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Inflation

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Is Gulf luxury sector immune from inflation?

Is Gulf luxury sector immune from inflation?

The Covid-19 pandemic and the global inflation rates have taken a toll on the retail sector, particularly the luxury goods market, where its impact on countries, categories, and brands in the GCC region has varied.

However, just because there is inflation doesn’t mean that people aren’t spending, but they are spending differently. The that sales are expected to rise from US$ 317 bn in 2021 to between US$ 336 bn and US$ 347.5 bn in 2022.

Region needs tourism to beat inflation

Region needs tourism to beat inflation

One of the most significant industries on which Gulf countries — particularly the United Arab Emirates and Saudi Arabia — focus nowadays to move their economic wheels is tourism

Despite the global closures and economic crisis, the tourism sector in the Gulf region fared well in 2021 due to several factors such as the easing of restrictions and government support.

Inflation pinches GCC consumers’ pockets

Inflation pinches GCC consumers’ pockets

Inflation has been rising across the sectors. Cost of transportation in the region increased by 8 percent, culture and entertainment 7%, education 4%, food and beverage 2.1% , restaurants and hotels 1.6%.

The wave of inflation continues to put pressure on consumers not just in the United States, Europe, and the Arab world, but also in the Gulf region. Economies in the Middle East are exposed to the global price fluctuations because of heavy import dependence. Localized factors like rental deflation and short-term labor constraints in the…

Rising inflation hobbles SMEs in Gulf countries

Rising inflation hobbles SMEs in Gulf countries

Increased inflation rates mean a rise in the supply chain, labor costs, and basic living costs, which result in more challenges for SMEs. It's time that large businesses support the smaller ones to survive in the market.

Diversifying, and strengthening local production structures is the most appropriate way to reduce inflation. Entrepreneurs and start-up companies may come forward to help their respective governments in finding more sustainable development solutions. The menace of inflation cannot be managed alone.

Global and regional trade: The economic booster for GCC govts

Global and regional trade: The economic booster for GCC govts

Arab economies, which have been significantly dented by high inflation in the last few years, are likely to witness high growth on the back rise in the prices of crude oil.

The squeeze on real incomes within the region due to higher inflation may depress regional trade flows. The situation may worsen further if the global central banks’ attempts to control rising consumer prices, which will ultimately dampen global economic activity.

How GCC nations can tame rising inflation?

How GCC nations can tame rising inflation?

Amid the anxieties associated with high inflation, experts believe that consumer price rise is still 'not intensive' and can be tamed by adopting appropriate policies.

Investing in inflation-protected bonds and gold may provide some hedge against consumer price rise. Putting money into the real estate sector is also a safe bet, believe some regional experts.

Is GCC inflation getting out of control?

Is GCC inflation getting out of control?

Covid-19, particularly the Omicron variant, along with increasing import prices, partly due to a weakening dollar, lead the key factors that affect the consumer prices in the region.

Central bank action and risks to financial stability must be carefully monitored and managed as loose monetary policy is unwound. A sudden rise could cause a shock to the Gulf economies leading to a recession.

Why and how high is inflation in the region?

Why and how high is inflation in the region?

Inflation rates may place new constraints on Gulf growth plans at a time when the governments of Saudi Arabia and the UAE are pursuing initiatives for social and economic reforms.

The main reason for high inflation rates in the GCC is a rebound in prices in the sectors that were hit the hardest during the Covid-19 crisis. The global energy prices are also exerting significant pressure on the region.

Look: How Gulf inflation evolves in 25 years

Look: How Gulf inflation evolves in 25 years

As the world is trying to cope with the rising consumer prices, a sudden increase in the costs of imported raw materials and consumables has led to rise in inflation in the GCC countries too.

GCC countries, like other nations across the world, are exposed to many economic challenges and risks such as higher prices of basic goods and services, introduction of new taxes, etc.

Explained: Inflation and its impact on GCC

Explained: Inflation and its impact on GCC

Thanks to a number of elements that are causing food prices to rise across the globe, Gulf economies, which import most of their provisions, may continue to experience high levels of inflation.

It’s time to review how inflation, which measures the overall increase in prices or the increase in the cost of living in a country, is affecting the region? TRENDS discusses the issue with some of the experts.