintaining the stability of markets and prices, stressing the importance of developing promotional plans for consumers, and providing programs to engage in more responsible and sustainable consumption patterns, by sharing food, urging community service, and participating in social responsibility programs during the month.
He called for a better understanding of consumer psychology during festive seasons and religious occasions, such as the month of Ramadan, to develop effective strategies and plans that promote sustainable development, increase transparency and accountability in pricing and inventory management, with the need to adopt initiatives that motivate companies that implement responsible practices towards society.
He noted the profits achieved by companies, as their revenues and gains multiply during the holy month, as a result of the increased demand for their products, as Ramadan is an engine for markets and a catalyst for their general performance. From waves of stagnation and deflation, such as the mortgage crisis and others, however, Islamic companies and restaurants continued to operate in them well, accompanied by an increasing demand for halal food, and this is evidence that the holy month brings about qualitative commercial activity in the countries where Muslims live, and not an economic slowdown as some thought.
