There is increasingly intense competition in the country's lucrative SR3 billion air-conditioning market, with one industry specialist describing it as “vicious”. The price of air-conditioners rises about 10 percent a year. Specialists say the size of the market is likely to grow well beyond SR3 billion in the coming years because of population growth, real estate developments, and other economic initiatives such as the giant economic cities and other urban and industrial projects. Wael Ahmad, an air-conditioning salesman and maintenance employee, said the high prices are due to increase in the prices of raw materials such as steel, copper and plastic on international markets. The prices of all manufacturers have gone up, including from Japan and other Asian countries. However, international companies have tried to reduce the amount of electricity needed for its 2011 models. He said the local market is distinguished by the variety of foreign and Saudi companies and franchises, which offers consumers a wide selection and encourages competition. He said there are more than 30 Saudi agencies and distributors around the country, in addition to companies that assemble air-conditioners. Ahmad said that Chinese air-conditioners have become number one in terms of sales, adding that there are no longer 100 percent Japanese or US-made air-conditioners on the Saudi market. Salem Al-Bargouthi, a marketing specialist, said there is “vicious competition” among importers of air-conditioners. He said the demand for regular air-conditioners is equal to that for central air-conditioning systems. According to Ahmad, a recent study showed that the newer, more energy efficient machines reduce electricity costs by SR4 billion a year. It was remarkable that the price difference between the new and old machines is only SR100, he added. This money consumers can get back in the first electricity bill. __
