While Saudi Arabia’s economy remains dominated by its hydrocarbons sector, several other sectors have emerged in recent years as key propellors of economic growth. The Kingdom’s financial services industries have continued to expand steadily despite the liquidity challenges posed by falling oil prices. Trade and investment are being treated as key priorities as the government looks to negotiat
In mid-July 2016 YouGov, a UK-based market research firm, released the results of its latest survey of the most popular brands in Saudi Arabia. At the top of the firm’s 2016 Mid-Year BrandIndex BestBrand Rankings was Almarai, a Riyadh-based food and beverages producer that bills itself as the world’s largest vertically integrated dairy company. In the past few years Almarai has moved steadily up…
With high levels of consumer spending in 2015 and early 2016 despite recent macroeconomic pressures, Saudi Arabia’s retail sector is widely acknowledged to be a bright spot in an otherwise challenging current economic landscape. Over the past decade the industry has posted growth of 12% on an annual basis on the back of steadily rising purchasing power among Saudi households and, concurrently, rapid…
With high levels of consumer spending in 2015 and early 2016, and despite recent macroeconomic pressures, Saudi Arabia’s retail sector is widely acknowledged to be a bright spot in an otherwise challenging current economic landscape. Over the past decade the industry has posted growth of 12% on an annual basis, according to data from a December 2015 report from consultancy McKinsey, on the back of…
High levels of consumer spending, coupled with reforms allowing for greater foreign ownership of retail businesses, look set to drive expansion in Saudi Arabia’s retail sector through to 2020 and beyond. Under Vision 2030, the Kingdom’s long-term development plan released at the end of April, the retail sector has been identified as an area of the economy well placed to stimulate growth and create…
New regulations are set to expand international investor access to Saudi Arabia next year, when a landmark move allowing full foreign ownership of key retail and wholesale businesses takes effect. The changes to the rules, which will create an exception to the current 75% cap on foreign ownership across several industry segments, are expected to bring an influx of new entrants to the Kingdom, as well…
Saudi Arabia has a strong base of domestic consumers, strengthened by a growing population of young people and rising disposable incomes. With the sector remaining undersupplied, the opportunities for growth are substantial. While retail sectors in other GCC countries witnessed strong investment and expansion over the last decade, Saudi Arabia remained an underdeveloped retail market – but one that…
Interview: Khalid Al Sehaibany How do the Kingdom’s franchise regulations compare with other markets in the region? KHALID AL SEHAIBANY: Saudi Arabia is the largest market in the Gulf and the franchising approach continues to expand in several business sectors. A thriving economy, coupled with a growing and young population, makes Saudi Arabia an inviting market for the franchising industry. The…
Despite the global fall in oil prices, Saudi Arabia’s retail sector continues to enjoy robust growth, fanned by its solid base of domestic consumers and strengthened by a growing youth population and rising disposable incomes. The strong performance of retailers across a number of sectors is leading to increased demand for dedicated mall space, which is expected to command a premium in the short…
While international brand penetration is increasing, Saudi Arabia’s vast potential for retail has yet to be fully realised. A combination of favourable demographics, rising incomes, and strong consumer confidence and appetite make the country one of the most promising growth markets for retail globally. Although the local industry has a challenging operating environment and unique social dynamics,…
