What Does Lower Inflation Mean for Saudi Arabia?

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00:00Another number that we quite often talk about is inflation.

00:03Inflation now down to its lowest level since December 2024.

00:08What do you read into that?

00:11Yes, so we saw the figure come out just a couple of days ago.

00:14We saw inflation of around 1.9% annualised compared to this time last year.

00:19It was the lowest figure since December 2024.

00:23In fact, we should talk more about how much this also helps the economy

00:26because you have low inflation essentially over a sustainable period.

00:31Everyday people in Saudi Arabia have more disposable income,

00:34so more income and money to spend on the economy.

00:37But particularly, I would also highlight as part of the 2030 vision

00:40about making Saudi Arabia more of a hub, not just for events,

00:43but also for businesses coming into Saudi Arabia.

00:46If you see lower inflation, it becomes more enticing and more encouraging

00:49to set up investments and businesses for the longer term.

00:53And I think we also should highlight the impact that the weaker dollar,

00:57the U.S. currency, has had on Saudi Arabia this year as well.

01:00Because obviously, if you're coming from overseas,

01:02you'll find in your visits to the GCC countries,

01:04those currencies that are pegged to the dollar becomes less expensive

01:08and also less expensive to set up businesses,

01:11whether it's manufacturing hubs, headquarters for some of these mainstream companies

01:14and so forth.

01:15So all of that inflation is also a positive impact

01:18on top of the government measures that are taking place as part of 2030 anyway.