Study Results from Qassim University Broaden Understanding of Risk Management (The Impact of Supply Chain Disruptions and Global Uncertainty on Inflation Rate in Saudi Arabia): Insurance – Risk Management

2025 APR 03 (NewsRx) -- By a News Reporter-Staff News Editor at Insurance Daily News -- Investigators publish new report on risk management. According to news reporting originating from Buraydah, Saudi Arabia, by NewsRx correspondents, research stated, “Inflation rate is considered undesirable in the modern globalized world due to its adverse and long-lasting impacts. The Kingdom of Saudi Arabia (KSA, hereafter) has also experienced inflationary pressure during the last few years, specifically post-COVID-19.”

Our news reporters obtained a quote from the research from Qassim University: “However, the empirical literature on the determinants of inflation is indeed very scarce in the context of KSA. Amid this backdrop, this research paper aims to figure out the true determinants of inflation by focusing on the role of supply chain disruptions and global uncertainty by focusing on KSA. Quantitative data were collected from credible sources on a monthly basis for the period of 1998M01 to 2024M02 and were analyzed through the ‘Autoregressive Distributed Lag Model (ARDL)’. Our findings indicate that inflation in KSA is positively impacted by supply chain disruptions, global uncertainty, inflation spillovers from the United States, and money supply in the long run. Similarly, in the short run, only money supply, supply chain disruptions, and global uncertainty are responsible for the prevailing inflation rate in KSA. Moreover, the real effective exchange rate is positively and significantly linked with inflation only in the long run.”

According to the news editors, the research concluded: “Furthermore, positive shocks in oil prices cure inflation, while negative shocks in oil prices accelerate inflation in the short run. Our results are expected to shape policy formulation regarding the management of the inflation rate in KSA significantly.”

For more information on this research see: The Impact of Supply Chain Disruptions and Global Uncertainty on Inflation Rate in Saudi Arabia. Risks, 2025,13(3):54. (Risks - http://www.mdpi.com/journal/risks). The publisher for Risks is MDPI AG.

A free version of this journal article is available at https://doi.org/10.3390/risks13030054.

Our news journalists report that more information may be obtained by contacting Abdulrahman A. Albahouth, Department of Economics, College of Business and Economics, Qassim University, Buraydah 51452, Saudi Arabia.

(Our reports deliver fact-based news of research and discoveries from around the world.)