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, mall space is set to increase significantly in the near term and e-commerce is now beginning to take off locally as well. As a result, in both the short and the long term, the rewards for investment in the sector should be high.
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