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Dubai Recovers Activity Amid Rising Living Costs and Suspended Air China Flights

Commercial and road activity has rebounded in Dubai despite mounting regional geopolitical friction, according to a report by China Daily. However, businesses and residents face climbing costs driven by a 16 percent year-on-year fuel price increase and doubled maritime freight and insurance fees. In addition, Air China has confirmed that its flights to the UAE will remain suspended until December 31.

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Illustration: Heavy evening commuter traffic with dense red taillights stretching along a wide multi-lane highway in Dubai, illuminated modern office
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Daily life and traffic congestion have returned to normal rhythms across Dubai, including major commercial and expatriate hubs such as International City, according to an on-the-ground report by China Daily's Dubai bureau.

Economic pressures are nevertheless escalating for residents and businesses. On September 30, UAE authorities announced retail fuel prices for October, representing a 16 percent year-on-year increase. The announcement prompted long queues at filling stations across the country as motorists sought to refuel before the price adjustment took effect.

Local retailers reported that logistics disruptions across the Strait of Hormuz have significantly impacted operational costs. Shipping lines have raised freight rates and war-risk surcharges, nearly doubling overall ocean freight and cargo insurance expenses. While retailers have attempted to hold basic staple prices steady for items such as rice, flour, and cooking oil, broader retail shelf prices have absorbed the logistical overhead.

Cross-border connectivity between China and the UAE also faces headwinds. Air China recently confirmed that its flight services to the UAE will remain suspended through December 31 amid ongoing Middle East tensions.

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