Nine-year high Philippine inflation rate could hit OFWs’ pockets

Higher food prices, which make up more than a third of the consumer price index, had a major contribution to inflationary pressures in August. (AFP)
Updated 05 September 2018
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Nine-year high Philippine inflation rate could hit OFWs’ pockets

  • OFWs have benefitted from the peso’s weakness against the US dollar, but the gains might have been offset by the reduction of purchasing power
  • Remittances from overseas Filipinos in June fell to their lowest levels in three months to $2.61 billion

DUBAI: Filipino expats might have to consider increasing the money they send home, to help their families keep up with the unabated rise in prices of basic consumer goods, which has diminished whatever benefits they gained from the recent favorable exchange rate, analysts say.
“The higher inflation reduced the purchasing power of Overseas Filipino Workers (OFWs) and their families, eroding whatever OFWs gained from the higher US dollar/peso exchange rate that increased the peso equivalent of their remittances about 4.5 percent year-on-year and about 7 percent since the start of 2018,” Michael L. Ricafort, head of the economics and industry research division at Rizal Commercial Banking Corporation told Arab News.
OFWs have benefitted from the peso’s weakness against the US dollar, but the gains might have been offset by the reduction of purchasing power due to elevated inflation, Guian Angelo S. Dumalagan, market analyst at Land Bank of the Philippines, said.
“Using the inflation in August of 6.4 percent, OFWs and their families might just be better off by just 0.6 percent,” Dumalagan told Arab News.
The government on Wednesday reported that headline inflation rose by 6.4 percent year-on-year in August – the highest in nine years – from 5.7 percent a month earlier and 2.6 percent in August last year. The August inflation rate also exceeded the 5.9 percent forecast given by Philippine monetary and finance authorities.
Remittances from overseas Filipinos in June meanwhile fell to their lowest levels in three months to $2.61 billion, 5 percent down from $2.75 billion of the same month last year. Monetary authorities said the biggest declines in cash remittances were recorded in the United Arab Emirates, Saudi Arabia and Kuwait during the said period.
“An unfortunate confluence of cost-push factors continues to drive consumer price inflation in August beyond the acceptable target range. Much of it has to do with food supply shocks, rice in particular. These warrant more decisive non-monetary measures to fully address,” Nestor Espenilla, Jr, Governor of the Bangko Sentral ng Pilipinas, said.
“We also need to consider external developments and US Fed actions to the extent these exert undue pressure on the peso. Under the circumstances, we will weigh the need for further monetary policy action,” the central bank governor added.
Higher food prices, which make up more than a third of the consumer price index, had a major contribution to inflationary pressures in August. The retail prices of rice were up by at least 10 percent year-on-year, pushed by a shortage of cheaper rice in the market; corn prices were up by as much as 20 percent in some areas of the country; sugar prices rose as much as 20 percent since the start of the year.
“The government, particularly the Department of Agriculture, must act quickly and fervently with a sound judgment to ease the increasing prices of agricultural commodities which are the main drivers of inflation,” Socioeconomic Planning Secretary Ernesto M. Pernia said. “The NFA should fast-track the distribution of remaining inventories, alongside the completion of the government’s 250 thousand MT rice imports from Thailand and Vietnam in the last week of August to build its rice inventory, a necessary step to temper inflation.”
The National Food Authority is a government agency responsible for ensuring food security in the Philippines and the stability supply and price of rice, the country’s main staple. Aside from shipping in more rice, the government is also planning to import fish, particularly round scad, as some municipal waters impose fishing bans in their areas between October to February and allow fish stocks to be replenished.
The analysts are however hopeful that inflation levels might have peaked in August, and would begin to taper off by the end of the year.
“It is possible that the higher-than-expected inflation rate of 6.4 percent in August is already the peak and the inflation rate for the remaining months of 2018 could be slower and linger at or near 6 percent levels, before easing to between 4 percent and 5 percent in the early part of 2019,” Ricafort said, as the residual effect of the new tax law implemented in January eases.
“Efforts of government to address supply issues should eventually moderate price pressures. But the impact of second-round effects would still have to be reflected in production costs and retail prices,” ING Bank senior economist Joey Cuyegkeng said.
Former president and current House of Representatives Speaker Gloria Macapagal Arroyo, who is also an economist, also said the high inflation rate should not be a cause for alarm as “the government was doing what it can do to address it.”
“Hopefully this will be the peak. Conceivably even a sharp increase can be resolved, but we have to analyze what is driving it and therefore address what is driving it,” Arroyo added.


CMA approves new rules to spur Saudi investment fund sector

Updated 09 July 2025
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CMA approves new rules to spur Saudi investment fund sector

RIYADH: Saudi Arabia’s Capital Market Authority has announced a package of regulatory enhancements aimed at strengthening the investment fund environment in the Kingdom, according to a press release issued on Wednesday.

The reforms, which involve amendments to the Investment Funds Regulations, Real Estate Investment Funds Regulations, and the glossary of terms used across CMA regulations, are designed to advance the regulatory framework governing investment funds.

The goal is to elevate the competitiveness of the asset management industry by identifying development opportunities, adopting international best practices, and enhancing transparency and governance.

The reforms reflect Saudi Arabia’s broader efforts to deepen its capital markets and attract more local and international investment, in line with Vision 2030 economic diversification goals.

According to a CMA board decision, the updated rules will help expand and develop the investment fund and REIT sectors, increase transparency for unitholders, and improve investor protection through more robust governance standards.

Key reforms

One of the major changes includes broadening the categories of entities allowed to distribute investment fund units. Under the new rules, fund units may now be distributed via licensed investment platforms and e-money institutions approved by the Saudi Central Bank, including through their websites and mobile apps.

Additional reforms cover the procedures for fund termination and the removal of fund managers, as well as new guidelines for voluntary withdrawal by managers of both public and private funds.

A key requirement is obtaining CMA approval for such withdrawals, and ensuring that the outgoing fund manager transfers all management responsibilities to a successor within 60 days. This is aimed at safeguarding investor rights and ensuring a smooth transition process.

REIT flexibility in parallel market

In a move to expand investment opportunities and increase potential returns for investors, the CMA will now allow traded real estate investment funds listed on the parallel market to invest in real estate development projects at the time of fund establishment.

These investments will not be bound by the standard asset allocation ratios and restrictions previously outlined in the Real Estate Investment Funds Regulations.


Egypt’s annual urban consumer inflation at 14.9 percent in June, stats agency says

Updated 09 July 2025
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Egypt’s annual urban consumer inflation at 14.9 percent in June, stats agency says

  • Urban food and beverage prices were down 1.2%

DUBAI: Egypt’s annual urban consumer price inflation slowed to 14.9 percent in June from 16.8 percent in May, data from statistics agency CAPMAS showed on Wednesday.

The drop in inflation is steeper than the median forecast of 15 analysts polled by Reuters, which had seen annual urban consumer inflation last month at 16.2 percent.

Urban food and beverage prices were down 1.2 percent overall compared to May 2025 but were up by 6.9 percent against June 2024, according to CAPMAS.

Urban inflation on a monthly basis inched down in June by 0.1 percent compared to May, as meat and poultry prices were down by 3.8 percent, fruits by 2.1 percent and vegetables by 1 percent, while the prices of bread and cereals were up by 0.3 percent and seafood by 0.8 percent.

Egypt’s annual inflation has plunged from a record high of 38 percent in September 2023, helped by an $8 billion financial support package agreed with the International Monetary Fund in March 2024. 


Most Gulf markets close higher shrugging off Trump’s tariff news

Updated 09 July 2025
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Most Gulf markets close higher shrugging off Trump’s tariff news

  • Saudi Arabia’s benchmark index eased 0.1%
  • Abu Dhabi index added 0.4%

LONDON: Most stock markets in the Gulf reversed early losses to close higher on Wednesday as investors appeared unfazed by the latest tariff threats from US President Donald Trump. 

Trump ramped up his trade offensive on Tuesday, announcing a 50 percent tariff on copper and renewed long-threatened levies on semiconductors and pharmaceuticals. He also reiterated plans to slap 10 percent tariffs on imports from Brazil, India, and other BRICS countries. 

Saudi Arabia’s benchmark index eased 0.1 percent, dragged down by a 3.1 percent slide in utilities heavyweight ACWA Power and a 0.9 percent decrease in oil giant Saudi Aramco.

In the UAE, Dubai’s main index gained 0.7 percent, hitting a fresh 17-year high, lifted by a 3.6 percent rise in Emirates Central Cooling Systems Corp. 

Emirates has signed a preliminary agreement with Crypto.com to accept payments through its platform. 

The UAE continues to grow as a regional hub for crypto firms, with several enabling crypto payments for real estate, tuition, and transport. 

Abu Dhabi index added 0.4 percent, posting its sixth straight session of gains. 

Abu Dhabi National Insurance Co. advanced 6.4 percent following regulatory approval to open a branch in India. 

Qatar’s benchmark index closed flat. 

Outside the Gulf, Egypt’s blue-chip index, which traded after a session’s break, finished 0.4 percent higher, with Commercial International Bank rising 0.6 percent higher. 

Egypt’s stock exchange suspended trading on Tuesday, citing ongoing disruptions affecting brokerage firms’ ability to communicate efficiently across the trading system, after a fire broke out on Monday in a telecoms data center in Cairo. 


Blacklane and EVIQ partner to expand EV charging network in Saudi Arabia 

Updated 09 July 2025
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Blacklane and EVIQ partner to expand EV charging network in Saudi Arabia 

  • Initiative aims to support development of sustainable infrastructure, focusing on clean technologies
  • Deal includes development of dedicated charging stations for vehicle fleets

JEDDAH: Electric vehicle charging infrastructure is set to expand across Saudi Arabia following a strategic partnership between Blacklane and EVIQ, accelerating the Kingdom’s shift toward clean and sustainable mobility. 

Under the agreement, EVIQ — a joint venture between the Public Investment Fund and Saudi Electricity Co. — will collaborate with the international chauffeur-driven transport firm to support the expansion of the Kingdom’s EV charging network across key cities and mobility hubs, according to a press release. 

The initiative aims to support the development of sustainable infrastructure in line with Saudi Vision 2030, focusing on clean technologies and environmental responsibility. It also supports the Kingdom’s goal to transition 30 percent of vehicles in Riyadh to electric by 2030 and achieve net-zero emissions by 2060 — a target it aims to reach ahead of schedule

Mohammed Bakr Gazzaz, CEO of EVIQ, said: “By integrating national charging infrastructure with premium fleet operations, we aim to reinforce the foundation for a scalable, future-ready transport ecosystem aligned with Saudi Arabia’s Vision 2030.” 

The deal includes the development of dedicated charging stations for vehicle fleets, most notably an integrated charging center at Blacklane’s new regional headquarters for the Gulf region in Riyadh. 

“As we rapidly scale operations across the nation, we’re thrilled to have EVIQ on-board to actively support our expanding electric fleet. Together we are setting new benchmarks for sustainable innovation and success,” said Jens Wohltorf, CEO and co-founder of Blacklane. 

Blacklane will incorporate EVIQ’s public charging network into its operations in Saudi Arabia to support its growing electric vehicle fleet. Both companies also plan to explore opportunities for system integration aimed at improving network functionality and user accessibility. 

The partnership follows Blacklane’s recent introduction of Lucid electric vehicles into its Saudi fleet, as part of efforts to expand its EV offerings. EVIQ’s fast-charging network supports the company’s goal of enhancing its electric mobility services in the Kingdom, the release added. 

As part of the partnership, the companies will co-develop training programs under Blacklane’s Chauffeur Training Academy, focusing on EV charging best practices to support service quality, safety, and sustainability. 

Blacklane’s expansion in Saudi Arabia is backed by TASARU Mobility Investments, a wholly owned investment arm of PIF.


Closing Bell: Saudi main index slightly dips to 11,278; Nomu gains

Updated 09 July 2025
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Closing Bell: Saudi main index slightly dips to 11,278; Nomu gains

  • Parallel market Nomu gained 104.43 points to close at 27,448.22
  • MSCI Tadawul Index edged down 0.27% to 1,445.25

RIYADH: Saudi Arabia’s Tadawul All Share Index dropped marginally on Wednesday, shedding 16.34 points or 0.14 percent to close at 11,277.73. 

The total trading turnover of the benchmark index was SR5.48 billion ($1.46 billion), with 140 of the listed stocks advancing and 109 declining. 

The Kingdom’s parallel market Nomu, gained 104.43 points to close at 27,448.22.

The MSCI Tadawul Index edged down by 0.27 percent to 1,445.25.

The best-performing stock on the main market was Umm Al Qura for Development and Construction Co. The firm’s share price increased by 8.62 percent to SR26.70. 

The share price of Saudi Real Estate Co. also rose by 7.68 percent to SR20.89. 

Retal Urban Development Co. also saw its share price advance by 6.62 percent to SR16.10. 

On the announcements front, Alinma Bank said that it completed the issuance of US dollar-denominated sukuk worth $500 million, under its Trust Certificate Issuance Program. 

According to a press statement, the sukuk issue is expected to settle on July 15. 

The share price of Alinma Bank declined by 1.19 percent to SR26.68. 

Jahez International Co. for Information System Technology announced that it has signed an agreement to acquire a 76.56 percent stake in Snoonu Corporation Holding LLC, a Qatari-based technology and logistics firm that operates an e-commerce and on-demand delivery platform. 

In a press statement, the company revealed that it will acquire 8.14 million shares, representing 75 percent of Snoonu’s share capital, from existing shareholders for $225 million. 

Jahez will also subscribe to 723,960 newly issued shares in Snoonu, representing 1.56 percent of the stake, for $20 million. 

The share price of Jahez edged up by 1.11 percent to SR27.44.