Ramadan shoppers in Saudi Arabia have been assured that the cost of essential foods will remain stable during the holy month despite the impact on supply chains of higher fuel prices and a global wheat shortage arising from the war in Ukraine.
Although prices of food and beverages have edged up in recent months, there will be no shortage of basic necessities thanks to the kingdom's “multiplicity of import sources globally”, the Ministry of Environment, Water and Agriculture said last month.
The ministry said Ukraine conflict had not had any negative repercussions on the local market or on supplies due to Saudi Arabia's experience in “dealing with crises that sweep the world”.
However, despite supply chain security, the inflation rate rose to 1.6 per cent in February from 1.2 per cent the previous month — its highest level since June last year.
Food and beverage prices rose by a five-month high of 2.4 per cent in February, compared with 2 per cent in January, mainly due to a 9.7 per cent surge in vegetable prices, according to the Central Department of Statistics & Information (GSTAT).
Preparations for Ramadan — in pictures
According to traders quoted in Saudi media, the two items that have seen biggest increase in prices before Ramadan are coffee and spices, both of which are in high demand during holy month. While spices went up by 5-6 per cent, traditional Arabic coffee rose sharply, by 30 per cent, they said.
Other Ramadan necessities, such as flour, oil and sugar, are likely to remain stable during Ramadan, supermarket manager Talal Mohammed told The National.
Supply has been good, we haven’t experienced any significant shortages or delays
Talal Mohammed,
supermarket manager
“Supply has been good, we haven’t experienced any significant shortages or delays,” Mr Mohammed said. “We expect prices to stay stable for the entire month.”
The Saudi government has made significant attempts to control unwarranted price increases since the start of the Covid-19 pandemic in February 2020.
According to trade guidelines from the Ministry of Commerce, food prices are subject to free competition between traders and dealers. However, in cases of shortage, monopoly, or an increase in indicated prices, traders who attempt to manipulate or hide item prices or conceal stocks are subject to fines ranging from 1,000 riyals ($267) to 50,000 riyals.
The ministry has also set up an online platform and a hotline for citizens to report cases of overcharging.
Overall, shoppers preparing for Ramadan appeared to be unconcerned as they loaded up their carts.
Hanaa Al Hamdan, a mother and hospital administration employee, told The National that she felt “secure” enough to shop freely, with government protective measures in place.
“Ramadan is the worst time to try to be conservative about shopping,” she said. “Food is such a central part of the experience. I trust that the government is looking out for us, especially since this time of year is so important to everyone.”
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Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
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Key figures in the life of the fort
Sheikh Dhiyab bin Isa (ruled 1761-1793) Built Qasr Al Hosn as a watchtower to guard over the only freshwater well on Abu Dhabi island.
Sheikh Shakhbut bin Dhiyab (ruled 1793-1816) Expanded the tower into a small fort and transferred his ruling place of residence from Liwa Oasis to the fort on the island.
Sheikh Tahnoon bin Shakhbut (ruled 1818-1833) Expanded Qasr Al Hosn further as Abu Dhabi grew from a small village of palm huts to a town of more than 5,000 inhabitants.
Sheikh Khalifa bin Shakhbut (ruled 1833-1845) Repaired and fortified the fort.
Sheikh Saeed bin Tahnoon (ruled 1845-1855) Turned Qasr Al Hosn into a strong two-storied structure.
Sheikh Zayed bin Khalifa (ruled 1855-1909) Expanded Qasr Al Hosn further to reflect the emirate's increasing prominence.
Sheikh Shakhbut bin Sultan (ruled 1928-1966) Renovated and enlarged Qasr Al Hosn, adding a decorative arch and two new villas.
Sheikh Zayed bin Sultan (ruled 1966-2004) Moved the royal residence to Al Manhal palace and kept his diwan at Qasr Al Hosn.
Sources: Jayanti Maitra, www.adach.ae
Our legal consultant
Name: Dr Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.