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Turkey: Inflation Rises to Highest Level in 14 Years

Merchants chat in front of a currency exchange office at the historical Grand Bazaar, known as the Covered Bazaar, in Istanbul, Turkey, January 12, 2017. Picture taken January 12, 2017. (File Photo: Reuters)
Merchants chat in front of a currency exchange office at the historical Grand Bazaar, known as the Covered Bazaar, in Istanbul, Turkey, January 12, 2017. Picture taken January 12, 2017. (File Photo: Reuters)
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Turkey: Inflation Rises to Highest Level in 14 Years

Merchants chat in front of a currency exchange office at the historical Grand Bazaar, known as the Covered Bazaar, in Istanbul, Turkey, January 12, 2017. Picture taken January 12, 2017. (File Photo: Reuters)
Merchants chat in front of a currency exchange office at the historical Grand Bazaar, known as the Covered Bazaar, in Istanbul, Turkey, January 12, 2017. Picture taken January 12, 2017. (File Photo: Reuters)

Turkish President Recep Tayyip Erdogan has sought to calm fears about the country's economy, which has shown negative signs recently, stressing Ankara will successfully overcome all economic challenges.

Meanwhile, official data showed that Turkey’s annual inflation rose to 15.85 in July.

On Friday, Erdogan unveiled the first 100-day action plan of Turkey's first-ever Cabinet under the new presidential system.

"Today, we share our first 100-day action plan with you," Erdogan said at the meeting in Ankara.

The plan includes 400 projects worth $9 billion that will boost the new system, according to Erdogan.

He stressed that these projects will not be an additional burden on the budget.

Erdogan noted that 48 out of the 400 projects would deal with the defense industry, which Turkey has no second thoughts on.

Consumer prices in Turkey rose 15.85 percent in July year-on-year, the Turkish Statistical Institute (TurkStat) announced Friday. Analysts had expected inflation to rise to 16.3 percent.

The Turkish government predicted an inflation rate of 14.64 percent this year, while the Central Bank of the Republic of Turkey (CBRT) revised on Tuesday its year-end inflation forecast to 13.4 percent from 8.4 percent in a report released last April. This caused a new decline in the Turkish lira, which has suffered losses since the beginning of this year amounting to more than 25 percent of its value.

The Turkish lira has been hit hard following a US decision to impose sanctions on Turkish Ministers of Justice and Interior over the terrorism trial of US pastor Andrew Brunson, who is accused of supporting a group Ankara blames for the 2016 failed coup. Brunson is also on trial for political and military espionage.

Turkish Finance Minister Berat Albayrak said US sanctions on Turkey were unacceptable and would have a limited impact on the economy.

The Minister said Turkey's priority is to solve the issue with the US, a NATO ally, and "ensure that this process is settled through diplomacy and constructive efforts that would be consistent with the relations between the two allied countries."

"Meanwhile, we have initiated a comprehensive plan to achieve our goals of budget discipline, disinflation, and sound and sustainable growth in light of current macroeconomic data," Albayrak said.

On the other hand, official data showed that Turkish exports exceeded $82 billion during the first half of 2018, compared to about $77 billion during same period of last year.

Meanwhile, trade volumes between India and Turkey will reach $10 billion by 2020, announced Turkish Foreign Minister Mevlut Cavusoglu on Twitter.

The announcement came after Cavusoglu met with his Indian counterpart Vijay Kumar Singh in Singapore on the sidelines of the 51st ASEAN Foreign Ministers’ Meeting on Thursday.

“Investment and trade between Turkey and India are increasing. We will work together to increase bilateral trade volume to $10 billion from last year’s $6.9 billion,” added the Minister.

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Saudi Real Estate Market Maintains Investment Momentum Despite War Fallout

Residential developments in Saudi Arabia (Ministry of Municipalities and Housing)
Residential developments in Saudi Arabia (Ministry of Municipalities and Housing)
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Saudi Real Estate Market Maintains Investment Momentum Despite War Fallout

Residential developments in Saudi Arabia (Ministry of Municipalities and Housing)
Residential developments in Saudi Arabia (Ministry of Municipalities and Housing)

Saudi Arabia's real estate market continues to attract investment despite geopolitical challenges weighing on economic activity worldwide, supported by new housing developments and efforts to expand residential supply.

The Ministry of Municipalities and Housing announced that more than 15,000 residential land plots had been made available through the Sakani platform across the Kingdom between the beginning of 2026 and the end of October, alongside additional projects launched by private-sector developers.

The developments underscore the sector's continued momentum and its importance to the Saudi economy.

Government initiatives and private-sector projects aim to expand housing supply and meet growing demand, reinforcing real estate's position as a key driver of economic growth and diversification.

Strong domestic demand and ongoing urban development projects continue to underpin the market's appeal, attracting investment from both Saudi and international investors.

Against a backdrop of geopolitical uncertainty and war-related disruptions to trade, supply chains, financing costs and construction expenses, the real estate sector has gained importance as an industry driven largely by domestic demand and capable of sustaining economic activity.

Private-Sector Investment

Despite mounting global economic volatility and geopolitical tensions, Saudi Arabia's real estate market continues to attract international investment, supported by clear economic policies, expanding development opportunities and strong housing demand.

Real estate developer Arada recently announced its entry into the Saudi market through a partnership with local company XTOPIA, backed by a SAR 50 billion ($13.3 billion) portfolio of land and development opportunities.

The partnership's first project is a SAR 14 billion residential development in Riyadh's Al Rimal district.

Riyadh Region Municipality, the Ministry of Municipalities and Housing, and the National Center for Privatization & PPP also recently announced the launch of the expression of interest, prequalification and proposal submission stages for a joint land investment project.

The initiative involves developing a municipal land plot in northern Riyadh through a 50-year partnership with the private sector, marking the municipality's first project under the joint investment model.

Real estate specialists described the initiative as an important step toward enabling private investors to develop property assets into sustainable projects with significant economic value.

They said the extended investment period would encourage developers to improve construction quality and services, strengthen project feasibility, diversify real estate offerings and increase supply in one of the capital's most expensive neighborhoods.

Balancing the Real Estate Market

The importance of releasing more residential land lies in achieving greater balance in the property market, a government objective outlined by Crown Prince and Prime Minister Mohammed bin Salman.

The strategy seeks to increase housing supply by making more land available, broadening the options accessible to Saudi citizens and enabling more households to move from searching for a home to building and owning one.

Increasing the availability of residential land, particularly in cities and governorates experiencing rising demand, could ease pressure on land prices over the medium term, provided that plot locations and sizes correspond to actual market needs.

The release of additional land also creates opportunities for real estate developers, contractors, engineering firms and building materials suppliers to benefit from anticipated demand for construction projects.

As a result, businesses across the real estate and construction supply chain could see stronger activity despite the impact of the geopolitical crisis on other economic sectors in the region.

The initiative also expands housing choices, supports efforts to increase homeownership rates and improve quality of life, and encourages urban development beyond major metropolitan centers.

Lowering Prices

Real estate developer Ahmed Omar Basoudan believes the main challenge facing Saudi Arabia's property market in the coming period will not simply be increasing the number of land plots and housing units available.

Rather, he said, the priority must be ensuring that homes reach buyers at prices they can afford, while providing adequate infrastructure and services and keeping development and construction costs under control.

Speaking to Asharq Al-Awsat, Basoudan explained that genuine balance in the real estate market depends on the availability of housing that meets buyers' needs in terms of price, location and quality, rather than simply increasing overall supply.

He said the release of more than 15,000 residential land plots during the first 10 months of the year, together with recently announced private-sector projects, reflected the government's continued commitment to expanding housing supply and providing more residential options.

Basoudan stressed that the latest real estate developments represent an important step toward addressing one of the market's most pressing challenges: achieving a sustainable balance between supply and demand, particularly amid the Kingdom's population growth and continued urban expansion.

Business

Saudi Stocks Rebound 0.9%, Recouping Previous Session's Losses

An investor monitors stock market data on a screen at the Saudi Exchange (Tadawul) in Riyadh (Reuters)
An investor monitors stock market data on a screen at the Saudi Exchange (Tadawul) in Riyadh (Reuters)
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Saudi Stocks Rebound 0.9%, Recouping Previous Session's Losses

An investor monitors stock market data on a screen at the Saudi Exchange (Tadawul) in Riyadh (Reuters)
An investor monitors stock market data on a screen at the Saudi Exchange (Tadawul) in Riyadh (Reuters)

Saudi stocks closed higher on Monday, recovering some of the losses sustained in the previous session as heavyweight shares strengthened and the banking sector advanced.

The benchmark Tadawul All Share Index (TASI) rose 0.90% to close at 10,106 points, gaining 90 points. Total trading value reached approximately SAR 3.5 billion ($933 million).

The index had fallen 0.8% on Sunday amid selling pressure on heavyweight stocks.

Anaam International Holding Group, Fitaihi Holding Group and Raoom were among the session's top gainers, rising between 7% and 9% to close at SAR 11.93, SAR 2.11 and SAR 72.30, respectively.

On the losing side, Almunajem Foods led the declines, shedding 9.20% to SAR 49.94, followed by Saudi Paper Manufacturing Co., which fell 6.18% to SAR 48.88, and Alamar Foods, which dropped 4.63% to SAR 44.06.

At the sector level, banks led the gains, advancing 1.60%, supported by a 2.06% rise in Bank AlJazira shares, which closed at SAR 10.89.

Business

Tesla to Refund Many Cybertruck Deposits as Demand Exceeds Production, Musk Says

Tesla Cybertruck electric vehicles sit parked in a storage lot in San Diego, California on April 11, 2025. (AFP)
Tesla Cybertruck electric vehicles sit parked in a storage lot in San Diego, California on April 11, 2025. (AFP)
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Tesla to Refund Many Cybertruck Deposits as Demand Exceeds Production, Musk Says

Tesla Cybertruck electric vehicles sit parked in a storage lot in San Diego, California on April 11, 2025. (AFP)
Tesla Cybertruck electric vehicles sit parked in a storage lot in San Diego, California on April 11, 2025. (AFP)

Tesla will have to refund Cybertruck deposits for many customers as orders far exceed production capacity, CEO Elon Musk said, following last week's announcement that the electric vehicle maker is winding down the pickup truck's production at its Texas factory.

"We will try ‌to make ‌as many as ‌possible ⁠before shutting down the ⁠line in about 8 months, but will have to return deposits for a lot of people," the billionaire said in a post on X on Monday.

The comments ⁠come after Musk said ‌Tesla would ‌add an extra production shift to fulfill outstanding ‌Cybertruck orders before dismantling the production ‌line next year to expand output of its Cybercab robotaxi.

The production winddown is slated for mid-2027, Musk announced on ‌Friday, with the resources being redirected to the Cybercab, a vehicle ⁠central ⁠to the automaker's autonomous-driving ambitions.

Tesla began delivering the Cybertruck in late 2023, but demand has fallen far short of Musk's expectations. US sales fell 48% to 20,237 units last year, according to Kelley Blue Book, well below Musk's earlier projection that annual Cybertruck sales could reach 250,000 vehicles.