Arab Press

بالشعب و للشعب
Sunday, Jul 06, 2025

Inflation hits Dubai's karak tea, a beloved national staple

Inflation hits Dubai's karak tea, a beloved national staple

From Mustafa Moeen’s spot behind the counter, he sees the many faces of Dubai. They come — tired, hungry, stressed out — for a respite and a cup of karak.
Laborers stop on the way to work. Cab drivers linger after long shifts. Emiratis cruise by on midnight joyrides. A cup of milky sweet tea to ease the burden of the day, customers say, long priced at just 1 dirham, a bit less than 30 U.S. cents.

But now, as supply chain shortages and Russia’s war on Ukraine lead to price spikes on everything from breakfast sandwiches in Manhattan to chicken tinga in Mexico, Dubai tea sellers are bumping up prices of what’s informally considered the national drink of the United Arab Emirates. Moeen says he had no choice but to raise the price to 1.50 dirhams, or just over 40 cents.

“Everything got more expensive for us — milk, sugar, tea bags. Even the price of cups doubled,” Moeen said from the one-room storefront in Satwa, a neighborhood bustling with South Asian workers on rickety bicycles that can feel a world away from Dubai’s flashy skyscrapers. “We also have to survive.”

For nearly two decades, karak — an elixir of sugar, dehydrated milk and cardamom-infused tea — has largely been the same price, just one nickel-plated steel dirham coin. A dirham is worth 100 fils.

“It’s not about the 50 fils. They are making small, small changes,” said Zeeshan Razak, an accountant from Kerala, India, sipping tea with his colleague. “We are concerned about what it means.”

It was one of the rare treats that a dirham could buy in Dubai, which draws both the world’s richest people and legions of low-paid migrant workers.

“It’s part of its brand that it costs 1 dirham,” said Abdulla Moaswes, a Palestinian karak aficionado raised in the UAE who’s known for his scholarship on the tea. “People stockpile the coins so they always have one on hand.”

Oil-rich Gulf Arab governments have reaped a windfall since the world’s economic recovery from COVID-19 and Moscow’s invasion of Ukraine boosted global energy prices.

But rising inflation has taken a toll. The price of another sweet staple in Dubai long worth 1 dirham, the McDonald’s soft-serve ice cream cone, recently spiked to 2 dirhams. McDonald’s UAE franchisee said it made the “difficult decision” due to a spike in “operating, equipment, manpower and the raw material costs.”

Residents are feeling the pinch.

“In the five years I’ve been here this is the worst time. Rent, food, petrol — I can’t catch up,” said Arslan, an app-hired chauffeur from Pakistan’s Punjab province who drinks four cups of caffeinated karak daily to fuel his 12-hour night shift. “There’s no way to cut back.”

He gave only his first name for fear of reprisals, saying his landlord is threatening to call the police because he can’t make rent.

Annual inflation in Dubai accelerated to a record 7.1% last month, with consumer prices growing fastest in food, transportation and entertainment, according to the emirate’s statistics authority. Gas prices shot up nearly 80% from January to July — a shock for a wealthy petrostate that has long considered cheap fuel a birthright.

To protect its citizens from cost pressures, the UAE announced it would nearly double the welfare budget for low-income Emiratis.

But many of the country’s poorest people aren’t citizens eligible for stipends, but migrant laborers from India, Pakistan and elsewhere toiling long hours for slim salaries.

“Inflation is an issue in the country, and it’s hitting segments of the expatriate population already operating on a shoestring budget,” said Robert Mogielnicki, a senior scholar at the Arab Gulf States Institute in Washington. “Small changes in prices ... can have a big impact.”

Many are reminded of the impact each day — when they go for karak. At night, the empty lots and street corners of old Dubai fill with workers gossiping and scrolling through their phones over steaming cups.

“I’ll pay 1.50, fine, but it all adds up,” said Anayeg Ula, a 29-year-old food delivery rider from Bangladesh, taking a karak break beside his bike. “I came here to make money, not spend it.”

Though modest in size, a cup of karak contains volumes in terms of the UAE’s history.

The oil boom of the 1970s brought millions of migrants to the Gulf Arab states, along with their tea preferences. Indians and Pakistanis building up the coastal emirates craved masala chai, but lacked the money to buy fresh milk and the time to slow-cook tea over a coal fire. They needed quick chai at the cheap that could be stored and served in vast quantities at construction sites.

“Karak was born from necessity,” said Moaswes, the karak scholar. “It’s what the economic situation allowed for decades ago.”

The tea exploded in popularity over the years, becoming a social ritual — as well as an indispensable routine.

The trend spread to Emiratis, who traditionally brew their Arabic tea ink-black but now claim the milky chai as part of their heritage. Dubai’s tourism authority promotes top karak spots to visitors.

“It’s nostalgic for me. That was breakfast on a daily basis, roaming around in our cars,” recalls Ahmed Kazim, an Emirati who helped found a popular upscale karak shop, Project Chaiwala. “It’s the UAE culture. You’ll see a guy with a bicycle pull up next to a Lamborghini.”

The price of karak was 50 fils for a quarter-century, rising to 1 dirham in 2004 as Dubai rushed to build its booming desert skyline.

Some fear that if prices continue to climb, the staple may be lost to the working class who created it.

Shashank Upadhyay, a bakery owner in Dubai’s old Karama neighborhood, tried to sell karak for 2 dirhams earlier this year. But he swiftly backpedaled after seeing his customers “disturbed.”

“In this area, chai is too important,” Upadhyay said. “If we keep raising it, it will become something for people who go to high-end restaurants. But it’s for local working people, like us.”
Newsletter

Related Articles

Arab Press
0:00
0:00
Close
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
AI Raises Alarms Over Long-Term Job Security
Russia Formally Recognizes Taliban Government in Afghanistan
Saudi Arabia Maintains Ties with Iran Despite Israel Conflict
Mediators Edge Closer to Israel-Hamas Ceasefire Agreement
Germany Seeks Taliban Deal to Deport Afghan Migrants
Emirates Airline Expands Market Share with New $20 Million Campaign
Robots Compete in Football Tournament in China Amid Injuries
China Unveils Miniature Insect-Like Surveillance Drone
Marc Marquez Claims Victory at Dutch Grand Prix Amidst Family Misfortune
Iran Executes Alleged Israeli Spies and Arrests Hundreds Amid Post-War Crackdown
Trump Asserts Readiness for Further Strikes on Iran Amid Nuclear Tensions
Qatar Airways Clears Backlog of Passengers Following Missile Threats
Iran's Parliament Votes to Suspend Cooperation with Nuclear Watchdog
Trump Announces Upcoming US-Iran Meeting Amid Controversial Airstrikes
Trump Moves to Reshape Middle East Following Israel-Iran Conflict
NATO Leaders Endorse Plan for Increased Defence Spending
U.S. Crude Oil Prices Drop Below $65 Amid Market Volatility
“You Have 12 Hours to Flee”: Israeli Threat Campaign Targets Surviving Iranian Officials
Oman Set to Introduce Personal Income Tax, First in Gulf
Germany and Italy Under Pressure to Repatriate $245bn of Gold from US Vaults
Trump Praises Iran’s ‘Very Weak’ Response After U.S. Strikes and Presses Israel to Pursue Peace
WATCH: Israeli forces show the aftermath of a massive airstrike at Iran's Isfahan nuclear site
We have new information and breaking details to share about what is shaping up to be a historic air campaign tonight
Six Massive Bombs Dropped on Fordow; Trump: 'A Historic Moment for the U.S., Israel, and the World'
Fordow: Deeply Buried Iranian Enrichment Site in U.S.–Israel Crosshairs
United States Conducts Precision Strikes on Iran’s Nuclear Sites
US strikes Iran nuclear sites, Trump says
Pakistan to nominate Trump for Nobel Peace Prize.
Israel Confirms Assassination of Quds Force Commander in Tehran
16 Billion Login Credentials Leaked in Unprecedented Cybersecurity Breach
Senate hearing on who was 'really running' Biden White House kicks off
G7 Leaders Fail to Reach Consensus on Key Global Issues
Mass exodus in Tehran as millions try to flee following Trump’s evacuation order
Iranian Military Officers Reportedly Seek Contact with Reza Pahlavi, Signal Intent to Defect
China's Iranian Oil Imports Face Disruption Amid Escalating Middle East Tensions
Trump Demands Iran's Unconditional Surrender Amid Escalating Conflict
Israeli Airstrike Targets Iranian State TV in Central Tehran
President Trump is leaving the G7 summit early and has ordered the National Security Council to the Situation Room
Netanyahu Signals Potential Regime Change in Iran
Analysts Warn Iran May Resort to Unconventional Warfare
Iranian Regime Faces Existential Threat Amid Conflict
Energy Infrastructure Becomes War Zone in Middle East
Iran Conducts Ballistic Missile Launches Amid Heightened Tensions with Israel
Iran Signals Openness to Nuclear Negotiations Amid Ongoing Regional Tensions
Shock Within Iran’s Leadership: Khamenei’s Failed Plan to Launch 1,000 Missiles Against Israel
UK Deploys Jets to Middle East Amid Rising Tensions
Exiled Iranian Prince Reza Pahlavi Urges Overthrow of Khamenei Regime
Wreck of $17 Billion San José Galleon Identified Off Colombia After 300 Years
Iran Launches Extensive Missile Attack on Israel Following Israeli Strikes on Nuclear Sites
×