MENA | UAE inflation; Israel re-opening; Saudi investment

Data for the UAE show inflation turned positive in August for the first time since December 2018, due to a 21.8% jump in entertainment and cultural services prices and a 1.2% rise in the cost of education. The CPI rose 0.6% y/y in August, up from a small decline in July. We still forecast average inflation of -0.5% for 2021 before a rise to 1.1% next year.

What you will learn:

• Israel looks likely to re-open to vaccinated tourists from November, after postponing such plans due to an increase in the Delta variant in August.
• This should help Israel to capitalise on regional visitors to the UAE’s Expo 2020 as the bilateral visa waiver between the two countries came into effect in October, which should in turn aid the recovery in the tourism sector.
• Saudi Arabia has announced the launch of its National Investment Strategy to support Vision 2030 goals.