From The Report: Saudi Arabia 2016
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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 investment in the Kingdom by domestic and international retailers alike. The most pressing obstacle to ongoing sector expansion is the regional macroeconomic situation, which has seen cuts in state spending and in subsidies for electricity and fuel with the effect of curbing disposable incomes.