Oil prices, Morocco inflation-targeting, Saudi inflation

Brent crude dropped to its lowest level since early 2021 this week, and we think that this trend will persist in 2026. This is not a major concern for the Gulf economies' balance sheets, but it reinforces our view that softer growth lies in store for non-oil sectors. Meanwhile, Morocco’s central bank left interest rates on hold this week at 2.25%, but 2026 could see a big shift in monetary policy as the planned transition to inflation-targeting begins. And the drop in Saudi inflation in November is a sign of things to come as housing pressures continue to fade. 

Note: This will be the last Middle East and North Africa Economics Weekly for 2025. The next Weekly will be sent on Thursday 8th January 2026.