Economy
Deflation Takes Hold in Abu Dhabi with Housing Pressuring Most

(Bloomberg) — Deflation is becoming entrenched in the United Arab Emirates’ capital, Abu Dhabi.
Consumer prices in oil-rich Abu Dhabi declined for a second consecutive month, falling 1.4% in July from a year ago, according to a release by the emirate’s statistics service. The drop was the biggest since at least 2015, and the sixth in seven months, according to data compiled by Bloomberg.
An index of prices for housing, water, and electricity, which holds the biggest weight among a dozen constituents, dropped 3.6% last month.
“In the foreseeable future, it is hard to see the housing sector bottoming out, given current market conditions,” said Mohamed Bardastani, the Dubai-based senior economist at Oxford Economics. “A mismatch in the supply and demand curve and weak employment numbers have weighed down on housing prices, and that is the case in both Dubai and Abu Dhabi.”
The deflationary momentum began in the U.A.E., and neighboring Saudi Arabia, because the introduction of value-added tax in 2018 created a high base for comparison. The prolonged slump in housing costs that’s now putting broader price growth into negative territory has kept it going.
-
Banking & Finance2 months ago
Oman Arab Bank Announces Increase of Authorised Capital to RO500mn and Paid‑In Capital Boost of RO50mn
-
Bahrain2 months ago
SPIEF 2025 focused on global and regional economic processes, market transformation, new tech, investment climate, financial policy and people
-
Banking & Finance1 month ago
National Finance Reinforces Position as Partner for Growth, Offers a Comprehensive Product Suite to Support Customer Ambitions
-
OER Magazines2 months ago
OER, June 25
-
Energy1 month ago
Russian Energy Week from October 15-17, 2025 offers alternative formats of cooperation
-
Retail2 months ago
All services are moving toward personalisation says Tatyana Kim, Founder of Wildberries and Head of RWB
-
Banking & Finance2 months ago
The Future of the International Financial System to be discussed at SPIEF 2025
-
Alamaliktistaad Magazines2 months ago
Al-Iktisaad, June 25
You must be logged in to post a comment Login