Kuwait’s inflation steady at 2.49% in Feb., driven by food and services prices

Kuwait’s inflation steady at 2.49% in Feb., driven by food and services prices
Kuwait’s inflation trends align closely with those seen in other Gulf Cooperation Council countries. Shutterstock
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Updated 25 March 2025
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Kuwait’s inflation steady at 2.49% in Feb., driven by food and services prices

Kuwait’s inflation steady at 2.49% in Feb., driven by food and services prices

RIYADH: Kuwait’s inflation rate remained steady at 2.49 percent in February, with a year-on-year upsurge in services and food prices, according to the latest data from the Central Statistical Bureau. 

The measure was broadly the same level as the 2.5% figure seen in both January and December.

In February, the index reached 135.7, reflecting continued price increases across several major expenditure categories. While the overall inflation rate remains moderate, specific sectors experienced significant annual cost escalations.

The food and beverage sector recorded a 5.23 percent year-on-year increase, followed by the clothing and footwear division, which saw a 4.63 percent surge.

Prices in the miscellaneous goods and services sector increased by 5.46 percent, driven by higher costs for personal goods and services. Healthcare costs also saw a notable increase of 4.08 percent, while the furnishing and household maintenance division rose 3.04 percent.

Kuwait’s inflation trends align closely with those seen in other Gulf Cooperation Council countries. Saudi Arabia’s inflation remained steady at 2 percent year-on-year in February, primarily driven by an 8.5 percent increase in housing rents. In contrast, Oman recorded a milder annual inflation increase of 1 percent in the same month, led by a 6.3 percent rise in the personal goods and miscellaneous services sector.

The Central Statistical Bureau report highlighted the price trends across different expenditure groups and provided insight into the movement of key categories within the consumer price index.

Despite overall inflation remaining relatively stable, Kuwait’s housing services sector showed minimal movement, rising just 0.90 percent annually and remaining unchanged on a month-to-month basis. 

Transport prices declined by 1.19 percent over the past year, though they saw a minor monthly uptick of 0.07 percent. The communication division recorded a slight annual increase of 0.88 percent, while the recreation and culture sector rose by 2.48 percent. 

Education costs saw a small 0.71 percent increase, and the restaurants and hotels sector recorded a 2.03 percent annual rise.

The report showed that the total index, excluding food, rose by 1.93 percent annually, while the total index, excluding housing, increased by 3.13 percent. These figures suggest that inflationary pressure is primarily driven by non-housing-related expenses.

This comes as Kuwait continues to recover in its non-oil sector, supported by easing inflation. Its non-oil exports rose to 23.2 million dinars ($74.9 million) in December, marking a 12.08 percent month-on-month increase, according to data from the Ministry of Commerce and Industry.

In its latest consultation with Kuwait in December, the International Monetary Fund highlighted Kuwait’s non-oil sector recovery amid easing inflation. However, it noted a 1.5 percent gross domestic product contraction in the second quarter of 2024, driven by a 6.8 percent drop in the oil sector.


Oil Updates — crude up but heads for weekly drop under supply pressure

Oil Updates — crude up but heads for weekly drop under supply pressure
Updated 14 sec ago
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Oil Updates — crude up but heads for weekly drop under supply pressure

Oil Updates — crude up but heads for weekly drop under supply pressure

SINGAPORE/NEW YORK: Oil prices rose for a second session on Friday buoyed by potential de-escalation of the US-China trade war, but the market was headed for a weekly decline amid concerns about oversupply.

Brent crude futures gained 43 cents to $66.98 a barrel by 7:33 a.m. Saudi time, on track to fall 1.4 percent for the week.

US West Texas Intermediate crude rose 42 cents to $63.21 a barrel but was set to decline 2.3 percent for the week.

“For today, oil prices are slightly up as the market responds to signs of easing tensions around Trump’s tariffs and a potential shift in the Fed’s policy stance, contributing to a broader market recovery,” said LSEG senior analyst Anh Pham.

“On a weekly basis, however, prices are down as concerns over oversupply from OPEC+ persist, while the demand outlook remains uncertain amid ongoing trade tensions. A stronger US dollar has also added pressure to crude prices,” he added.

US President Donald Trump said on Thursday that trade talks between the US and China were underway, pushing back against Chinese claims that no discussions had taken place.

China is considering exempting some US imports from its 125 percent tariffs and is asking businesses to provide lists of goods that could be eligible in the biggest sign yet of Beijing’s concerns about the economic fallout from the trade war.

China hiked its tariffs after Trump announced higher levies on Chinese goods.

Oil prices tumbled earlier this month after the tariffs sparked concern about global demand and a sell-off in financial markets.

Worries are growing about excess supply. Several OPEC+ members had suggested the group accelerate oil output increases for a second month in June, Reuters reported earlier this week.

The US and Russia are moving in the right direction to end the war in Ukraine, but some specific elements of a deal remain to be agreed, Russian Foreign Minister Sergey Lavrov said in an interview with CBS News.

A halt to Russia’s war in Ukraine and the easing of sanctions could allow more Russian oil to flow to global markets. Russia, a member of the OPEC+ group that includes the Organization of the Petroleum Exporting Countries, is one of the world’s biggest oil producers along with the US and Saudi Arabia.

And Iranian Foreign Minister Abbas Araqchi said on Thursday he was ready to travel to Europe for talks on Tehran’s nuclear program.

Successful talks with Europe and the US would probably result in the lifting of sanctions on Iranian oil exports. Iran is the third-biggest oil producer in OPEC behind Saudi Arabia and Iraq.


Lebanon amends banking secrecy law in key reform

Lebanon amends banking secrecy law in key reform
Updated 24 April 2025
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Lebanon amends banking secrecy law in key reform

Lebanon amends banking secrecy law in key reform

BEIRUT: Lebanon’s parliament on Thursday granted regulatory bodies greater access to bank account information, a key reform demanded by international creditors before the crisis-hit country can unlock bail-out funds.

Prime Minister Nawaf Salam called parliament’s approval of changes to banking secrecy laws “a necessary step toward the desired financial reform that our government promised to achieve, and a fundamental pillar to any recovery plan.”

Adding that the decades-old culture of financial opacity was no longer the boon to investment it once was, Salam said the reform was fundamental to “restoring the rights of depositors and the confidence of citizens and the international community.”

Lebanon was once a booming regional financial hub dubbed the “Switzerland of the Middle East,” with strict banking secrecy laws a key attraction, but the economic crisis that began in 2019 shredded its fiscal reputation.

Since then, authorities have come under local and international pressure to amend the laws amid accusations that influential figures spirited large sums abroad while regular depositors were locked out of their life savings and the local currency’s value plummeted.

Lebanese rights group Legal Agenda said the amendments allow “banking supervisory and regulatory bodies” including the central bank “to request access to all banking information without linking the request to a specific objective.”

These bodies will now be able to audit customer accounts by name, access deposit details and look into possible suspicious activity, the group said.

The changes are among several major reforms Lebanon needs to make to unlock billions of dollars in aid to restart the economy after the collapse, which was widely blamed on mismanagement and corruption.

Finance Minister Yassine Jaber told local broadcaster LBC that the amendments “opened greater space” for Lebanon’s central bank to access accounts.

But “we should not think that with this law, anyone can enter a bank and demand account details” for whoever they like, added Jaber, who is in Washington with other senior officials for meetings with the IMF and the World Bank.

Alain Aoun, a member of parliament’s finance committee, said the move followed 2022 banking secrecy amendments that the IMF had viewed as “insufficient.”

Now, regulatory bodies will be able to request “the information they want” on bank accounts, he said.

The cabinet, which approved the amendment earlier this month, said it would apply retroactively for 10 years from the date of request, meaning it would cover the start of the economic crisis.


IMF to help Syria reintegrate into global economy, says Georgieva

IMF to help Syria reintegrate into global economy, says Georgieva
Updated 24 April 2025
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IMF to help Syria reintegrate into global economy, says Georgieva

IMF to help Syria reintegrate into global economy, says Georgieva

WASHINGTON: The International Monetary Fund plans to work with Syria to help it reintegrate into the global economy, IMF chief Kristalina Georgieva said on Thursday, citing a meeting on the war-scarred nation held this week.

Georgieva told reporters that Syria’s central bank governor and finance minister attended the Spring Meetings of the IMF and World Bank this week for the first time in over 20 years.

“Our intention is to, first and foremost, help them rebuild institutions so they can plug themselves in the world economy,” she said.

Officials from the IMF and World Bank met with Syrian officials and other finance ministers and key stakeholders to discuss the country’s reconstruction on the sidelines of the meetings in Washington.

The high-level Syrian government delegation’s Washington trip marked the first US visit by Syria’s new authorities since former President Bashar Al-Assad was toppled in December.

Much of Syria’s infrastructure has been left in ruins by nearly 14 years of war sparked by the government authorities’ deadly crackdown on protests against Al-Assad.

The government that took over after Al-Assad was ousted has sought to rebuild Syria’s ties in the region and further afield and to win support for reconstruction efforts.

But tough US sanctions imposed during Al-Assad’s rule remain in place.

In January, the US issued a six-month exemption for some sanctions to encourage humanitarian aid, but this has had limited effect.

Reuters reported in February that efforts to bring in foreign financing to pay public sector salaries had been hampered by uncertainty over whether this could breach US sanctions.


Closing Bell: TASI closes in green at 11,764  

Closing Bell: TASI closes in green at 11,764  
Updated 24 April 2025
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Closing Bell: TASI closes in green at 11,764  

Closing Bell: TASI closes in green at 11,764  

RIYADH: Saudi Arabia’s Tadawul All Share Index concluded Thursday’s trading session at 11,764.39 points, marking an increase of 83.28 points or 0.71 percent. 

The total trading turnover of the benchmark index was SR6.95 billion ($1.85 billion), as 173 stocks advanced, while 67 retreated.  

The MSCI Tadawul Index also surged by 11.97 points, or 0.80 percent, to close at 1,500.71.  

The Kingdom’s parallel market, Nomu also increased, gaining 135.49 points, or 0.48 percent, to close at 28,598.60 points. This comes as 37 of the listed stocks advanced while as many as 42 retreated. 

The main index’s top performer, Saudi Paper Manufacturing Co., recorded a 9.97 percent increase in its share price, closing at SR69.50. 

Other notable gainers included Derayah Financial Co., which rose 8.22 percent to SR30.95, while Al-Baha Investment and Development Co. saw its share price climb 6.34 percent to SR3.52. 

Saudi Arabian Mining Co. also recorded a positive trajectory, with its share price rising 5.74 percent to SR47.00. Saudi Reinsurance Co. posted similar gains, increasing 5.29 percent to close at SR43.75. 

Mulkia Gulf Real Estate REIT recorded the steepest decline on TASI, with its share price slipping 4.71 percent to close at SR5.26.  

Musharaka REIT Fund followed with a 3.51 percent drop to SR4.67. Saudi Cable Co. also saw a notable decline of 3.20 percent to settle at SR139.    

On the parallel market, Hedab Alkhaleej Trading Co. was the top gainer, with its share price surging by 9.25 percent to SR44.90. 

Other top gainers on Nomu included Al Mohafaza Co. for Education, which surged 7.79 percent, or SR1.80, to close at SR24.90, and Shalfa Facilities Management Co., which rose 7.43 percent, or SR5.50, to reach SR79.50.  

Aqaseem Factory for Chemicals and Plastics Co. and Jana Medical Co. were the other top gainers on the parallel market. 

Osool and Bakheet Investment Co. posted the largest decline on Nomu, with its share price falling 8.11 percent to SR34. 

Altharwah Albashariyyah Co. fell 7.86 percent, or SR3.85, to close at SR45.15, while Meyar Co. declined 7.32 percent, or SR4.80, to settle at SR60.80 — making them among the top decliners on the parallel market. 


Saudi Arabia launches major dairy cluster in Al-Kharj

Saudi Arabia launches major dairy cluster in Al-Kharj
Updated 24 April 2025
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Saudi Arabia launches major dairy cluster in Al-Kharj

Saudi Arabia launches major dairy cluster in Al-Kharj

JEDDAH: Saudi Arabia has launched a major dairy industrial cluster in Al-Kharj, reinforcing its ambition to become the region’s leading hub for dairy production and food manufacturing.

Announced during the Saudi Dairy Forum in Al-Kharj — located approximately 90 km southeast of Riyadh — the initiative is a strategic component of the Kingdom’s broader National Industrial Strategy. The cluster spans 1 million sq. m and is equipped with advanced infrastructure tailored to support dairy manufacturing and related industries.

Minister of Industry and Mineral Resources Bandar Alkhorayef, speaking at the forum, underscored the project’s role in attracting high-value investments and enhancing the Kingdom’s food security.

He revealed that the dairy sector reached a market size of SR22 billion ($5.87 billion) in 2024, with exports totaling SR4.8 billion and imports at SR8.9 billion.

According to the IMARC Group, the market is projected to grow to $8.4 billion by 2033, with a compound annual growth rate of 3.8 percent from 2025 to 2033.

“This project aligns with the goals of the National Industrial Strategy to position Saudi Arabia as a regional hub for food industries,” Alkhorayef stated, as reported by the Saudi Press Agency.

He said it will offer investors access to fully developed industrial land, modern facilities, storage solutions, and a comprehensive support system.

In a statement on social media, Alkhorayef expressed gratitude to Riyadh Governor Prince Faisal bin Bandar for his patronage of the forum and for inaugurating the country’s first dairy industrial cluster in Al-Kharj Industrial City.

The minister noted that Saudi Arabia has achieved 129 percent self-sufficiency in dairy production, underscoring the sector’s resilience and capacity for growth. Al-Kharj alone contributes over 70 percent of the Kingdom’s total dairy output, supplying both local and regional markets.

The new cluster is part of a broader initiative by the Saudi Authority for Industrial Cities and Technology Zones to establish specialized food industry hubs throughout the Kingdom. The project is expected to foster synergies across the value chain, including animal feed, food additives, packaging, and machinery manufacturing.

The Saudi Dairy Forum, hosted by the Al-Kharj Chamber in cooperation with the National Industrial Development Center, brought together industry leaders, policymakers, and agricultural stakeholders. It was held under the patronage of Riyadh Gov, Prince Faisal bin Bandar and attended by Al-Kharj Gov. Prince Fahd bin Mohammed bin Saad bin Abdulaziz.

As Saudi Arabia accelerates its push to diversify the economy and achieve food security, the Al-Kharj dairy cluster stands as a milestone in the Kingdom’s industrial and agricultural evolution.