Retail
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.

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Overview

Robust fundamentals: Long-term expectations are buoyant despite near-term hurdles
OBG
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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 steadily rising purchasing power among Saudi households and, concurrently, rapid investment in the…

Analysis

Brand power: Domestic retail manufacturers are increasingly competing with international players
OBG
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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 the survey’s rankings, due largely to the success of a series of digital videos the firm has released…