Although the global economy is in a poor way that doesn't mean that prices are going down - in fact in most countries inflation rates are sky high - certain things like clothing may go down but most commodities like oil and gas, electricity and food is going up. I don't know what it's like in the US or the UAE but in the UK inflation is around 5%.

In the countries where it really matters e.g. Iran and India it's up at around 10%!

This doesn't justify some of the price increases (some rugs from Afghanistan I've seen double in price in little over 2 years!) but it goes some way to explain it. Wool prices have greatly increased in recent times and the producing countries' cost of living and therefore wages are on the rise. The rising cost of oil, artificially inflated or not, adds to the shipping cost which can be a significant addition. I'm not certain but I'm sure I've heard Afghanistan have introduced a form of sales tax which obviously also increases cost. A few years ago when buying rugs I would have to add around 30% to the cost of a rug to work out the real cost to get it to my door and pay the import duty and vat, now it's 40% and often higher.


You are correct in saying buying in Dubai isn't the best idea; they don't make them in Dubai, it's a rich place, just because it's closer to the source doesn't mean you are going to get a bargain. You probably didn't pay too much for the previous rug but I don't think anyone going to the UAE can really expect to get a bargain, you would probably get it for the same price in the US. The same goes for Turkey, most places tourists will find the rugs are tourist traps and you can't expect to get a great price.


However, even after all the price factors I don't think the new deal is a good one, especially if it's single knot and not double.