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RIYADH: Gulf Cooperation Council inflation rates remained stable throughout the second quarter of 2025 despite heightened geopolitical instability, a new report showed.

According to the latest analysis by Kuwait-based non-banking firm Kamco Invest, Dubai recorded a monthly inflation rate of 2.4 percent in June, unchanged from May, followed by ������Ƶ and Kuwait, both registering inflation rates of 2.3 percent in June.

This aligns with recently released data from the Statistical Center for the GCC, which shows that the region’s average inflation rate fell to 1.7 percent in 2024, down from 2.2 percent in 2023.

It also supports the fact that the GCC economies are expected to grow 4.4 percent in 2025, up from an earlier forecast of 4 percent, as rising oil output and resilient non-oil sector activity offset global trade headwinds, according to a recent economic update by the Institute of Chartered Accountants in England and Wales prepared with Oxford Economics.

“The war in the Middle East affected crude oil prices that surged to almost $79 per barrel. But quietly receded in the subsequent weeks as OPEC+ accelerated the output hikes aiming to unwind the full 2.2 mb/d by September-2025,” Kamco said.

It added: “Brent crude oil is trading at $68.4 per barrel, 8.3 percent lower than its level at the end of 2024. The quarter also witnessed the start of the global tariff war that affected financial markets and expectations for future economic growth.”

The Kamco report also said that the conflict’s limited impact on regional inflation was largely because increases in commodity and shipping costs occurred gradually over time, rather than through sudden spikes.

The ongoing application of prudent economic policies across the GCC has also played a key role in controlling inflation, keeping rates well below those in other parts of the Middle East and the world.

Inflationary pressures in the US intensified in June, with the annual rate climbing to 2.7 percent, the highest in five months, up from 2.4 percent in May. The uptick was primarily attributed to rising prices in core goods, which hit their highest level in two years.

“These increases are largely attributed to new tariffs affecting household furnishings, appliances, electronics, apparel, and toys. Meanwhile, the US consumer price index registered a m-o-m (month-on-month) growth of 0.3 percent in June-2025. Excluding the typically volatile food and energy sectors, US core inflation increased by 0.2 percent m-o-m, with the annualized core rate rising to 2.9 percent in June,” Kamco said.

“It is important to highlight that prior to this uptick, US inflation had been on a generally downward trajectory. Similarly, inflation in the Eurozone rose in June-2025, reaching 2.0 percent, down from 2.5 percent in June-2024 but slightly higher than May-2025’s rate of 1.9 percent. The Services sector experienced the highest y-o-y growth at 3.3 percent, followed by the Food, Alcohol, and Tobacco category, which rose by 3.1 percent,” it added.

Earlier in July, Kamco Invest said that foreign investors sharply increased their exposure to Gulf stock markets in the second quarter of 2025, with net inflows surging 50 percent compared to the previous three months to reach $4.2 billion. 

The momentum extended the streak of net foreign inflows into GCC equities to six consecutive quarters, with total net purchases in the first half of 2025 rising 39.8 percent year on year to $7 billion. 

RIYADH: Dubai International Airport handled 46 million passengers in the first half of 2025, marking its busiest six-month period on record despite regional airspace disruptions and global headwinds. 

In a press release, operator Dubai Airports said the 2.3 percent year-on-year increase underscores the continued strength of the emirate’s aviation sector and the terminal’s operational resilience. 

The growth came despite temporary airspace restrictions in May and June, which forced several Gulf carriers to reroute flights and adjust schedules due to heightened military activity and no-fly zone declarations in parts of the Middle East. 

Paul Griffiths, CEO of Dubai Airports, said: “DXB’s continued growth through a period of regional challenges highlights the strength of Dubai and the UAE, the agility of our operations, and the commitment of our airport community.” 

In the second quarter alone, the airport handled 22.5 million passengers, a 3.1 percent increase over the same period last year. April was the busiest month of the quarter and the most active April on record, with 8 million travelers. 

Average monthly traffic during the first half stood at 7.7 million passengers, with daily volumes averaging 254,000. January was the busiest month, setting a new monthly record with 8.5 million passengers. 

DXB also handled 222,000 flights and processed 41.8 million bags in the first half, with 91 percent delivered within 45 minutes of arrival. The mishandled baggage rate stood at 2 bags per 1,000 passengers, well below the industry average of 6.3, the release added. 

“As we enter the second half of the year, travel activity is expected to accelerate, beginning with the late-summer peak and leading into a winter season filled with high-profile events across entertainment, sport, and business,” said Griffiths. 

He said the Dubai Airshow 2025 will be a standout event, poised to break previous records and highlight the bold vision driving the future of aviation and aerospace. 

“Based on our performance to date and a positive outlook, we expect the annual traffic to reach 96 million this year, bringing us closer to the symbolic 100 million milestone,” added Griffiths. 

India remained DXB’s top market in the first half of the year, with 5.9 million passengers, followed by ������Ƶ with 3.6 million. The UK accounted for 3 million passengers, while Pakistan and the US recorded 2.1 million and 1.6 million, respectively. 

London was the busiest city destination with 1.8 million passengers, followed by Riyadh, Mumbai, Jeddah, New Delhi, and Istanbul. 

DXB also processed more than 1 million tonnes of cargo during the first half of 2025, a 0.1 percent increase compared with the same period last year. The airport is connected to more than 269 destinations in over 107 countries and is served by 92 international carriers.