The International Monetary Fund (IMF) projects a gradual easing of inflation across the Middle East and North Africa (MENA) region—from 14.2% in 2024 to 12.2% in 2025, declining further to around 10.3% in 2026. GCC economies show significantly lower inflation rates, reflecting their economic resilience amid global cost pressures. Specifically, the UAE’s inflation is forecasted to be approximately 1.6% in 2025 and around 2% in 2026, while Qatar expects about 0.1% inflation in 2025 and roughly 2.6% in 2026. The average GCC inflation is projected near 1.7% in 2025 and 2% in 2026.
This low inflation outlook provides stability for businesses in pricing, wage management, contract negotiations, and investment planning, offering a predictable environment for corporate expansion and financial decision-making in the region.
