
A statistical report shows Gulf inflation remaining below 2%, and the TASI index closes higher, supported by leading stocks
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The Gulf countries maintained low inflation compared to global rates during the year 2025. Saudi stocks recorded an increase in Sunday’s session, supported by the energy and banking sectors.
The Gulf Cooperation Council countries maintained low and stable levels of inflation during the year 2025, despite the general rate rising slightly to 1.8 percent, compared to 1.6 percent in 2024, to remain below the 2 percent level for the second year in a row, in a performance that reflects the continued containment of price pressures in the region’s economies.
A statistical report issued by the Statistical Center for the Cooperation Council for the Arab States of the Gulf showed that Gulf inflation remained among the lowest in the world during the past year, with a clear difference from the global rate of 4.2 percent, as well as from the rate of emerging and developing economies of 5.3 percent.
According to the report, inflation in the GCC countries was at relatively similar levels, while price pressures were mainly concentrated in the housing and miscellaneous goods and services groups, which together contributed about 73 percent of the general Gulf inflation rate during 2025.
The development of Gulf inflation rates in recent years demonstrates the ability of the region's economies to contain the waves of rising prices witnessed by the global economy. After inflation reached 1.5 percent in 2020, it rose to 2.4 percent in 2021, then recorded a peak of 3.2 percent in 2022, before beginning a downward path to 2.3 percent in 2023 and 1.6 percent in 2024.
In 2025, the rate rose slightly to 1.8 percent, remaining at a low level compared to rates recorded in major economies, indicating continued relative stability of prices in the region despite the global inflationary environment.
The report indicated that the Gulf inflation rate in 2025 was below the inflation rates recorded in emerging and developing economies and the global economy, and was also lower than the rates of a number of major economies.
Emerging and developing economies recorded an inflation rate of 5.3 percent, compared to 4.2 percent globally, while the rate reached 3.2 percent in Japan, 2.6 percent in the United States, 2.5 percent in both the European Union and advanced economies, and 2.1 percent in the euro area.
Among the most prominent trading partners of the GCC countries, Brazil topped the inflation rates with 5 percent, followed by the United Kingdom with 3.9 percent, then Japan with 3.2 percent, India with 2.8 percent, and the United States with 2.6 percent.
Germany recorded 2.2 percent, South Korea 2.1 percent, Italy 1.5 percent, and France 0.9 percent, while China recorded an inflation rate of zero percent, which is the lowest among these economies.
The report concluded that the great convergence in inflation rates between the GCC countries, and their stability at levels of less than 2 percent, provides a favorable environment for enhancing the path of Gulf economic and monetary integration.
Saudi stocks ended Sunday’s trading on a higher note, supported by gains in leading stocks, led by “Saudi Aramco” and “Al Rajhi Bank,” amid trades worth about 3 billion riyals.
The main market index, TASI, ended Sunday's session up by 0.3 percent, closing at 11,069 points, adding 36 points, amid trades with a total value of about 3 billion riyals, equivalent to 800 million dollars.
The shares of “Saudi Aramco” and “Al Rajhi Bank” rose by less than 1 percent, at 26 riyals and 66.80 riyals, respectively.
“Refineries” stock topped the rising companies by 7 percent, followed by “Banan” stock by more than 4 percent.
The shares of “Anaam Holding”, “Boan”, “Food Development”, “Wafra”, “SASCO” and “BCI” also rose by rates ranging between 2 and 3 percent.
SABIC shares rose by 1 percent to 49.94 riyals, after the company announced that Al-Razi Company had obtained approval to allocate feedstock to establish a methanol production plant.
On the other hand, “Ladon” shares fell by 6 percent to 2.07 riyals, while “Comprehensive Path” shares fell by 2 percent.
Regarding real estate traded funds, the “Riyad REIT” fund closed at 4.73 riyals, declining by 4 percent, following the end of eligibility for cash dividends to shareholders.

The Saudi Council of Economic and Development Affairs reviewed the performance of Vision 2030 programs, confirming that inflation stabilized at 1.8% in July 2026. A GCC statistical report also indicated that inflation in member states remained among the lowest globally during 2025, with prices stabilizing despite international fluctuations.

The Saudi Council of Economic and Development Affairs confirmed the continued progress of Vision 2030 programs, noting the stability of the inflation rate at 1.8% in July 2026, and reviewing the progress of privatization projects and the transformation of the health sector, in conjunction with the rise in the Saudi Stock Market Index (TASI).

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