UAE-Qatar 'facing negative inflation'

Qatar and the UAE are likely to see negative inflation this year due to falling house prices, while inflation rates will slow sharply in Saudi Arabia and Kuwait, EFG-Hermes said in a note yesterday.

Inflationary pressures have dropped off rapidly across the oil-exporting region as crude prices fell from peaks of $147 a barrel in July last year and the dollar strengthened, easing import costs for states that peg their currencies to the US currency.

"The UAE and Qatar will see the greatest reversal in inflation trends," EFG-Hermes said in the research note.