Finding the fakes

This pile of fake pumps was seized after Sharjah authorities busted the dealer.

“Firstly, we monitor the market and seize any LPG cylinders flooding in through a variety of unauthorised distribution channels; secondly, we regularly check the cylinders in the market and exchange the defective and expired ones; and thirdly, we launch awareness campaigns to raise public awareness on the safe use of LPG cylinders, and to educate the public to reject defective and expired cylinders,” he said.

Black market opportunities arise when providers cannot fulfil orders at the official market price. The size and speed of growth seen in the last decade, in places like Dubai, increases the need for quick and cheap products that can be sold on.

Even in markets that have seen slower growth, such as Oman, a deficiency of supply leaves holes for rogue traders, especially when they are one step ahead of authority action to balance the market.

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From 2007 to 2008, the country had suffered a shortage of cement as the number of developments increased. In 2008 two Asians were arrested for selling counterfeit cement above market rates in the Wilayat of Ibri in the Sultanate.

It was less than ten days after the Chamber of Commerce and Industry announced it was considering a revision to its import duty, to help reduce the local cost.

Saudi Arabia has not been immune to fake goods either. Ahmed Al-Dedy, a manager at Exova Company in Saudi Arabia, revealed in a whitepaper earlier this month that Saudi Arabia loses more than SR41billion from commercial fraud. In the first half of 2010, eight million counterfeit items were confiscated, he found.

In the UAE, Gomes says it is important that consultants and contractors are aware of the proliferation of fake merchandise, but, more than that, he says there needs to be a better regulatory framework to act as both protectorate and deterrent.

An AED5,000 flat fine for a rogue trader is too low and needs to be proportionate, he adds, and traders found guilty should have their licenses revoked.

“A trader may have sold ten containers and may be losing a small amount of money [in fines],” he adds. “[The authorities] are on the right track, but not much is done to safeguard the companies that are investing millions into Dubai’s economy.”