Video|24 April 2025

Is GCC Inflation Finally Taking a Breather?

Scott Livermore
Scott Livermore
Chief Economist & Managing Director
Is GCC Inflation Finally Taking a Breather?


Kuwait’s inflation rate eased to 2.4% in March, while Oman’s inflation dropped to 0.5% from 1%, driven by weaker food and non-alcoholic beverage prices. This also contributed to a decline in inflation in Dubai, with the headline rate easing to 2.8% in March. Inflation across the GCC is expected to remain contained, although a weaker U.S. dollar and the impact of U.S. trade policy make the outlook more uncertain.


A recent WTO report showed that the UAE’s merchandise trade surged to AED 4.2 trillion in 2024, achieving a trade surplus of AED 240 billion. The report highlighted strong growth in both exports and imports, a trend that is expected to continue. Strong domestic demand is drawing in imports, while the UAE’s ongoing CEPA agreements are poised to expand export markets. The report also showed robust growth in the export of commercial services.


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