Counterfeit bags are big business for Dubai traders
Business is brisk in the shady alleys of certain Dubai districts, where shop workers sell counterfeit wares to tourists and residents in search of a designer knock-off.
An invitation to view ‘genuine fakes’ - copies of luxury goods - is difficult to dodge, despite the real thing being readily available in the emirate’s upmarket malls. Tourists are targeted in Dubai’s Gold Souk, while residents and visitors in the know are more likely to go to Karama for cheap knock-offs. In both areas, hidden behind and above the regular shops are stores packed full of bags, belts, sunglasses, T-shirts, watches, shoes and even fake fragrances.
Yet buyers are often unaware that their prized designer copy is funding terrorism and organised crime around the world. A tourist who had just stepped off a cruise liner to spend two days in Dubai told 7DAYS: “My wife and I avoid fakes, because we know the money goes to hardcore gangsters.
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“We went for a look at some of the shops around Dubai Museum. We couldn’t believe it when one shopkeeper on a main street asked if we wanted ‘special’ T-shirts. He opened a lid in his counter to reveal hundreds of designer rip-offs. Dubai is famous for its designer stores, so we were surprised to realise there’s such a huge market in counterfeits.”
A visit to the Gold Souk one weekend confirmed that illegal business is brisk. Within five minutes of arriving, we were approached by six street touts aggressively demanding we look at their “bags, watches, T-shirts, shoes… Prada, Gucci, Chanel, Hermes”. We were taken down an alleyway by a tout, who led us to his boss, Sanjay, two floors up in a building. Like most ‘fake’ shops, Sanjay’s domain consisted of old apartments converted into an Aladdin’s cave of copied luxury goods.
Sanjay, who rules over the main sales area, explained: “All these bags are between Dhs150 and Dhs400. There is another room, with the newest releases, next door. In there you pay between Dhs800 and Dhs1,200.” Asked which bags were most popular, Sanjay said: “Helly Hansen, Gucci and Michael Kors are popular. The British ladies go for Burberry, Louis Vuitton or Mulberry. Customers want Rolex watches, the automatic ones - they are better quality. Other nationalities go for different brands. The Arabic ladies usually shop next door because they want the latest releases.”
Sanjay then tried to sell a plastic wallet branded Yves Saint Laurent. He started the bidding at Dhs200 - the lowest he would go was Dhs70. The real thing is made of high-quality leather. Next was the shoes department. There, a pair of men’s suede Lacoste shoes, which cost Dhs750 for the real thing, were offered for Dhs600.
The danger of being caught by the authorities did not seem to trouble Sanjay and his friends. He shrugged: “I do not think that will happen here.” He laughed when asked why.
The latest figures for counterfeiting show that an estimated seven per cent of trade across the globe involves cheap, illegal copies of high-end goods. They are illegal because they are passed off as coming from a company that has built a reputation for quality, design and safety.
The business has grown so large, however, that in China - the counterfeit capital of the world - whole cars are being copied, with Porsche and Ferrari the victims.
Fake computer components are also big business, with space agency NASA reportedly being duped into buying some. Tobacco and alcohol companies even fall foul of the gangs - one seizure of cigarettes in the UK unearthed products containing human waste and dangerous chemicals. Factories that manufacture counterfeit goods are usually located in developing countries. They are so prominent in Thailand that there’s a Museum of Counterfeit Goods in Bangkok.
The Counterfeiting Intelligence Bureau, formed in 1985 and based in London, has undertaken more than 600 investigations in 35 countries. Its assistant director, Max Vetter, told 7DAYS: “There are examples of terrorists using counterfeiting to finance their activities. Counterfeiting always involves organised criminals and corruption.
“Dubai is a big trade route, with goods coming from China and being sent on to Europe. This status makes it susceptible to counterfeiting. In fact, in 2008 the Global Congress on Combating Counterfeiting and Piracy was held in Dubai because there is so much activity there.”
As well as funding criminal activity, many fakes can be dangerous for consumers. Vetter said: “We come across a lot of pharmaceutical and electrical goods. Apple has just launched an investigation into counterfeit telephone chargers after a lady died in China using one.”
Dubai Police put out a message on social media recently, warning that fake goods endanger society and the economy. It advised consumers to report counterfeiters by calling 04 203 6341.
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