Inflation set to spike in UAE, other Gulf countries due to Russia-Ukraine war

News Network
May 30, 2022

Economists have warned that Inflation in the wider Middle East including the Gulf Cooperation Council countries will spike this year due to an increase in food and commodity prices after the Russia-Ukraine war.

“The UAE economy has had a strong start to 2022, with crude oil production up 12 per cent year-on-year in the first quarter of this year. Survey data points to a solid expansion in non-oil sectors as well. We expect inflation to average 4.3 per cent this year from 2.3 per cent previously, significantly higher than last year’s 0.2 per cent average consumer price index,” said Emirates NBD Research in a recent quarterly report on the region.

It is projected that the inflation will ease to 2.5 per cent for the UAE next year.

While inflation in most of the other Gulf countries will also witness a surge this year, with average inflation reaching 3.0 per cent, 3.5 per cent, 2.5 per cent, 3.5 per cent and 3.0 per cent in Saudi Arabia, Qatar, Oman, Kuwait and Bahrain, respectively.

The increase in inflation is attributed to the impact of the Ukraine-Russia war on the global food and other commodity prices as well as high crude oil prices.

James Swanston, economist for the Mena region at Capital Economics, said non-Gulf economies are more vulnerable to the fallout from the Ukraine war.

“Higher commodity prices will increase subsidy costs in North Africa, which is likely to prompt governments to cut expenditure elsewhere. At the same time, inflation will rise further and erode households’ real incomes,” he said.

He said higher commodity prices will also cause external positions to deteriorate further.

Recently, Egypt responded to this by devaluing the pound in March, and Swanston believes Cairo will need to let the currency fall further. “This will push inflation up, even more, taking it well above the central bank’s target range and prompting another 350bp of interest rate hikes (to 12.75 per cent) by year-end – this is far more tightening than most currently expect.”

James Swanston projected that inflation will increase in Saudi Arabia in the coming months due to the impact of rising global food prices.

“However, we do not expect the headline rate to rise to levels seen elsewhere in the emerging world, particularly as the government has kept a cap on local fuel prices since July last year. Inflation should peak around 2.5 per cent and then fall back to around 1.0-1.5 per cent year-on-year where it will remain throughout 2023-24. If the government does loosen fiscal policy by cutting value-added tax (VAT), this would knock inflation further down,” he added.

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coastaldigest.com news network
October 8,2024

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Mangaluru, Oct 8: The city of Mangaluru mourns the loss of M Ahmed, a pioneering businessman, philanthropist, and the Founder Chairman of the AK Group. He passed away on Tuesday morning at the age of 76, leaving behind a legacy that spans decades of service, innovation, and community building.

M Ahmed, also fondly known as A K Ahmed, was a man of humble beginnings who grew into one of the most respected entrepreneurs in South India. He founded the AK Group in 1984, which has since flourished into a multi-faceted business empire. The company, which began as a small frame manufacturing unit, now encompasses a wide range of industries, including plywood, formaldehyde, particle boards, fire-rated products, and more. AK Group's growth extended beyond India, with manufacturing units established in Myanmar and Vietnam.

What began with 18 employees in 1984 has today expanded to provide employment to approximately 3,000 people in India and 400 abroad. M Ahmed’s dedication and vision were instrumental in transforming the company into a market leader, recognized for its high-quality products and innovation. AK Plywood is now one of India’s top plywood manufacturers, and the largest in South India. The company was Karnataka’s first plywood manufacturer to receive ISO certification and has garnered prestigious awards, including the Rising Stars Power Brands Award in London (2017) and the Best Manufacturer Award from MSME Karnataka (2018).

Ahmed’s business success was deeply rooted in values instilled in him during his early years. He worked alongside his father, the late Abdul Khader Moopa, loading sawn timber, and it was from these humble beginnings that he developed his work ethic, pioneering spirit, and respect for time—values that remained the cornerstone of his remarkable career.

His foresight was evident when he recognized the potential of timber from Perumbavoor, Kerala, for plywood and blockboards at a time when it was merely being used as firewood. This strategic move led to the establishment of one of the first frame manufacturing and peeling units there, and soon after, Ahmed launched his own company in Mangaluru, swiftly earning national and international recognition.

Beyond plywood, the AK Group has diversified into multiple industries, including marine food, pharmaceuticals, construction materials, hypermarkets in India and the UAE, and food industries in Indonesia. Under Ahmed’s leadership, the company’s reach expanded, ensuring its position as a formidable player in various sectors.

Ahmed was not only an extraordinary businessman but also a deeply compassionate individual, dedicated to social and religious causes. He served as the founding president of the managing committee of Ihsan Masjid in Mangaluru and established the Highland Educational and Cultural Centre. His philanthropic efforts were as vast as his business ventures, benefiting countless communities both in India and abroad.

His kindness, simplicity, and punctuality were hallmarks of his character. Those who knew him admired his unyielding commitment to excellence, as well as his warmth and generosity. M Ahmed is survived by his wife, three daughters, and four sons, who continue his legacy of philanthropy and social service.

As news of his passing spread, tributes poured in from all sectors of society. Social, religious, and political leaders in Mangaluru expressed their deep sorrow over the loss of a man who dedicated his life to improving the lives of others.

M Ahmed’s journey from humble beginnings to massive success will continue to inspire generations. His life serves as a testament to the power of vision, perseverance, and, above all, integrity.

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News Network
October 4,2024

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Leader of the Islamic Revolution Ayatollah Seyyed Ali Khamenei has hailed “the brilliant work of our armed forces” in launching a missile strike on the Tel Aviv area, saying it was “completely legal and legitimate”.

Ayatollah Khamenei delivered a public sermon at the weekly Friday (Jum’a) prayer to a huge number of worshipers gathered at the Imam Khomeini Grand Mosalla mosque in central Tehran.

“The brilliant work of our armed forces was completely legal and legitimate. What our armed forces did was the least punishment for the usurping Zionist regime over the astonishing crimes of this wolf-like regime and rabid dog of America," he said.

Ayatollah Khamenei, “Whatever duty the Islamic Republic has in this regard, it will fulfill with strength and fortitude. We will neither delay nor hurry in carrying out the task."

“What is logical and reasonable and the opinion of the political and military decision makers will be done in the future if necessary just like it was done” on Tuesday, he added.

The prayer in Tehran followed a commemoration ceremony for Hezbollah leader Sayyed Hassan Nasrallah who was assassinated in an Israeli airstrike in Beirut. Ayatollah Khamenei last led Friday prayers in January 2020 after Iran fired missiles at a US army base in Iraq, in response to a strike that martyred anti-terror commander Brigadier General Qassem Soleimani.

Ayatollah Khamenei described Nasrallah "my brother, my dear and my pride, the beloved face of the Islamic world, and the eloquent voice of the nations of the region, [and] the shining jewel of Lebanon".

“I felt it necessary to pay tribute to Mr. Sayyed Hassan Nasrallah (May God bless him and grant him peace) in the Friday prayer in Tehran, and to convey some notifications to everyone,” the Leader said.

“The audience of this sermon is the whole Islamic world, but it is specially addressed to the dear nation of Lebanon and Palestine.

“We are all saddened and mournful for the martyrdom of Dear Sayyed. This is a great loss and we are deeply saddened, but our mourning does not mean depression, distress and despair.

“It is a kind of mourning for the Master of Martyrs Hussein ibn Ali. It is enlivening, instructive, motivating, and hopeful,” the Leader said, referring to Imam Hussein (AS), the third Imam of Shia Muslims.

Ayatollah Khamenei said though Nasrallah's body has left this world, “his true personality, his soul, his way, and his expressive voice are still among us and will be with us forever”.

“He was the high flag of resistance against oppressive and predatory demons - an eloquent voice and a brave defender of the oppressed. He was a source of encouragement and valor for fighters and rights seekers. His popularity and influence had gone beyond Lebanon, Iran and Arab countries, and now his martyrdom will increase this influence.”

Ayatollah Khamenei said all Muslims are bound to “pay their debt to the wounded and bloody Lebanon”.

“Hezbollah and the Martyr Sayyed, by defending Gaza and Jihad for Al-Aqsa Mosque and striking the usurping and tyrannical regime, took a step in the path of vital service to the entire region and the entire Islamic world,” the Leader said.

The relentless defense of the Lebanese people for the Palestinians, he said, is “legal, reasonable, logical and legitimate, and no one has the right to criticize them for entering this battle”.

By the same token, the Al-Aqsa Storm operation of Palestinian fighters inside the Israeli occupied territories in October 2023 was “right and internationally legal”, he added.

“The Palestinian nation has the right to stand against the aggressors, and no court has the right to protest to the Palestinian nation for standing against the usurping enemy of Palestine.”

Ayatollah Khamenei said the adamance of the US and its allies on protecting Israel is a “cover for the deadly policy of turning the usurping regime into their tool to take over all the resources of this region and use it in major global conflicts”.

“Their policy is to turn the regime into a gateway for the export of energy from the region to the Western world and the import of goods and technology from the West to the region.

“This tells us that every attack on the regime by anyone and every group is a service to the entire region and to the entire humanity.

“This Zionist and American dream is definitely a false and impossible fantasy. The regime is the evil tree uprooted from the earth, which according to divine truth has no abode,” he added.

The Zionist regime, the Leader said, has kept itself afloat simply by being injected American support, adding the situation will not last long.

“Today, the Zionist criminal gang itself has come to the conclusion that they will never win over Hamas and Hezbollah."

The Leader called on Muslims to unite against the world’s arrogant powers and transgressors who are still following their policy of divide and conquer with all kinds of tricks in the Islamic states.

“The policy of the Qur'an is that Muslim nations and groups should have solidarity, and if you have this solidarity, divine wisdom will support you and you will overcome all obstacles and win over all enemies."

The Leader said the time has come for the Islamic Ummah to overcome the plots of the enemies.

"The enemy of the Iranian nation is the same enemy of the Palestinian nation, the Lebanese nation, the Iraqi nation, the Egyptian nation, the Syrian nation and the Yemeni nation. The enemy is one.”

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News Network
October 2,2024

The Ministry of External Affairs (MEA) has issued a travel advisory for Indian citizens in light of the escalating tensions in the Middle East, specifically advising against non-essential travel to Iran.

"We are closely monitoring the recent escalation in the security situation in the region. Indian nationals are advised to avoid all non-essential travel to Iran. Those currently residing in Iran are requested to remain vigilant and stay in contact with the Indian Embassy in Tehran," the Ministry of External Affairs said.

For those already residing in the country, the MEA advised vigilance and recommended staying in close contact with the Indian Embassy in Tehran for any assistance. The situation continues to be under observation as tensions in the region unfold.

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