The annual inflation rate for the UAE, Saudi Arabia and Kuwait has witnessed changes during 2024.
But despite the regional and global fluctuations, the rates remain stable with some developments.
UAE’s Annual Inflation Rate Drops to 1.2% in November
The annual inflation rate in the UAE declined to 1.2% in November, down from 1.68% during the same period last year.
This is according to a report released by the Federal Competitiveness and Statistics Center.
However, inflation slightly increased compared to October.
The report indicated that the Consumer Price Index (CPI) rose to 108.8 points in November, compared to 107.4 points in the same month last year.
But it slightly decreased from 108.4 points recorded in October.
Inflation Allowance Program
The UAE launched the Inflation Allowance Program in 2022.
This program is part of a comprehensive social support system to ease the impact of global inflation on eligible Emirati families.
It provides temporary and adjustable financial aid, distributed monthly, to help citizens cope with the rising cost of living.
However, the UAE introduced a 5% value-added tax (VAT) on goods and services at the beginning of 2018.
Saudi Arabia
While Saudi Arabia average annual inflation rate was 1.7%, as reported by the General Authority for Statistics 2024.
Throughout the year, monthly inflation rates remained relatively stable, fluctuating between 1.5% and 2%.
But in October, the annual inflation rate increased to 1.9%.
This was due to a significant rise in housing rents, which soared by 11.6%.
The Emirates Red Crescent Authority launched its annual project to distribute Iftar meals in the city of Mukalla in Hadhramaut Governorate. This comes within the plan of humanitarian and charitable relief programs provided by the UAE to its brothers in Yemen. pic.twitter.com/HsKtmFBvgw
— UAE Voice (@uae_voiceeng) March 3, 2025
In November, the rate edged up to 2%, driven by a 10.8% rise in housing rents.
And by December, the inflation rate slightly decreased to 1.9%, with housing rents still contributing significantly to the overall inflation.
Saudi Arabia’s inflation remained low compared to global levels.
With the International Monetary Fund expecting it to stay around 2% in the medium term.
Kuwait
Kuwait’s annual inflation rate stood at 2.5%, unchanged from December 2024.
Accordingly, the country has maintained its highest level since September 2024.
This stability follows a gradual decline from 3.64% in 2023 and 3.98% in 2022.
Statista declared a 3% inflation rate for Kuwait in 2024, with a gradual decrease to 1.71% by 2029.
