WITH inflation rising across the Gulf region, Saudi Arabia’s perennial problem of unequal distribution of wealth has never been so obvious.

While many Saudis queue for hours to obtain water in Jeddah, others are able to take advantage of America’s new-found disdain for gas-guzzling four-wheel drives by snapping up imported cars.

Thousands of couples are cutting costs by forgoing individual weddings in favor of mass ceremonies carried out by a charity backed by Saudi princes. But the affluent are still going on holidays, albeit opting for cheaper stays in neighboring Arab countries rather than trips to Europe or Asia.

Surging oil prices have triggered a turnaround in Saudi Arabia’s economic fortunes and a return to some of the big spending — by wealthy individuals — that characterized the 1970s and 1980s.

But the economic boom has also stoked prices for food and fuel, leading to discontent in a rapidly changing country where around two-thirds of the 17-million-strong local population are under 30, educated and outspoken, and aware of events abroad.

In June, inflation in the Kingdom hit a 30-year high of 10.6 percent, mainly on increases in food and housing costs.

“Inflation hasn’t reached the point that it’s barred us from traveling. We will still travel like we used to and maintain the same lifestyle,” said Ohoud, a bank manager from Riyadh who did not want to give her last name.

However, she said she had noticed that salaries were not keeping pace with prices.

John Sfakianakis, chief economist at SABB bank, HSBC’s Saudi subsidiary, said the government could not raise wages to match inflation if it wanted to avoid adding inflationary pressures, but it risked angering workers.

“Public sector workers don’t understand why the government is not raising wages to match inflation; there is a disconnection between expectations and what the government delivers and so there is discontent,” he said.

A January wage hike of 5 percent for government employees disappointed those Saudis who earn less than SR10,000 a month, especially after Gulf neighbors moved more quickly to raise wages by larger amounts.

Saudis earning less than that figure would still expect to employ a driver and at least one maid. They are not taxed and receive free health and education, and other benefits.

“I don’t feel it has affected me too much because my family’s financial situation is good,” said Najla, 22, a bank intern in Riyadh, who did not give her last name.

“But I’ve noticed we don’t buy as many things as we used to, like laptops. In every home, each person has to buy at least one a year, that’s the usual demand. But not for us this year.”

At the other end of the spectrum is Lulwah, 36, a mother of five who sells snacks on a mat at a park in Riyadh.

She recently had to take out a loan from a charity.

“This is the second time I have done it and I have used the money to chip in with six other women to start a catering business,” she said. “I have also taken to sewing clothes, some to sell and some to dress my children with, and it has helped me a lot. But things are still difficult for my husband and me.”

“Saudi Arabia is about to enter an era where there is no middle class, you will either find extremely rich people or extremely poor people, unfortunately,” read a comment on a popular business news portal, www.alaswaq.net.