Food, drinks prices and VAT pushes inflation to 5.3% in April

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Updated 21 May 2021
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Food, drinks prices and VAT pushes inflation to 5.3% in April

  • The General Authority for Statistics (GASTAT) said in its latest report that prices ‘still reflect’ the VAT increase
  • Annual inflation was 3.4 percent in 2020, picking up in the second half of the year

RIYADH: The increase in value-added tax (VAT) last summer and the resultant rise in food and drink prices has seen Saudi Arabia’s inflation rate jump to 5.3 percent in April, up from 4.9 percent in March and 1.3 percent in April 2020, according to official data.

In the wake of the economic impact of the coronavirus (COVID-19) pandemic, the Kingdom increased VAT from 5 percent to 15 percent in July 2020.

The inflation rate rose from 0.5 percent in June to 6.1 percent in July, hitting a peak of 6.2 percent in August, before steadying back to 4.9 percent in March.

The General Authority for Statistics (GASTAT) said in its latest Consumer Price Index report that prices “still reflect” the VAT increase and the increased inflation rate was mainly due to the 8.4 percent rise in food and beverages and 14.9 percent increase in transport prices. The food and drinks changes were mainly due to rising meat prices, which increased by 9.7 percent in April, and vegetable prices, which rose 6.1 percent.

Overall, the GASTAT said food and beverage expenses account for around 17 percent of consumer expenditure.

In the transport sector, the report said rising inflation was mainly due to an increase in the price of new vehicles. Other sectors to see price increases in April include telecommunications (up 13.5 percent), tobacco (13.1 percent), restaurants and hotels (8.3 percent), furnishings, household equipment and maintenance (7.4 percent), clothes and footwear (5.8 percent) and healthcare (3.3 percent).

Meanwhile, the education sector saw prices drop 9.1 percent, as school fees dipped, while the price of utilities — such as housing, water, electricity, gas and other fuels — declined by 2.6 percent.

“Looking ahead, we think that the headline inflation rate will continue to drift higher over the rest of this quarter, peaking at around 6.5 percent year-on-year in June, largely due to stronger energy price inflation. But inflation will drop sharply from July as the effects of the VAT hike drop out of the annual price comparison and stay at around 1-2 percent year-on-year over the course of this year and next,” James Swanston, an economist at London-based Capital Economics, said in a report on Thursday.

The issue of the increase in VAT was addressed by Crown Prince Mohammed bin Salman in his televised interview at the end of April, where he said the increase would only be short-term. “It’s a temporary decision. It will continue for a year, maximum five years, and then things will go back to what they were ... We’re targeting it to be between 5 to 10 percent only until we reinstate our balance after the pandemic, so maybe after a year. So, depending on the economic situation or what may transpire but maximum five, minimum one year,” he said.

While the Saudi economy contracted 3.3 percent in the first quarter of this year, it is expected to grow 2.1 percent overall in 2021, according to the International Monetary Fund.

Earlier this month, business activity in the Saudi Arabian non-oil private sector in April accelerated at the fastest pace in three months, owing to a significant rise in new sales as businesses recovered from the impact of the COVID-19 pandemic, according to the latest IHS Markit Purchasing Managers’ Index (PMI) survey. Firms in the Kingdom also expanded staff numbers for the first time in five months, the index showed.

David Owen, an economist at IHS Markit, said: “The Saudi Arabia PMI rebounded in April to indicate a strengthening of growth across the non-oil economy. New orders picked up at the quickest rate for three months as business conditions continued to recover from COVID-19. The rise helped lead to a renewed uplift in employment, with the pace of increase the fastest since November 2019.”


Saudi youth turn to AI for art and culture

Updated 13 February 2026
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Saudi youth turn to AI for art and culture

  • Creativity, heritage and technology converge in a new generation of artists

RIYADH: As Saudi Arabia’s Vision 2030 places creativity, culture and technological innovation at the core of national development, the impact of these priorities is becoming increasingly visible across a wide range of disciplines and practices.

Through the use of artificial intelligence, young Saudis are integrating technology into their creative work both as a practical tool and as a medium in its own right. In doing so, they are expanding their capabilities, exploring personal and collective identity, and finding new ways to preserve and reinterpret cultural heritage.

“AI gives young Saudis a new way to interact with their own cultural inheritance,” said Dmitry Zaytsev, founder of Dandelion Civilization, a platform designed to help individuals shape unique professional paths.

Dmitry Zaytsev, founder of Dandelion Civilization. (Supplied)

“Traditional design elements such as calligraphy or geometric motifs were once difficult to modify. Experimentation required resources and formal approval. AI removes that barrier and makes exploration immediate. A creator can test many versions of a pattern and see which ones still feel authentic to them,” he told Arab News.

According to Zaytsev, this emerging form of expression does not signal a rejection of tradition, but rather a deeper engagement with it. “The young creator discovers what can change and what must remain constant. AI becomes a sketchbook that allows culture to evolve through curiosity rather than fear. When creators correct a model or push it toward local rhythm, they strengthen rather than dilute cultural identity,” he explained.

Sarah AlBaiz, an art adviser, researcher and artist, uses code to blend visual art with concepts drawn from culture and philosophy. While her early practice focused primarily on painting, her trajectory shifted during the 2020 AI Artathon, a pioneering international event highlighting collaboration between humans and machines in artmaking, where she discovered how to merge her engineering background with her creative work.

DID YOU KNOW?

• Saudi youth are using AI as a creative tool to reinterpret heritage, from calligraphy to folklore.

• AI is helping artists experiment faster without the traditional barriers of resources or formal approval.

• The Kingdom is backing creative AI nationally, with programs like SAMAI aiming to empower 1 million Saudis for an AI-driven future.

Operating within the field of computational creativity, where technology actively participates in the artistic process, AlBaiz explores themes of finance and faith. “Because they’re two sides of who I am,” she said. “When you talk about values, for example, that is both a term used in finance and trade from an objective perspective, but also moral and spiritual value.”

“When you understand prompting in AI, you can get it to produce almost anything. But it’s also informed by the training data it has,” she said.

Sarah Albaiz's "Diriyah II (2020)" melds a traditional Saudi landmark with the avant-garde. This generative artwork rejuvenates the historic Alsalwa Palace in Diriyah. By infusing Munira AlTheeb's artistry through GAN style transfer, the piece stands as a testament to the evolving narrative of Saudi heritage. (Supplied)

Rather than relying on a single platform, AlBaiz experiments with multiple AI models to test their limitations and audience reception. “I work a lot with language as well, so large language models are right up my street when it comes to computational creativity.”ee

Her work has gained international recognition. At the 2022 Islamic Arts Biennale in Jeddah, she co-created an artwork under the banner of Super Artistic AI that generated Al-Qatt Al-Asiri motifs from southern Saudi Arabia. The piece received an Audience Award.

Beyond her artistic practice, AlBaiz is developing an intelligent art advisory system aimed at helping users navigate the Saudi art landscape. Designed as an initial point of contact, the system would guide users through potential pathways before they engage with a human adviser.

Inverting established gender norms, Sarah Albaiz's digital collage reimagines masculinity. Set against a generative backdrop, its core message "real men cry" challenges familial WhatsApp discourses. (Supplied)

“It’s about understanding what role AI plays in the pursuit of what you want,” she said. “When I decided to focus on Qantara and building the advisory, I recognized that many of the systems required would need to be intelligent systems that offload a lot of work from me and the team.”

“When AI is an enabler rather than the end result, it becomes less intimidating because it feels risk-free for the end user,” she added.

Zaytsev echoed this idea, describing AI as a kind of rehearsal space. “Young people practice conversations, explore sensitive topics and organize their thoughts without social risk. This builds emotional clarity and confidence,” he said.

While generative tools such as large language models attract much of the attention, AI’s creative applications extend far beyond text and image generation.

Fairooz Alawami, trained as both an architect and engineer, uses AI to create self-expressive visual works inspired by dance.

Fairooz AlAwami's work. (Supplied)

“My practice is focused on contextualizing movement,” she said. “Because of my architectural training, I work with 3D modeling software called Rhino, which includes a visual coding language. Within that environment, you can also write code in Python, JavaScript or C#.”

Alawami employs OpenPose to analyze videos of her dancing by mapping points across her body. She then applies another computer vision model, MIDAS, which converts images or videos into depth frames. “If OpenPose gives me a skeleton, MIDAS gives me depth,” she explained. The resulting data is fed into 3D modeling software, where it is refined and manipulated into finished artworks.

She began dancing at a young age. “I didn’t find it, it found me,” she said. Movement later became the foundation of her artistic practice, leading to her first major project around three years ago while completing her master’s degree using the Grasshopper plugin. At the time, the workflow was slow and fragmented, but the arrival of ChatGPT helped streamline the process by making it easier to write and learn code.

Fairooz AlAwami's work. (Supplied)

“I think my love for dance and my love for art and design came together in a way that felt uniquely me,” she said. “Once I found that space, I just ran with it. It is my singular voice.”

Her work also draws heavily on cultural and musical heritage. One recent project was inspired by folklore referenced in the iconic song “Al Leila wa Leila” by Umm Kulthum. Alawami extracted musical stems from the track and mapped them to characters within the narrative. “The vocals were Shahrazad, the storyteller, and each stem represented a different narrative element,” she said. Earlier works were influenced by Islamic architecture and the geometric patterns found throughout Saudi Arabia and the wider Arab world.

“There are some incredible artists using generative AI to do very impressive things, and I don’t think I fall into that camp,” she said. “For me, AI is more like a skills-gap tool that helps me reach where I want to go.

“As humans, whether we realize it or not, the act of creating feeds us in some way. Lowering the barrier to entry makes creativity less intimidating.”

Opinion

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Today, Saudi Arabia’s creative sector is supported by expanding national infrastructure. Initiatives such as the Cultural Scholarship Program place Saudi students in more than 60 universities worldwide, spanning disciplines from archaeology and literature to design, filmmaking and culinary arts. In parallel, the Kingdom launched the SAMAI initiative last year, aiming to equip 1 million Saudis with the skills needed to engage confidently in an AI-driven world.

Within Vision 2030, culture, tourism, digitalization and AI are treated as strategic sectors rather than peripheral concerns. As Saudi Arabia develops its creative economy as a form of soft power, its youth are becoming increasingly digitally fluent. AI tools are now embedded within creative workflows, enabling a new generation to explore heritage, remix traditional aesthetics and develop narratives that resonate on a global stage.