Saudi to hand out billions to ease inflation pain

Date:

Saudi to hand out billions to ease inflation pain

Saudi Arabia announced Monday it was disbursing billions of dollars directly to citizens to ease the effects of inflation amid growing online expressions of frustration over rising prices.

FILE: A handout picture released by the Jordanian Royal Palace shows Saudi Crown Prince Mohammed bin Salman smiling after receiving al-Hussein bin Ali medal, the highest civilian medal in Jordan awarded to heads of state and royalty, at al-Husseiniya Palace in the capital Amman on 21 June 2022. Yousef ALLAN / Jordanian Royal Palace / AFP
  • Saudi Arabia
  • Rising cost of living
  • Crown Prince Mohammed bin Salman

RIYADH – Saudi Arabia announced Monday it was disbursing billions of dollars directly to citizens to ease the effects of inflation amid growing online expressions of frustration over rising prices.

“A generous royal order was issued approving the allocation of financial support in the amount of 20 billion riyals (around $5.3 billion) to face the repercussions of rising prices globally,” the official Saudi Press Agency reported, attributing the decision to King Salman.

Roughly half that amount would come via direct cash transfers to social security beneficiaries, the SPA report said.

Earlier on Monday, Crown Prince Mohammed bin Salman “stressed the need to take into account the neediest citizens in the face of international developments that resulted in rising costs of some basic needs”, a separate SPA report said.

Chairing a meeting of the kingdom’s economic affairs council, Prince Mohammed, the de facto ruler, reportedly made the point that government offices must respond to global supply chain issues and rising prices to protect consumers’ interests.

Saudi Arabia, the world’s top oil exporter, has not been hit as hard by inflation as other countries in the region.

The most recent consumer price index for Saudi Arabia showed an annual increase of 2.2% in May, with prices up 4.2 % for food and beverages and 4% for transport.

Nevertheless, the kingdom’s tightly controlled social media landscape has featured more frequent griping about rising prices in recent weeks, including Twitter hashtags calling for a boycott of eggs and a well-known dairy company.

Saudi Arabia’s economy has generally performed well this year, especially since Russia’s invasion of Ukraine sent energy prices soaring.

GDP is expected to grow by 7.6% in 2022, the International Monetary Fund said in April.

In early May, the Gulf monarchy reported its fastest economic growth rate in a decade, as a surging oil sector fuelled a 9.6% rise in the first quarter over the same period of 2021.

Saudi Arabia’s announcement came as the United Arab Emirates similarly said it was doubling the budget for its social security programme to 28 billion dirhams (about $7.6 billion) after a rise in fuel prices.

,

Saudi to hand out billions to ease inflation pain

Saudi Arabia announced Monday it was disbursing billions of dollars directly to citizens to ease the effects of inflation amid growing online expressions of frustration over rising prices.

FILE: A handout picture released by the Jordanian Royal Palace shows Saudi Crown Prince Mohammed bin Salman smiling after receiving al-Hussein bin Ali medal, the highest civilian medal in Jordan awarded to heads of state and royalty, at al-Husseiniya Palace in the capital Amman on 21 June 2022. Yousef ALLAN / Jordanian Royal Palace / AFP
  • Saudi Arabia
  • Rising cost of living
  • Crown Prince Mohammed bin Salman

RIYADH – Saudi Arabia announced Monday it was disbursing billions of dollars directly to citizens to ease the effects of inflation amid growing online expressions of frustration over rising prices.

“A generous royal order was issued approving the allocation of financial support in the amount of 20 billion riyals (around $5.3 billion) to face the repercussions of rising prices globally,” the official Saudi Press Agency reported, attributing the decision to King Salman.

Roughly half that amount would come via direct cash transfers to social security beneficiaries, the SPA report said.

Earlier on Monday, Crown Prince Mohammed bin Salman “stressed the need to take into account the neediest citizens in the face of international developments that resulted in rising costs of some basic needs”, a separate SPA report said.

Chairing a meeting of the kingdom’s economic affairs council, Prince Mohammed, the de facto ruler, reportedly made the point that government offices must respond to global supply chain issues and rising prices to protect consumers’ interests.

Saudi Arabia, the world’s top oil exporter, has not been hit as hard by inflation as other countries in the region.

The most recent consumer price index for Saudi Arabia showed an annual increase of 2.2% in May, with prices up 4.2 % for food and beverages and 4% for transport.

Nevertheless, the kingdom’s tightly controlled social media landscape has featured more frequent griping about rising prices in recent weeks, including Twitter hashtags calling for a boycott of eggs and a well-known dairy company.

Saudi Arabia’s economy has generally performed well this year, especially since Russia’s invasion of Ukraine sent energy prices soaring.

GDP is expected to grow by 7.6% in 2022, the International Monetary Fund said in April.

In early May, the Gulf monarchy reported its fastest economic growth rate in a decade, as a surging oil sector fuelled a 9.6% rise in the first quarter over the same period of 2021.

Saudi Arabia’s announcement came as the United Arab Emirates similarly said it was doubling the budget for its social security programme to 28 billion dirhams (about $7.6 billion) after a rise in fuel prices.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Share post:

Subscribe

Popular

More like this
Related

Baby, it’s cold outside! But why SO cold? An expert explains…

Baby, it's cold outside! But why SO cold? An expert explains... It might feel extraordinarily cold at the moment, but climatologist Francois Engelbrecht says it's what's to be expected. Picture: Pixabay.com Global warming Climate change CAPE TOWN COLD FRONT Email Print Tweet Share Sara-Jayne Makwala King | one hour ago Refilwe Moloto speaks to Professor Francois Engelbrecht

Mbeki rejects Malema claims that he’s working with Fraser to topple Ramaphosa

Mbeki rejects Malema claims that he's working with Fraser to topple Ramaphosa Speaking during a briefing on the Phala Phala saga and steps to remove the president from office earlier this week, Malema reportedly said that Fraser was working with Mbeki, who he said had an axe to grind over his early departure as president.

Hillary Gardee murder: Release of fifth accused not a setback – police

Hillary Gardee murder: Release of fifth accused not a setback - police The man was released after his matter was not on the court roll. FILE: Hillary Gardee. Picture: EFF/Twitter Hillary Gardee Hillary Gardee murder Email Print Tweet Share Kgomotso Modise | one hour ago JOHANNESBURG - Mpumalanga police say they remain confident that they have a

Children not usually the targets of ransom kidnappings – Missing Children SA

Children not usually the targets of ransom kidnappings - Missing Children SA Missing Children South Africa's Bianca van Aswegen says kidnappings are escalating daily in South Africa. Shanawaaz Asghar. Picture: Kensington Community Policing Forum Missing Children South Africa Child kidnappings Shanawaaz Asghar Email Print Tweet Share Sara-Jayne Makwala King | one hour ago Africa Melane speaks to