Saudi Arabia’s inflation holds steady at 1.6% in May: GASTAT  

According to the report by the General Authority for Statistics, expenses for housing, water, electricity, gas, and other fuels increased by 0.4 percent month-on-month in May.  Shutterstock
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Updated 16 June 2024
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Saudi Arabia’s inflation holds steady at 1.6% in May: GASTAT  

RIYADH: Saudi Arabia’s annual inflation rate held steady at 1.6 percent for the third consecutive month in May, driven by rising housing rents, according to official data. 

The General Authority for Statistics report stated that the Consumer Price Index increased due to a 10.5 percent rise in actual housing rents, which included a 14.3 percent surge in apartment rents. 

“This increase had a significant impact on maintaining the annual inflation rate for May 2024, due to the substantial weight of this category at 21 percent,” said the authority in the report.  

Similarly, costs of food and beverages increased by 1.4 percent, driven by a 6.9 percent rise in vegetable prices.  

On the other hand, prices of furnishing and home equipment decreased by 3.8 percent.  

Similarly, expenses for clothing and footwear decreased by 4 percent year-on-year in May, while transport costs also decreased by 2.4 percent during the same period. 

Monthly inflation  

Meanwhile, the monthly inflation rate rose marginally by 0.2 percent in May compared to the previous month, driven by changes in housing prices. 

The expenses for housing, water, electricity, gas, and other fuels increased by 0.4 percent month-on-month in May.  

The monthly inflation index was also impacted by expenses for food and beverages, which went up by 0.7 percent in May compared to April.  

Additionally, expenses for restaurants and hotels edged up by 0.2 percent, while costs for personal goods and services increased by 0.1 percent month-on-month in May.  

On the other hand, prices for clothing and footwear dipped by 0.6 percent in May compared to the previous month, while costs for transportation edged down by 0.4 percent.  

The report further pointed out that prices of education, furnishing and home equipment, and tobacco products did not show any significant change in May compared to April.  

In May, a report released by Riyad Capital revealed that Saudi Arabia’s inflation rate is expected to average around 2 percent in 2024, with a moderate acceleration to 2.4 percent in 2025.

The Riyad Capital analysis also added that the Kingdom’s non-oil sector is projected to grow at a rate of 4.8 percent in 2024, driven by growth-oriented fiscal policy.

The report further noted that non-oil activities in Saudi Arabia will accelerate further in 2025, with a projected expansion rate of 5.2 percent.

Last year, the International Monetary Fund noted that the likelihood of a rise in headline and core inflation in oil-exporting countries like Saudi Arabia is low.

“Headline and core inflation in many oil-exporting countries like Bahrain, Iraq, Kuwait, Oman, Qatar, and Saudi Arabia remain relatively lower than elsewhere,” said the IMF.

Wholesale price index increases 

In another report, GASTAT revealed that Saudi Arabia’s Wholesale Price Index increased by 3.2 percent in May compared to the same month of the previous year. 

This increase is mainly driven by a 14.5 percent rise in prices of basic chemicals and a 12 percent increase in the costs of refined petroleum products, the authority added. 

Similarly, prices of food products, beverages, tobacco, and textiles rose by 1.8 percent year-on-year in May, due to a 7.4 percent increase in the prices of leather, leather products, and footwear. 

On the other hand, the costs of ores and minerals decreased by 2.8 percent, mainly due to a 2.8 percent decrease in stone and sand prices.

Additionally, agricultural and fishery product expenses experienced a 1.3 percent year-on-year decrease in May, driven by a 2.8 percent decrease in fish and other fishing product prices and a 2.7 percent decline in live animals and animal product prices.

Furthermore, the prices of metal products, machinery, and equipment decreased by 0.4 percent in May compared to the same month of the previous year, attributed to a 6.6 percent decline in the prices of radio, television, and communication equipment and apparatus.

Compared to April, the Kingdom’s WPI decreased by 0.1 percent in May, driven by a 0.3 percent drop in the prices of food products, beverages, tobacco, and textiles. 

This decline resulted from a 1.7 percent decrease in the prices of meat, fish, fruit, vegetables, oils, and fats, and a 0.4 percent decline in the prices of leather, leather products, and footwear.

Similarly, the costs of agriculture and fishery products also decreased by 0.2 percent month-on-month, driven by a 1.6 percent fall in the prices of live animals and animal products.

Compared to April, the prices of other transportable goods declined by 0.1 percent in May, driven by a 0.7 percent decrease in the costs of basic chemicals.

In contrast, the costs of metal products, machinery, and equipment rose by 0.1 percent, as a result of a 1.1 percent increase in the prices of electrical machinery and apparatus.

Average prices rising

Meanwhile, in another report, GASTAT revealed that the prices of Abu Sorra Egyptian oranges increased by 22.70 percent in May compared to the previous month.

Similarly, the prices of local tomatoes and Turkish plums rose by 12.80 percent and 10.33 percent, respectively, in May from April.

Additionally, Indian pomegranates and Pakistani mandarins also experienced notable increases, rising by 10.15 percent and 9.71 percent, respectively.

On the other hand, hotel accommodation prices in Saudi Arabia witnessed a 13.94 percent month-on-month decline.

Similarly, the costs of local melons, Lebanese peaches, and imported onions dipped by 13.30 percent, 11.37 percent, and 9.34 percent, respectively.


The hidden side of clean power: why grid integration matters

Updated 07 March 2026
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The hidden side of clean power: why grid integration matters

  • Exploring the predator’s role in the region’s heritage and ecosystem

RIYADH: As Saudi Arabia expands solar, wind, and battery projects, a critical piece of the sustainability puzzle often goes unseen: grid integration.

Before renewable plants can deliver power, engineers must ensure the grid remains stable, safe, and efficient under new loads. Integrating renewables into existing systems has become one of the toughest — and most crucial — steps toward building a truly sustainable energy network.

Engineers widely consider the electricity grid the largest and most complex machine ever built. As more renewable capacity comes online, managing it is becoming as much a data challenge as an energy one.

“A big share of Saudi Arabia’s electricity is generated from renewables and more projects are connected to the grid each year. This shift changes how the electricity grid is managed on a day-to-day basis,” Saeed Al-Zahrani, general manager of data enterprise storage leader NetApp in Saudi Arabia, told Arab News.

“To add context, traditional generation can usually be adjusted in a controlled way. Wind and solar, however, move with conditions such as cloud cover, dust, temperature and wind speed, meaning supply can rise and fall quickly,” he said.

In this environment, grid integration is less about whether enough electricity can be produced and more about whether operators can see and respond to changes across the network fast enough to maintain stability.

Frequency, voltage, congestion, and reserve margins all become more dynamic. Real-time measurements, accurate forecasting, asset status updates, and weather intelligence must come together into a reliable, unified system view.

“From NetApp’s perspective, this is where the data foundation matters most, because the grid can only act confidently when the information behind the decisions is timely, governed, and reliable,” Al-Zahrani said.

Under Vision 2030, Saudi Arabia aims to generate 50 percent of its energy from renewables — an ambitious target that introduces new technical and operational challenges. Weather variability, cyber threats, and system coordination can all affect grid stability.

“Every device that operates under this control regime that’s connected to the grid is digital nowadays. You have smart inverters, you have sensors, you have energy management systems, and all those devices and systems are potential entry points for attackers,” Charalambos Konstantinou, a professor at KAUST, told Arab News.

As solar capacity grows, ensuring seamless integration into the national grid has become one of the most complex challenges of the energy transition. (SPA)

His lab focuses on maintaining reliable and secure power infrastructure, developing faster and smarter control algorithms capable of responding to sudden changes in the power system.

“This is what we’re working to make sure that those algorithms remain robust. They remain resilient. They remain secure, even if something, maybe an extreme weather event, or a cyber attack, is aiming to disrupt them,” he said.

Rapid digitalization, however, can create vulnerabilities if security measures do not keep pace. In 2012, Aramco experienced the Shamoon attack, a computer virus that affected around 30,000 workstations.

“When you scale fast, security practices typically lack behind deployment, and this is essentially what we focus a lot in my group: making sure that internet-connected or digital devices cannot be used as an entry point to destabilizing the grid,” Konstantinou said.

One particularly concerning threat involves load-altering attacks, which can disrupt power systems without requiring deep penetration of the grid itself.

“If an attacker is able to control a large amount of what we call internet connected high voltage devices — think HVAC systems, air conditioning systems, water heaters, electric vehicle chargers — and is able to switch them on and off at the same time, simultaneously, then he or she can create a certain imbalance between generation and demand, and then the grid (becomes) very difficult to handle,” he said.

A view of an Aramco refinery in the Eastern Province. (Supplied)

Such disruptions could potentially trigger widespread blackouts.

Beyond cybersecurity risks, the physical environment also presents challenges. Saudi Arabia’s relatively consistent weather can be an advantage for renewable energy production, but factors such as dust accumulation on solar panels and thermal stress on inverters can still affect performance.

Testing technologies under local conditions — including extreme heat, network behavior, and the mix of generation assets — is essential before large-scale deployment. Equally important are intelligent coordination frameworks that allow flexible energy assets to work together while optimizing energy use across industries.

Renewable-heavy grids across Saudi Arabia and neighboring countries increasingly depend on real-time data from SCADA systems, substation automation, and weather monitoring to balance supply and demand. While these continuous data flows improve efficiency, they also introduce new risks, including potential system disruption and data manipulation.

Vasily Dyagilev, regional director for the Middle East, Russia and CIS at Check Point Software Technologies Ltd., highlighted the scale of these vulnerabilities.

Vasily Dyagilev, regional director of Check Point Software Technologies Ltd. for the Middle East. (Supplied)

“In Saudi Arabia, 58 percent of organizations have experienced information disclosure vulnerabilities, while remote code execution and authentication bypass remain significant threats. The complexity of managing legacy operational technology networks alongside modern cloud-based systems and third-party integrations makes it difficult for utilities to maintain full visibility over their risk landscape.

“The region has also seen high-profile incidents where attacks on SCADA systems led to operational disruptions, highlighting the fragility of critical infrastructure. Effective exposure management, including continuous vulnerability discovery and prioritized remediation based on operational risk, is now recognized as essential for maintaining grid stability and protecting the integrity of real-time data streams.”

Alongside cyber and operational risks, uncertainty in weather patterns remains a key variable in renewable power generation.

Omar Knio, another professor at KAUST, studies how atmospheric processes influence renewable energy systems through uncertainty quantification and climate modeling. Dust particles originating in the Arabian Peninsula, for instance, can travel thousands of kilometers and influence weather patterns across South Asia.

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“Phenomena at tiny little scales end up, through teleconnections, making very important contributions to weather patterns and to the climate as far as renewables themselves, because these phenomena affect the solar and wind potentials, they’re extremely important to predict accurately,” Knio said.

“The presence of dust in the atmosphere and cloud cover affect the output of solar panels or solar plants, and similar phenomena happen to wind, and that's why they are really challenging. It's important to be able to predict them as accurately as we can.”

Maintaining a stable renewable grid requires both short-term and long-term forecasting. Hourly predictions are essential for balancing supply and demand, while longer-term projections help planners prepare infrastructure and storage.

Artificial intelligence is increasingly helping researchers build models that forecast weather patterns, simulate thermal behavior in buildings, and analyze industrial energy use. In areas where detailed physical models are limited, AI also helps uncover patterns in human behavior and electricity consumption.

“An example is power demand, consumer behavior, or changes in patterns that have to do with the day of the week, whether it's a weekend, a holiday season, whether it's during harsh weather, or it's during Ramadan: how do these patterns change? And artificial intelligence is really bringing the capability for us to represent and forecast these very complex phenomena,” Knio said.

As renewable energy penetration approaches higher levels, the system becomes more sensitive to fluctuations and extreme events.

“There comes a point where we start having a very dramatic rise in the need for storage capabilities. And the important aspect of why our fuel is important. We can make them cleaner, but they’re wonderful in the sense that they are plentiful right now. They are cheap, but more importantly, they are quite economical to store after. After fuels come nuclear power. So it’s really that storage capability. As we approach 100 percent, the need for storage becomes extremely heightened,” Knio said.