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RIYADH: Lower energy costs will help inflation ease to 12.2 percent this year and 10.3 percent in 2026 across the Middle East and North Africa, according to the International Monetary Fund. 

In its October 2025 Regional Economic Outlook, the IMF said inflation is slowing from 14.2 percent in 2024, with fiscal tightening and subsidy reforms also having an impact.

Inflation in Gulf economies remains among the lowest globally, reflecting stable exchange rates and prudent fiscal policies, with the Gulf Cooperation Council’s average rate projected at 1.7 percent in 2025 and 2 percent in 2026 — underscoring the bloc’s resilience to global price pressures. 

�������� is expected to maintain a stable inflation rate, with the IMF forecasting its Consumer Price Index at 2.1 percent in 2025 and 2 percent in 2026. 

Jihad Azour, director of the IMF’s Middle East and Central Asia Department, said: “Inflation trends vary across the region, but in most economies, inflation is moderating or declining, supported by tight monetary policy and lower food and energy prices.” 

He added: “Financial conditions have also improved: sovereign spreads have narrowed, currencies have adjusted smoothly, and several countries have regained market access.” 

In the UAE, inflation is expected at 1.6 percent in 2025 and 2 percent in 2026, while Qatar’s rates are forecast at 0.1 percent and 2.6 percent, respectively. 

The MENA region’s double-digit inflation reflects high consumer prices in countries such as Iran, Kazakhstan, Egypt, and Sudan. 

Iran’s inflation is projected at 42.4 percent in 2025, easing slightly to 41.6 percent in 2026. Kazakhstan’s rate is expected to remain elevated at 11.4 percent in 2025, up from 8.7 percent in 2024. 

Sudan faces the region’s highest inflation, projected at 87.2 percent in 2025 and 54.6 percent in 2026, following 185.7 percent in 2024. Egypt’s inflation is expected to ease to 20.4 percent in 2025, down from 33.3 percent in 2024. 

The IMF also projects the inflation rate for the broader Middle East, North Africa, Afghanistan, and Pakistan region at 11.2 percent in 2025 and 9.8 percent in 2026, down from 15.2 percent in 2024. 

GDP growth projections 

The IMF said the MENA region is expected to see a gross domestic product expansion of 3.3 percent in 2025, rising to 3.7 percent in 2026. 

In the MENAP region, the economy is projected to grow by 3.2 percent in 2025, before accelerating to 3.7 percent in 2026, supported by higher oil output, rising domestic demand, and ongoing reforms. 

“So far in 2025, economic activity in the Middle East and North Africa has shown remarkable resilience, despite persistent global uncertainty and heightened geopolitical tensions,” said Azour. 

He added: “The region has largely avoided direct fallout from higher US tariffs and global trade restrictions. And while recent tensions have raised concern, their impact has been limited and short-lived.” 

In the GCC region, the economy is forecast to expand by 3.9 percent in 2025, further accelerating to 4.3 percent in 2026. 

Among MENA oil exporters, stronger growth stems primarily from higher-than-expected production following the unwinding of OPEC+ cuts. Growth in these economies is projected at 3 percent in 2025 and 3.4 percent in 2026, compared with 2.5 percent last year. 

According to the IMF, ��������’s economy is projected to grow by 4 percent in both 2025 and 2026, while the UAE economy is expected to expand by 4.8 percent in 2025 and 5 percent in 2026. 

“GDP growth in MENA is expected to strengthen further this year and next, driven by resilient demand, higher oil output, and ongoing reforms. Over the medium term, growth should gradually accelerate as reforms and stabilization policies take hold,” said Azour. 

On the downside, he cautioned that elevated geopolitical tensions in the region could negatively affect economic growth. 

He also noted that lower global demand or tighter financial conditions could put pressure on countries with large financing needs or banking systems heavily exposed to sovereign debt. 

RIYADH: ��������’s ride-hailing sector witnessed a major surge during the third quarter of 2025, reaching 39.04 million thanks to a 78 percent year-on-year increase, according to the Transport General Authority. 

The TGA revealed that ride-hailing trips were heavily concentrated in the Kingdom’s major urban centers, with the Riyadh region responsible for 43.9 percent of all trips.

It was followed by the Makkah region at 22.13 percent and the Eastern Province at 14.5 percent, according to a report from the Saudi Press Agency.

This comes as a significant demonstration of the rapid modernization of the Kingdom’s transit networks, complementing an expansion in rail travel, which recorded a 335 percent year-on-year surge in passengers, also reaching 39 million in the same quarter. 

The overall expansion across both road and rail transport aligns with the objectives of the National Transport and Logistics Strategy, which aims to raise the sector’s contribution to the gross domestic product to 10 percent by 2030, up from the current 6 percent.

The remaining regional shares were distributed across the Kingdom. Madinah region accounted for 5.76 percent, followed by Aseer region at 3.55 percent and Qassim region at 3 percent. 

Tabuk region held a 2.49 percent share, while Hail and Jazan registered 1.85 and 1.13 percent, respectively. 

Najran saw a 0.58 percent share, with Al-Jouf registering 0.55 percent. The Northern Borders and Al-Baha posted a 0.28 percent and a 0.23 percent share, respectively.

This widespread usage underscores the integration of digital mobility solutions across the nation. It also comes as the market becomes increasingly competitive with the recent entry of new services such as inDrive which launched in Riyadh in September, following its successful debut in Jeddah.