‘Sacred Duty’: Inflation Eats Into Turkey’s Muslim Feast

Turks who make a living raising animals and selling them on open markets fear their business model may soon collapse Yasin AKGUL AFP
Turks who make a living raising animals and selling them on open markets fear their business model may soon collapse Yasin AKGUL AFP
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‘Sacred Duty’: Inflation Eats Into Turkey’s Muslim Feast

Turks who make a living raising animals and selling them on open markets fear their business model may soon collapse Yasin AKGUL AFP
Turks who make a living raising animals and selling them on open markets fear their business model may soon collapse Yasin AKGUL AFP

With inflation in Turkey galloping, the sheep Gul Er buys every year for the Muslim festival of sacrifice in Istanbul looks agonizingly out of reach.

Prices have doubled or even tripled since President Recep Tayyip Erdogan began an unorthodox economic experiment last year that has seen Turks' living standards suffer.

The young mother hopes to bargain down the price on one of the skimpiest-looking animals at a livestock fair held under white tents in a conservative corner of the city before the Kurban Bayrami (Eid al-Adha in Arabic) holiday.

"It is a sacred duty," she said of buying a sheep, which along with oxen and goats are sacrificed in the name of Allah, with the meat traditionally shared with the poor, friends and neighbors.

"But this year, prices are unaffordable," Er said, the stench of thousands of animals mixing with the sounds of haggling in the heavy summer air, ahead of Saturday's first full day of festivities.

According to AFP, annual inflation in Turkey has officially reached 78.6 percent, although economists and many ordinary Turks doubt government data.

Even if the official figures are to be believed, that is higher than in any other emerging market and nearly 10 times the record levels rocking the European Union, where the cost of living is unleashing political crises.

An independent survey prepared by the ENAG group -- and believed by most Turks -- puts the annual inflation rate at 175 percent.

Besides clouding Erdogan's chances in next year's election, these figures spell trouble for the merchants at the Istanbul animal fair.

Turkey's agricultural chambers union chief Semsi Bayraktar expects sales to fall by a quarter this year.

Galip Toklu, a breeder who came to the 40,000-square-metre (10-acre) fair from the Black Sea city of Samsun, listed the ways inflation snowballs into seemingly endless problems.

The cost of animal feed has quadrupled while the amount he pays to drive his livestock to Istanbul has tripled since the last Kurban Bayrami, forcing Toklu to double the price of his meat.

"Last year, I sold 500 kilos (1,100 pounds) of beef for 20,000 liras. This year, I set my prices at 45,000 liras," he said.

Yet few can now afford Toklu's beef, while selling it any cheaper could put him out of business.

"Customers are unavoidably upset," he said, his face sullen under a wide-brimmed hat.

While this year's animal fair looks huge, its 160 tents are a fraction of the 500 erected in past years.

As the fair winds down, breeder Sinas Ates looks despondent, having failed to make a single sale in two days. Livestock farming in Turkey is "finished", he grumbled.

Just like the sacrifice of sheep, Erdogan's economic experiment -- dubbed "Erdonomics" by skeptical global markets -- is also linked to his faith.

Erdogan cites Islamic proscriptions on usury to justify his refusal to raise interest rates to fight inflation.

High interest rates cause prices to rise, according to Erdogan's logic, which contradicts accepted economic orthodoxy.

So Erdogan has pushed the central bank to set interest rates even lower. Analysts at Capital Economics in London see the possibility of a crash of the lira as "a major risk".

At the market, Salih Yeter has responded to the crisis by coming out to look for the perfect sheep with seven friends, who will all contribute to the purchase.

"People usually can't afford to eat meat," the 57-year-old said, adding that giving away meat to the poor is particularly important in times of trouble.

The price of food has soared by 93 percent in the past year, according to official data, with meat prices pushing even higher.

This is especially painful for Er, whose daughter has a metabolic condition that restricts her to a meat diet.

"I can't even respect my daughter's diet," the mother whispered.

But respect for the holy holiday's traditions is binding, said Selahattin Kose, a "hajji" (one who has made the pilgrimage to Makkah), from the eastern city of Erzurum.

"Prices have doubled, but we have to deal with it," Kose said. "It's Allah's orders."



Saudi Home Ownership Rises to 66 Percent on Decade of Reforms

The Nesaj Town project in the Al Wajiha suburb of Dammam, one of the Sakani housing program projects developed in partnership with the private sector. (SPA)
The Nesaj Town project in the Al Wajiha suburb of Dammam, one of the Sakani housing program projects developed in partnership with the private sector. (SPA)
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Saudi Home Ownership Rises to 66 Percent on Decade of Reforms

The Nesaj Town project in the Al Wajiha suburb of Dammam, one of the Sakani housing program projects developed in partnership with the private sector. (SPA)
The Nesaj Town project in the Al Wajiha suburb of Dammam, one of the Sakani housing program projects developed in partnership with the private sector. (SPA)

Saudi Arabia has raised home ownership among its citizens to 66.24 percent over the past decade through regulatory reforms, expanded mortgage financing and digital housing platforms under the Kingdom’s Vision 2030 program.

The increase, up from 47 percent before the launch of Vision 2030, reflects a government push to make housing a development priority through reforms aimed at increasing supply, improving financing access and reducing wait times for home-buyers.

Policies under the Housing Program, one of Vision 2030’s initiatives, helped cut what were once years-long waits for support into a streamlined process backed by digital platforms and financing solutions. More than 851,000 Saudi families have become homeowners through support programs, according to official figures.

The housing and real estate sectors have undergone broad changes in recent years, driven by regulatory and legislative reforms, expansion in mortgage finance and wider residential options aimed at creating a more balanced property market.

Vision 2030 initially targeted raising Saudi family home ownership to 60 percent by 2020, a goal it surpassed.

Authorities have also moved to address supply constraints and market distortions, particularly in Riyadh, where recent directives included doubling housing developments north of the capital and lifting restrictions on development across more than 81 square kilometers of land.

Plans also call for supplying between 10,000 and 40,000 serviced residential plots annually over five years at prices capped at SAR 1,500 per square meter.

Additional measures included regulations governing landlord-tenant relations in Riyadh, amendments to the Kingdom’s white land tax system and expanded monitoring of property prices.

Efforts to improve land and property data also pushed Saudi Arabia’s land and property coverage indicator to 53 percent, above a 45 percent target.

Mortgage lending has expanded sharply alongside the reforms. Outstanding residential mortgages to individuals exceeded SAR 907 billion ($241 billion) in the third quarter of 2025.

Housing contracts topped one million, while land financing contracts exceeded 74,000. Self-build contracts surpassed 286,000 last year, while contracts for ready-built homes exceeded 534,000. Off-plan sales contracts topped 114,000.

A broader range of housing products, including land, off-plan developments, ready-built units and self-build options, has expanded choices for buyers, while digital platforms have simplified access and financing mechanisms have sought to ease costs for households.

Furthermore, the reforms have helped reshape a sector once marked by supply shortages and long waiting periods into a more efficient system better able to meet demand.

The housing push has also been tied to broader Vision 2030 goals to improve living standards and increase private-sector participation in development.


LNG Tanker Orders Gain Pace Despite Mixed Outlook from Iran War

A drone view shows the Bahamas‑flagged LNG tanker Nohshu Maru sailing through the Panama Canal as it operates at top capacity, with the war in Iran boosting demand from owners and operators of liquefied natural gas vessels, in Gamboa City, Panama, March 24, 2026. (Reuters)
A drone view shows the Bahamas‑flagged LNG tanker Nohshu Maru sailing through the Panama Canal as it operates at top capacity, with the war in Iran boosting demand from owners and operators of liquefied natural gas vessels, in Gamboa City, Panama, March 24, 2026. (Reuters)
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LNG Tanker Orders Gain Pace Despite Mixed Outlook from Iran War

A drone view shows the Bahamas‑flagged LNG tanker Nohshu Maru sailing through the Panama Canal as it operates at top capacity, with the war in Iran boosting demand from owners and operators of liquefied natural gas vessels, in Gamboa City, Panama, March 24, 2026. (Reuters)
A drone view shows the Bahamas‑flagged LNG tanker Nohshu Maru sailing through the Panama Canal as it operates at top capacity, with the war in Iran boosting demand from owners and operators of liquefied natural gas vessels, in Gamboa City, Panama, March 24, 2026. (Reuters)

Global orders to build liquefied natural gas carriers (LNGC) are set to rebound this year after a 2025 slump as growing LNG output and vessel fuel efficiency drive demand, industry executives and analysts say.

The rise in orders is offsetting concerns that supply disruptions from the US-Iran war may reduce near-term shipping demand and pressure freight rates.

Since late last year, shipbuilders in South Korea and China have received more orders, with 35 new LNGC builds contracted in the first quarter, according to consultancies Poten & Partners and Drewry.

By comparison, 37 LNGCs were ordered in all of 2025, with a record 171 orders placed in 2022, Drewry data shows. Each tanker costs $250 million-$260 million, and takes over three years to build.

Upcoming LNG production in the US, Africa, Canada and Argentina will generate tanker demand, along with a push towards fuel efficiency and accelerated vessel demolitions, said Pratiksha ‌Negi, Drewry's lead ‌analyst for LNG shipping, with steam turbine and diesel-electric carriers expected to be phased out.

FLEXIBLE ‌US ⁠VOLUMES

The global LNGC ⁠fleet numbers over 700 vessels, which handle the more than 400 million tons per annum (mtpa) of LNG supply.

Some 72 mtpa of new LNG capacity was approved globally last year, and more than 120 mtpa of new US LNG supply is coming to market in the next 3-4 years, said Fraser Carson, principal analyst, global LNG at Wood Mackenzie.

The growth of US LNG and flexible LNG supply creates trading patterns that require more shipping, he said.

US LNG is typically sold on a free-on-board basis with destination flexibility, allowing mid-voyage diversions that can tie up vessels for longer.

Japan's Mitsui O.S.K. Lines, the ⁠world's largest LNGC fleet owner with 107 vessels, expects US LNG supply investment to spur ‌tanker orders, CEO Jotaro Tamura said.

The company plans to grow its ‌LNGC fleet to approximately 150 vessels by around 2035.

Meanwhile, the demolition of steam-propelled LNGCs has accelerated since 2022 to a record ‌15 vessels last year, Drewry data showed, due to poor economics and tighter emissions regulations.

A proposed framework by the ‌International Maritime Organization to cut shipping emissions is also driving demand for new builds, said Uma Dutt, vice president, LNG at global ship management firm Anglo-Eastern, as the industry switches to dual-fuel vessels that can run on LNG.

WAR COMPLICATES OUTLOOK

The Iran war, however, presents conflicting signals for LNG shipping. Supply disruptions are pushing Asian LNG buyers towards alternative sources like Atlantic basin supply, increasing travel distances ‌for ships. It could also boost demand for LNG projects elsewhere, lifting overall demand for more carriers, said Wood Mackenzie's Carson.

But on the other hand, the war ⁠has also disrupted LNG flows through ⁠the Strait of Hormuz and sidelined 12.8 mtpa of Qatari capacity for three to five years, which could curb shipping demand and weigh on freight rates at a time where an "avalanche" of ship supply is already coming, he said.

Qatar, which operates over 100 LNGCs, will add 70-80 new builds over the next 3-4 years while the UAE's ADNOC is expected to double its fleet to 18 within 36 months, said Carson.

"Most of these new build vessels were earmarked to serve under-construction LNG projects that are now facing delays," he said.

"The longer those delays persist, the more likely it is that these ships are offered to the market on sublet arrangements, softening rates considerably."

Poten & Partners and Drewry expect a record 90-100 LNGCs to be delivered this year, up from 79 in 2025.

However, Drewry's Negi said seven of nine LNGCs initially scheduled for delivery this year and now pushed back to 2027-28 are linked to QatarEnergy.

Poten & Partners senior LNG analyst Irwin Yeo said some firms may delay placing big new build orders due to uncertainties triggered by the war.

"Market uncertainty and rising shipbuilding costs, including labor and raw materials amid the current Middle East crisis could deter some from placing orders."


Saudi Banks Post Record Quarterly Profits of $6.4 Billion

A view of the King Abdullah Financial District in Riyadh. (SPA)
A view of the King Abdullah Financial District in Riyadh. (SPA)
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Saudi Banks Post Record Quarterly Profits of $6.4 Billion

A view of the King Abdullah Financial District in Riyadh. (SPA)
A view of the King Abdullah Financial District in Riyadh. (SPA)

Saudi Arabia’s banking sector reinforced its role as a pillar of the national economy, posting a record start to 2026 with unprecedented first-quarter profits.

The Kingdom’s 10 listed banks posted combined net profit of $6.4 billion (SAR 23.95 billion) in the first quarter, up 7.6 percent from a year earlier, underscoring the sector’s ability to convert momentum generated by Vision 2030 into sustained financial gains.

The performance was driven by strong results from major lenders including Saudi National Bank, Al Rajhi Bank, Riyad Bank, Saudi Awwal Bank, Banque Saudi Fransi, Arab National Bank, Alinma Bank, Bank Albilad, the Saudi Investment Bank and Bank AlJazira.

Al Rajhi Bank led the sector, with profit rising 14.3 percent to SAR 6.75 billion. The bank attributed the increase to an 18.4 percent rise in net financing and investment income, stronger returns on financing and investment, a 14.4 percent increase in operating income, higher banking fees and foreign exchange income, and lower depreciation expenses.

The Saudi National Bank ranked second, reporting net profit of SAR 6.42 billion, up 6.66 percent. It said growth was driven by a 3.1 percent rise in financing and investment income to SAR 14.8 billion, supported by expansion in its lending portfolio, higher operating income and lower operating expenses, including reduced expected credit-loss provisions.

Riyad Bank held third place with profit of nearly SAR 2.61 billion, up 5.1 percent. The lender cited higher trading income and stronger special commission income, along with lower losses on non-trading investment sales. Lower impairment charges also helped trim operating expenses.

On a quarterly basis, the sector also set a new high, with first-quarter profit up 1.26 percent from the fourth quarter of 2025, when earnings reached $6.31 billion (SAR 23.66 billion).

Structural drivers

Financial markets analyst and member of the Saudi Economic Association Sulaiman Al-Humaid Al-Khaldi told Asharq Al-Awsat the record performance was driven by four main factors: elevated interest rates supporting margins, growth in mortgage and corporate lending linked to mega-projects, improving asset quality and lower provisioning, and government spending tied to Vision 2030 that created new financing opportunities.

The results reflected the resilience of Saudi banking, led by the Al Rajhi and Saudi National Bank, he underlined.

“This performance confirms the strength of the Kingdom’s banking model and its ability to benefit from a positive economic environment, with financing demand from individuals and companies remaining strong,” Al-Khaldi stated.

The sector earned more than SAR 95 billion in 2025, up 16 percent from the previous year, and profits could top SAR 100 billion ($26.6 billion) in 2026, according to the financial analyst.

He added that while possible interest-rate cuts could pressure margins, stronger financing demand and government capital spending should remain key growth drivers.

Economic momentum

Economic analyst and Founder and CEO of G.WORLD Mohamed Hamdy Omar said the record profits reflected the banking sector’s role as a major beneficiary of domestic economic growth.

He told Asharq Al-Awsat that the 7.6 percent rise in profit was driven not by temporary cyclical factors but by sustainable structural trends, notably continued credit growth linked to Vision 2030 projects such as NEOM, alongside expanding mortgage and retail lending.

Banks had also benefited from stronger net interest margins, helped by faster asset repricing than liabilities in recent periods, Omar remarked.

Moreover, diversified revenue streams reduced reliance on interest income, particularly through fees from payments, asset management and digital services, while cost discipline and improving asset quality - reflected in lower defaults and reduced credit provisions - also supported profitability. Digital transformation was delivering measurable gains in operational efficiency, particularly at larger banks.

Omar expected the sector to maintain strong performance in 2026, supported by financing demand and government capital expenditure, although falling rates could gradually pressure profit margins.

Improving conditions in the non-oil economy should also support asset quality, leaving the sector in a position of strength even as growth shifts to a more sustainable pace.