Retail
From The Report: Saudi Arabia 2015
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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 term. Indeed, the existing rental environment presents a challenge for many retailers in the Kingdom, with rent in some cases reaching up to 25% of tenants’ sales revenue, although in the fast food segment it is a more manageable 15%. However, the overall mood in the industry is one of optimism, buoyed by the presence of strong fundamental conditions for growth. This chapter contains an interview with Khalid Al Sehaibany, General Manager, Hamat Property Group.

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Overview

Ready for take-off: Demographic and economic factors signal a market ripe for expansion
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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 is now beginning to attract greater attention from a number of international brands and mall developers.…

Interview

Shopping therapy: OBG talks to Khalid Al Sehaibany, General Manager, Hamat Property Group
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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 Saudi government encourages and supports private sector contribution and growth in line with…