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Saudi Arabia Registers Stable Supply of Ramadan Goods

Retail outlets offer promotional offers during the month of Ramadan (SPA)
Retail outlets offer promotional offers during the month of Ramadan (SPA)
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Saudi Arabia Registers Stable Supply of Ramadan Goods

Retail outlets offer promotional offers during the month of Ramadan (SPA)
Retail outlets offer promotional offers during the month of Ramadan (SPA)

As Islam’s holy month of fasting, Ramadan, begins and global crises like the Russian-Ukrainian conflict and the recent Red Sea crisis unfold, the Saudi market stands strong.

The Kingdom has been able to provide Ramadan goods without affecting consumers.

Despite challenges like population growth and tourism, the Kingdom ensures ample food supplies, unlike many global markets affected by these crises.

Recent data from Saudi Arabia’s General Authority for Statistics shows prices dropping for 70 items and staying steady for 5 out of 169 goods and services.

During a recent tour conducted by Asharq Al-Awsat of retail outlets in the Kingdom, abundant supplies and attractive discounts on food and consumer goods were observed.

Economists credit this stability to Saudi Arabia’s food security strategy, which focuses on increasing local production and reducing waste.

Speaking to Asharq Al-Awsat, Dr. Faisal Al Fadel from the Shura Council highlighted the Kingdom’s clear approach to food security, including supporting local production and encouraging private investment in agriculture.

Investor guarantees provided by the Agricultural Development Fund (ADF) contribute to self-sufficiency in key commodities, he added.

Fahad Al Ghrusan, CEO of Abdul Rahman Al Abd Al Aziz Al Shalhan Trading Company, noted increased consumption, particularly in rice, driven by population growth and tourism.

Sales typically surge during Ramadan, and annual rice exports reach millions of tons, he told Asharq Al-Awsat.

Al Ghrusan highlighted the strength of the Saudi market and its support through government programs to ensure food availability, which has significantly reassured the market.

Government initiatives, including financing imports of key agricultural products, strengthen the Saudi market and ensure food availability.

It is worth noting that since its establishment, the ADF has provided over 60 billion riyals ($16 billion), while also financing the import of targeted agricultural products for food security, such as rice, sugar, soybeans, yellow corn, red meat, cooking oils, and barley.

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Bank of England Cuts Main Interest Rate by a Quarter-point to 4.75%

Bank of England Deputy Governor for Monetary Policy Clare Lombardelli, Bank of England Governor Andrew Bailey, The Bank of England's Head of Media and Stakeholder Engagement Katie Martin and Deputy Governor, Markets and Banking, Dave Ramsden hold the central bank's Monetary Policy Report press conference at the Bank of England, in London, on November 7, 2024. HENRY NICHOLLS/Pool via REUTERS
Bank of England Deputy Governor for Monetary Policy Clare Lombardelli, Bank of England Governor Andrew Bailey, The Bank of England's Head of Media and Stakeholder Engagement Katie Martin and Deputy Governor, Markets and Banking, Dave Ramsden hold the central bank's Monetary Policy Report press conference at the Bank of England, in London, on November 7, 2024. HENRY NICHOLLS/Pool via REUTERS
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Bank of England Cuts Main Interest Rate by a Quarter-point to 4.75%

Bank of England Deputy Governor for Monetary Policy Clare Lombardelli, Bank of England Governor Andrew Bailey, The Bank of England's Head of Media and Stakeholder Engagement Katie Martin and Deputy Governor, Markets and Banking, Dave Ramsden hold the central bank's Monetary Policy Report press conference at the Bank of England, in London, on November 7, 2024. HENRY NICHOLLS/Pool via REUTERS
Bank of England Deputy Governor for Monetary Policy Clare Lombardelli, Bank of England Governor Andrew Bailey, The Bank of England's Head of Media and Stakeholder Engagement Katie Martin and Deputy Governor, Markets and Banking, Dave Ramsden hold the central bank's Monetary Policy Report press conference at the Bank of England, in London, on November 7, 2024. HENRY NICHOLLS/Pool via REUTERS

The Bank of England cut its main interest rate by a quarter of a percentage point on Thursday after inflation across the UK fell below its target rate of 2%.
The bank said its rate-setting panel lowered the benchmark rate to 4.75% — its second cut in three months — though its governor Andrew Bailey cautioned that interest rates would not be falling too fast over coming months.
“We need to make sure inflation stays close to target, so we can’t cut interest rates too quickly or by too much,” he said. “But if the economy evolves as we expect it’s likely that interest rates will continue to fall gradually from here.”
In the year to September, UK inflation stood at 1.7%, its lowest level since April 2021 and below the central bank’s target rate of 2%, The Associated Press reported.
Central banks worldwide dramatically increased borrowing costs from near zero during the coronavirus pandemic when prices started to shoot up, first as a result of supply chain issues built up and then because of Russia’s full-scale invasion of Ukraine which pushed up energy costs.
As inflation rates have recently fallen from multi-decade highs, the central banks have started cutting interest rates.
Economists have warned that worries about the future path of prices following last week's tax-raising budget from the new Labour government and the economic impact of US President-elect Donald Trump may limit the number of cuts next year.
The decision comes a week after Treasury chief Rachel Reeves announced around 70 billion pounds ($90 billion) of extra spending, funded through increased business taxes and borrowing. Economists think that the splurge, coupled with the prospect of businesses cushioning the tax hikes by raising prices, could lead to higher inflation next year.
The rate decision also comes a day after Trump was declared the winner of the US presidential election. He has indicated that he will cut taxes and introduce tariffs on certain imported goods when he returns to the White House in January. Both policies have the potential to be inflationary both in the US and globally, thereby prompting Bank of England policymakers to keep interest rates higher than initially planned.