Riad Salameh arrest – turning point or strategic maneuver by former Lebanese central bank chief?

Analysis Riad Salameh arrest –  turning point or strategic maneuver by former Lebanese central bank chief?
Former Lebanese central bank chief Riad Salameh, who was arrested on Tuesday over alleged financial crimes. AP Photo/Hussein Malla/File
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Updated 05 September 2024
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Riad Salameh arrest – turning point or strategic maneuver by former Lebanese central bank chief?

Riad Salameh arrest –  turning point or strategic maneuver by former Lebanese central bank chief?

RIYADH: The arrest of Riad Salameh, Lebanon’s former central bank governor, has sent shockwaves through Lebanon’s financial and political spheres. 

After over a year of intense scrutiny and numerous allegations of financial misconduct, Salameh’s apprehension is being closely analyzed from multiple perspectives.

Some believe his arrest might be an attempt to deflect attention from systemic failures within Lebanon’s financial sector, while others regard the arrest as a significant development many hold both views.

One banker, who chose to remain anonymous, provided a nuanced interpretation of the situation when speaking to Arab News.

“My initial reaction is that the government is seeking a scapegoat to avoid taking responsibility for the financial crash,” he said. 

Despite this, he acknowledged that Salameh was not entirely blameless.

The banker expressed skepticism about the effectiveness of the Lebanese judiciary in tackling high-profile financial crimes. 

“The Lebanese judiciary lacks impartiality,” he stated. “Their attempts to bring criminals to justice have been ineffective, and the judges’ lack of experience in financial investigations is significant.”

He also questioned the credibility of seeing the arrest as a gesture toward international bodies like the Financial Action Task Force and the International Monetary Fund. 

“I don’t believe this will help,” he said, referring to Lebanon’s tarnished reputation due to inaction. 

His concern reflects a broader skepticism about whether the arrest will lead to substantive reforms or merely serve as a symbolic act.

On the topic of investor confidence, the banker was pessimistic. He argued that the damage to Lebanon’s financial system had already been done and meaningful changes are needed to ensure a true recovery.

“Politicians need to take responsibility and move forward, even if it means making difficult decisions,” he said.




The entrance of Lebanon's central bank in March 2023, covered in graffiti by protesters over the liquidity crisis which started in 2019. Shutterstock

While Lebanon’s central bank is supposed to be an independent organization, the banker highlighted that the governor’s tenure was marked by a preoccupation with political decisions rather than focusing on the financial management crucial to the institution.

This raises a critical question: Is Salameh solely to blame for Lebanon’s financial turmoil, or is he just one component in a much larger system of mismanagement and corruption? 

According to the banker, the situation reflects a broader systemic issue. 

“The simple words to describe this are mismanagement and corruption to the highest level,” he said, adding: “The irony is that it hasn’t really stopped.” 

This perspective suggests that while Salameh’s arrest might address one aspect of the crisis, it does not tackle the deep-seated issues that have plagued Lebanon’s financial and political systems for years.

George Kanaan, honorary chairman of the Arab Bankers Association, echoed some of the sentiments expressed by the anonymous banker but also provided a critical perspective on Salameh’s alleged misconduct. 

Kanaan expressed a clear stance on the matter, and said:: “I think he deserves to be in jail, and I think he has clearly committed theft.” 

He lamented that the more substantial issue of financial mismanagement, which he believes is not prosecutable, is overshadowed by Salameh’s individual actions.

Another anonymous banker provided a detailed analysis of the political context surrounding Salameh’s arrest, suggesting several possible scenarios that could explain the timing and nature of this high-profile event. 

He posited that Salameh’s arrest might be linked to broader political maneuvers and speculated on three primary scenarios.

Firstly, the banker suggested that Salameh’s arrest might be part of a larger political deal, potentially positioning him as a scapegoat for the pervasive corruption among Lebanese politicians. “His arrest might be part of a broader political deal,” he said.

This theory hinges on the idea that Salameh could be sacrificed to placate public outrage and international pressure, thereby protecting other, more powerful figures who may be equally or more culpable. 

The banker pointed out that Ali Ibrahim, the financial prosecutor of Beirut — who is reportedly a protégé of the head of the country’s parliament Nabih Berri — has just pressed charges of fraud and money laundering against Salameh. 

Berri was once one of Salameh’s major protectors, which adds a layer of complexity to the current political dynamics.

Another scenario proposed is that Salameh might have felt personally endangered and decided to turn himself in as a form of self-preservation. 

The banker highlighted that Salameh had been publicly summoned over the past 13 months but had consistently failed to attend hearings. 

His arrest, surrounded by high levels of secrecy and occurring without the presence of his legal team, could indicate that he feels safer in jail. 

“He might be feeling endangered due to threats, and he decided to turn himself in so he would be protected behind cell bars,” he noted.

The third scenario was that Salameh’s arrest could be a prelude to a future clearing of his name. 

According to this view, the arrest might be part of a strategy to demonstrate that the Lebanese judiciary is taking significant actions against high-profile figures. 

If Salameh is eventually declared innocent, it could imply that the Lebanese judiciary system has conducted a thorough investigation and that Salameh’s arrest was a procedural step rather than an indictment of his guilt. 

“He was arrested to be cleared and declared innocent at a later stage,” the banker suggested. 

This would signal that the judiciary is making a concerted effort to address corruption, albeit in a way that ultimately exonerates Salameh.

The banker emphasized that Salameh’s role as the central figure in Lebanon’s financial system adds considerable weight to these scenarios. 

“He is the secret keeper of all the financial transactions that happened in Lebanon,” he said, underscoring the pivotal role Salameh played in managing and orchestrating financial dealings. 

His deep involvement in the financial system and knowledge of sensitive transactions make him a key figure in understanding Lebanon’s financial mismanagement, which further complicates the political and legal landscape surrounding his arrest.

Legal analysis: implications and challenges

Jihad Chidiac, a Lebanon-based attorney, said the country was “positively surprised” by the arrest, but raised questions about its broader implications. 

He noted that Salameh’s prosecution in Lebanon could potentially preclude further international legal actions due to the principle of non bis in idem, or double jeopardy.




Lebanon-based attorney Jihad Chidiac. File

Chidiac highlighted the significance of the arrest in the context of Lebanese judicial capacity, saying: “Riad Salameh’s arrest represents a crucial step toward accountability of high-profile figures for alleged financial crimes.”

He also addressed the potential for the arrest to influence Lebanon’s relationship with international bodies. 

According to the attorney, the arrest could be a strategic move to align with international expectations and potentially improve Lebanon’s standing with the FATF and IMF. 

However, he cautioned that the arrest alone might not significantly advance Lebanon’s negotiations with these bodies, given the slow progress on reforms.

Chidiac expressed concerns about the broader impact of Salameh’s arrest on corruption and financial mismanagement in Lebanon. “Addressing these systemic problems will require a more comprehensive and sustained approach,” he said, emphasizing the need for effective legal actions and institutional reforms.

The attorney emphasized that while this case sets a new precedent — given that no other high-ranking figures have faced similar legal actions before — the eventual outcome remains uncertain. 

He highlighted the concern that if Salameh were to disclose crucial information, it could potentially jeopardize a large number of public and prominent figures. 

This adds an extra dimension to the case, as the ramifications of his revelations could be far-reaching.

“The possibility of such disclosures raises significant concerns about the stability of Lebanon’s political and financial institutions, and how they might react to protect themselves from further exposure,” Chidiac said.

Amine Abdelkarim, a criminal law specialist, echoed that reaction, as he argued that Salameh’s arrest was long-overdue. 

“The arrest of Riad Salameh is a purely legal act that should have occurred years ago. However, political interference prevented it,” he said.

Abdelkarim noted that “since the economic crisis and the October 17 revolution, European countries like Belgium, France, and Germany have pursued Salameh for crimes related to money laundering and illicit enrichment.”

Lebanon now faces a pivotal moment, as its judiciary must undertake a serious investigation into what Abdelkarim calls “the largest financial crime Lebanon has witnessed since its establishment, and perhaps the largest global financial crime at the level of a sovereign state.” 

The integrity of this process is underscored by Abdelkarim’s confidence in the investigative judge, Bilal Halawi, who he believes is key to ensuring the judiciary’s credibility.

Abdelkarim also touched on Lebanon’s complex relations with foreign nations, particularly European countries that have issued arrest warrants for Salameh. 

He noted that these countries are likely to demand Salameh’s extradition, creating a legal dilemma for Lebanon. 

“We cannot predict how relations might evolve if Lebanon refuses to hand over Salameh for prosecution abroad,” the law specialist said as he reflected on the diplomatic and legal challenges that lie ahead.

Regarding the possibility that Salameh’s arrest is part of a broader political negotiation, Abdelkarim expressed caution. 

While he acknowledged that such a scenario is possible, he doubted that Salameh would accept being the sole scapegoat for the financial collapse. 

“There are many political figures involved with Salameh, and I don’t believe he will be the only victim,” he remarked, leaving room for further developments in the political and legal fallout from the arrest.

On the potential for Salameh’s arrest to trigger broader reforms, Abdelkarim was cautiously optimistic. 

“This may lead to a correction in the way state funds are managed,” he said, noting that international pressure could push Lebanon toward necessary reforms. 

However, he tempered this optimism by acknowledging the political deadlock in Lebanon, particularly the ongoing failure to elect a new president, which may delay meaningful change.

From a legal perspective, Abdelkarim outlined the key charges against Salameh, including embezzlement of public funds, money laundering, and illicit enrichment. 

He warned of possible legal maneuvers by Salameh to obstruct the investigation, such as withholding crucial documents. 

Abdelkarim emphasized the need for judicial reform, particularly the passage of the judicial independence law, which has been stalled in parliament for years.

As Lebanon grapples with these developments, the effectiveness of the judiciary in handling such high-profile cases will be closely watched. 

It could serve as a litmus test for the country’s commitment to tackling corruption and restoring public trust in its institutions. 

The coming days will be crucial in determining whether this arrest will lead to meaningful reform or merely serve as a symbolic gesture.


Saudi real estate transactions hit $320bn

Saudi real estate transactions hit $320bn
Updated 8 sec ago
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Saudi real estate transactions hit $320bn

Saudi real estate transactions hit $320bn
  • System led to over 8 million real estate transactions
  • Shift driven by Vision 2030 and Real Estate Brokerage Law

RIYADH: Saudi Arabia’s real estate market recorded transactions worth around SR1.2 trillion ($319.8 billion) between July 2023 and July 2025, under the implementation of a new property initiative, according to a recent announcement. 

The figure was revealed by the General Real Estate Authority after the second edition of the Real Estate Brokerage Forum 2025, held at the Riyadh International Convention and Exhibition Center, the Saudi Press Agency reported. 

Saudi Arabia’s real estate sector is transforming under Vision 2030, which aims to raise homeownership to 70 percent by 2030, up from about 63.7 percent in 2023. The plan focuses on expanding mortgage lending, diversifying financing, and doubling mortgage activity through wider bank participation.

Tayseer Al-Mufarrej, general director of strategic communication and official spokesperson for the authority, highlighted the system’s impact during his keynote address, saying that it has led to over 8 million real estate transactions and the licensing of more than 86,000 brokers, alongside the approval of 75 digital platforms that host over 685,000 authorized listings. 

The shift is driven by Vision 2030 and the Real Estate Brokerage Law, introduced in 2022, which aims to professionalize property transactions through standardized contracts, broker licensing, and stricter oversight to boost transparency and protect consumers.

“Al-Mufarrej noted that the system had brought about a fundamental transformation in the structure of the sector by turning brokerage into a licensed profession governed by regulations and defined responsibilities and obligations,” SPA said. 

Within its first year, transactions rose by 17 percent, totaling SR605 billion in deals and prompting the licensing of tens of thousands of individual and corporate brokers, as well as digital platforms.

In the forum’s first panel discussion, titled Legislative Updates and Empowerment Opportunities in the Real Estate Brokerage System, speakers said that the sector now operates within an enabling regulatory framework that supports growth. 

They described the current environment as the most significant regulatory transformation in the sector’s history, aimed at boosting reliability and sustainability. 

A second panel discussion, titled “From Value Creation to Sustainable Sales,” addressed the ongoing urban development in the Kingdom.

Participants praised the governance measures and planning standards that have improved residential neighborhoods and elevated the quality of life. 

The forum, organized by the authority, is part of broader efforts to enhance the real estate business environment, supporting economic growth and aligning with the comprehensive national real estate strategy. 


Saudi fund extends $32m in loans to Bosnia for education, innovation projects

Saudi fund extends $32m in loans to Bosnia for education, innovation projects
Updated 48 min 13 sec ago
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Saudi fund extends $32m in loans to Bosnia for education, innovation projects

Saudi fund extends $32m in loans to Bosnia for education, innovation projects
  • $19 million allocated to build a science and technology park
  • $13 million issued to develop new student dormitory

JEDDAH: Social infrastructure in Bosnia and Herzegovina is set to improve following two Saudi-funded development loans worth $32 million, targeting science, technology, and higher education facilities. 

The Saudi Fund for Development has allocated $19 million for the construction of a Science and Technology Park, and $13 million for the development and outfitting of a new student dormitory at the Borisa Starovic Public Institution Student Center in Foca, in the country’s southeastern region. 

SFD CEO Sultan Al-Marshad signed the deals with Bosnia’s Minister of Finance and Treasury Srdan Amidzic, in the presence of Saudi Ambassador Osama bin Dakhil Al-Ahmadi, according to an official release. 

The new funding builds on nearly three decades of Saudi-Bosnian cooperation, during which the SFD has financed 27 projects through nine concessional loans totaling over $163 million, along with $53 million in grants supporting post-war reconstruction and long-term development. 

“The Science and Technology Park Project aims to establish a multidisciplinary scientific center covering a total area of approximately 200,000 square meters, supporting technological advancement, economic development, health care, and higher education,” the SFD said. 

“The center will serve as a collaborative hub for researchers, scientists, and entrepreneurs across various fields,” it added.

The student housing project is intended to strengthen the higher education sector by boosting student enrollment and providing improved accommodation to enhance learning opportunities and support broader community development. 

The agreements with Bosnia and Herzegovina come amid the SFD’s broader engagement in the Balkans. In October 2024, Serbia signed three loan agreements worth $205 million with the fund to support its agriculture, education, and energy sectors, underscoring Saudi Arabia’s growing development partnerships across Southeastern Europe. 

The SFD’s activity in Bosnia is part of a larger push across emerging economies. In a separate deal earlier this month, the fund signed a $30 million loan agreement with Tajikistan to finance the Kulob city ring road project. 

The project aims to enhance regional transit infrastructure by linking Central Asian countries with China and Indian Ocean markets via land routes. It includes the construction of a road and two bridges to improve traffic flow, road safety, and trade efficiency. 

An SFD delegation led by Al-Marshad also recently participated in the inauguration of the Wayamba University township development project in Sri Lanka

The $28 million initiative, located in the country’s northwestern province, includes new construction, classroom renovations, and modern educational equipment to strengthen the higher education sector. 


Middle East gas demand expected to rise by 3.5% in 2026: IEA

Middle East gas demand expected to rise by 3.5% in 2026: IEA
Updated 22 July 2025
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Middle East gas demand expected to rise by 3.5% in 2026: IEA

Middle East gas demand expected to rise by 3.5% in 2026: IEA

RIYADH: The combined gas demand in the Middle East and Africa region is expected to rise by 2 percent in 2025 before accelerating to 3.5 percent in 2026, driven by higher use in the industry and power sector, an analysis showed. 

In its latest report, the International Energy Agency projected that global gas consumption is projected to reach an all-time high in 2026, with demand growth accelerating to around 2 percent, up from the expected 1.3 percent expansion in 2025. 

In April, a report by the World Bank echoed similar views, stating that global gas consumption is expected to be moderate in 2025, before rebounding in 2026, due to high demand in markets such as the Asia Pacific and the Middle East. 

Commenting on the recent report, IEA Director of Energy Markets and Security Keisuke Sadamori said: “The backdrop for global gas markets is shifting as we enter the second half of this year and look toward 2026. The wave of LNG (liquefied natural gas) supply that is set to come online is poised to ease fundamentals and spur additional demand, especially in Asia.” 

Sadamori added that the IEA’s latest projection on gas demand and consumption is subject to unusually high levels of uncertainty over the global macroeconomic outlook and the volatile geopolitical environment. 

Natural gas is a significant source of energy for power generation, industrial processes, and heating. It is widely considered a cleaner-burning fuel than coal or oil as the world continues its energy transition journey.

The IEA further stated that Asia’s gas demand is expected to rise by more than 4 percent in 2026, accounting for around half of the global gas demand growth. 

In North America, natural gas demand is expected to increase by less than 1 percent next year, primarily supported by the power sector. 

The report, however, noted that gas demand in Europe is projected to decline by 2 percent next year, amid strong renewable energy output. 

With global gas consumption expected to reach an all-time high in 2026, usage by industry and the energy sector is forecast to contribute around half of the incremental demand. 

Gas-to-power demand is projected to account for 30 percent of the total demand growth in 2026, while gas use in the residential and commercial sectors is expected to increase by around 1 percent, assuming average weather conditions prevail.

Stable Middle East and energy security

According to the latest IEA report, stable geopolitical conditions in the Middle East region are critical to ensure global energy security. 

“The conflict between Israel and Iran highlighted the energy interdependencies within the Middle East and the region’s crucial role in global oil, natural gas and fertilizer supply security,” said the energy agency. 

It added: “The Middle East accounts for 30 percent of global oil and 18 percent of global gas production, almost 25 percent of LNG supplies and around one-third of global urea exports.” 

According to the study, the crisis in the Middle East region put intense upward pressure on prices, with the Israel-Iran conflict fueling strong price volatility across commodity markets. 

In the cases of natural gas and urea, higher prices were also supported by actual disruptions to production and physical trade flows. 

Due to rising security concerns, Israel shut natural gas production at the Leviathan and Karish fields between June 13 and 15 and halted piped gas exports to Egypt and Jordan, which in turn led to the curtailment of fertilizer production. 

In Iran, attacks damaged a platform at South Pars Phase 14, reducing output by around 12 million cubic meters per day. 

Production in gas fields and trade flows in the Middle East region were gradually restored following a ceasefire between Israel and Iran. 

“The initial increase in prices was largely driven by the fear that an escalation of the conflict could lead to the closure of the Strait of Hormuz — the world’s most critical oil and LNG chokepoint, which is located between Iran and Oman,” said IEA. 

Earlier this month, a report released by Rystad Energy, a research and analysis firm, stated that the Middle East region is on track to surpass Asia and become the world’s second-largest gas producer by 2025, ranking only behind North America. 

According to the analysis, gas production in the Middle East has increased by around 15 percent since 2020, and future growth underscores the determination of regional producers to monetize their gas reserves and develop export potential to meet global demand. 

The analysis added that Iran currently leads the Middle East in gas production, with about 25 billion cubic feet per day, followed by Qatar at 16 bcfd and Saudi Arabia at eight bcfd. 

LNG supply

According to the latest IEA report, global LNG supply in 2026 is projected to rise by 7 percent or 40 billion cubic meters, as new projects are expected to come online in countries including Qatar and the US. 

Qatar plans to expand its LNG production capacity from 77 million tonnes per annum to 110 mtpa by 2026 and 126 mtpa by 2027, ultimately reaching 142 mtpa by 2030.

In March, global credit rating agency Fitch said that state-owned Qatar Energy’s North Field projects will support both hydrocarbon and non-hydrocarbon growth from 2025 to 2030. 

North Field, which holds nearly 10 percent of the world’s known LNG reserves, lies off the northeast shore of the Qatar peninsula, covering more than 6,000 sq. km — roughly half the country’s land area. 

For the whole of 2025, global LNG supply is expected to increase by 5.5 percent or 30 bcm, primarily supported by the ramp-ups of major new LNG projects in North America.

These projects in North America include the Plaquemines LNG project and the Corpus Christi Stage 3 expansion, as well as LNG Canada.


Abu Dhabi Airports sees 13% rise in passenger numbers despite airspace disruptions

Abu Dhabi Airports sees 13% rise in passenger numbers despite airspace disruptions
Updated 22 July 2025
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Abu Dhabi Airports sees 13% rise in passenger numbers despite airspace disruptions

Abu Dhabi Airports sees 13% rise in passenger numbers despite airspace disruptions

JEDDAH: Abu Dhabi Airports handled more than 15.8 million passengers in the first half of 2025, up 13.1 percent from the previous six months, despite regional airspace disruptions. 

Zayed International Airport, the UAE’s second-largest air base and a key international hub connected to over 120 passenger destinations, played a central role in the surge. It recorded 15.5 million passengers by the end of June — a 13.2 percent year-on-year increase, according to the UAE’s official news agency WAM. 

The government-owned operator showed resilience, maintaining steady growth in both passenger traffic and flight movements despite regional disruptions caused by a 12-day conflict between Israel and Iran. The unrest led to airspace closures across the Gulf, including the UAE, resulting in flight suspensions and rerouting. 

Elena Sorlini, managing director and CEO at Abu Dhabi Airports, said: “Consistently delivering positive growth for the past 17 quarters is testament to the dedication and collective effort of the entire Abu Dhabi Airports team.” 

She added: “It reflects our operational agility and commitment to delivering an exceptional aviation experience and attracting international investors.” 

This increase in passenger traffic was accompanied by 133,533 total flights across the five airports in the first half of 2025, marking a 9.2 percent rise compared to the same period last year, according to the WAM report. 

Zayed International Airport recorded 93,858 aircraft movements during the first half, up 11.4 percent from 84,286 flights in the first six months of 2024. 

Etihad Airways temporarily halted some regional flights amid the tensions. Meanwhile, Wizz Air recently announced plans to exit Abu Dhabi from Sept. 1, citing geopolitical instability and airspace restrictions. 

Abu Dhabi Airports pushed ahead with network expansion, introducing 16 new destinations and onboarding several new airline partners in the first half of the year. 

These include China Eastern Airlines’ four-times-weekly Shanghai service, which will become daily in September; Air Seychelles’ six weekly flights; and Fly Cham’s route to Damascus. 

Indian carrier IndiGo also added new services to Madurai, Bhubaneswar, and Visakhapatnam, making Zayed International its most connected hub in the UAE. 

Cargo volumes also rose, reaching 344,795 tonnes in the first half of the year, supported by infrastructure upgrades and growing trade flows through the emirate.


Kuwait economy rebounds in Q1 with 1% growth 

Kuwait economy rebounds in Q1 with 1% growth 
Updated 22 July 2025
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Kuwait economy rebounds in Q1 with 1% growth 

Kuwait economy rebounds in Q1 with 1% growth 
  • Rebound marks end of seven consecutive quarters of contraction
  • Kuwait’s oil production began increasing in April, adding 135,000 bpd

RIYADH: Kuwait’s economy returned to positive territory in the first quarter of 2025, recording a 1 percent year-on-year increase in real gross domestic product, according to a report from the National Bank of Kuwait. 

The rebound marks the end of seven consecutive quarters of contraction, driven primarily by a gradual recovery in the non-oil sector. 

The bank’s analysis noted that the non-oil economy continued to expand, supported by sustained momentum in manufacturing, real estate, and transportation sectors, while the impact of previous oil production cuts has begun to fade.

In parallel, Kuwait’s oil production began increasing in April, adding 135,000 barrels per day, which is expected to benefit the overall economy in the coming months despite still-muted gains from the oil sector. 

The growth comes as the World Bank and the International Monetary Fund project that the GCC economy will grow by around 3.2–3.5 percent in 2025, supported by the rollback of OPEC+ production cuts and ongoing efforts to diversify the economy, despite global headwinds.

NBK’s analysis stated: “With the negative effects of earlier voluntary oil production cuts beginning to fade, oil GDP recorded only a marginal decline, the softest since Q2 2023.” 

Growth in Kuwait’s non-oil sector slowed to 2 percent year-on-year in the first quarter of 2025, down from 4 percent in the previous quarter, reflecting a moderation in manufacturing activity. 

Meanwhile, the oil sector contracted by 5.7 percent year on year, compared to a 0.3 percent contraction in the same period of 2024.

Average oil output in the first quarter declined to 2.4 million bpd, an annual drop of 0.7 percent.

However, NBK’s report pointed to a likely improvement starting in the second quarter of this year, as Kuwait began unwinding OPEC+ production cuts in April, which could raise output to 2.2 million bpd. 

“Originally planned to be unwound over the course of 18 months, OPEC+ has accelerated the pace of supply hikes with output now on a path to be fully restored in September, a full year ahead of schedule,” the report stated. 

This, combined with ongoing support for non-oil activity and the implementation of key public investment projects, is expected to help stabilize GDP growth. 

Across the Gulf region, the economic performance in the first quarter of 2025 also showed broad strength. 

Saudi Arabia reported a robust 3.4 percent year‑on‑year rise in GDP, driven by a 4.9 percent expansion in non‑oil activities, while oil output fell slightly by 0.5 percent, according to GASTAT. 

The UAE’s non-hydrocarbon economy continued to drive growth, supporting full-year GDP forecasts of around 4.4 percent, underpinned by steady oil output and surging sectors of services, construction, and trade.

CPI up

Consumer prices in Kuwait rose in June, with the Consumer Price Index increasing by 0.29 percent from the previous month to 136.9. 

On an annual basis, inflation reached 2.32 percent compared with June 2024. The food and beverage group recorded the highest annual increase at 5.11 percent, driven by rising costs across categories including cereals, meat, dairy products, and vegetables. 

Other notable annual increases included clothing and footwear with 3.93 percent, miscellaneous goods and services with 4.80 percent, and health at 2.94 percent. 

Conversely, the transportation group recorded a decline of 1.81 percent year on year.