Saudi Arabia is to pay low-income Saudis an extra 1.15 billion riyals ($306 million) in aid during the fasting month of Ramadan, state media said.

The grant ordered by King Abdullah will be distributed to families covered by social welfare to help them "fulfil their urgent needs during the holy month of Ramadan", the Saudi Press Agency said.

Ramadan begins on Monday (September 1).

Saudi inflation hit a 30-year high of 10.6 percent in June and is expected to continue rising in the third quarter.  Inflation is a key challenge across the Gulf, where currencies are pegged to the ailing dollar, as their economies surge on windfall revenues from oil that has been racing to record highs. - Reuters