The demand for consumer products in Saudi Arabia will increase dramatically, Robert A. McDonald, chief operating officer of Procter & Gamble's, said. “Saudi Arabia has accelerated dramatically,” McDonald said. “We see a lot of growth in the Middle East,” he said. Increasing buying power for consumers in emerging markets has helped US companies with big overseas presence even as American household budgets are tightening amid a credit crunch and housing slump. He said that the maker of Tide detergent and Pampers diapers is seeing double-digit increases in countries in the Kingdom. McDonald said having worldwide business helps provide overall growth and “a natural hedge” against currency fluctuations. “When you buy P&G stock, in many ways, you're buying a global index fund,” he said. “We believe that we are a good place to invest because of that economy of scale and because of that cushioning effect.” Sales in emerging markets have jumped from $8 billion in 2001 to $21 billion in 2007, when P&G had $76.5 billion total, and McDonald said the company expects them to comprise 30 percent of all sales by 2010. “We're excited about all the developing markets,” said McDonald, as P&G sees big opportunities for building on strong sales growth in China and India. “Our business is booming in both geographies,” McDonald said, adding that P&G is also increasing sales in countries such as Brazil and Russia, and in the Middle East markets. P&G reported on Jan. 31 that earnings rose 14 percent and revenues 9 percent for its second fiscal quarter, with double-digit sales and volume growth in developing markets. In an interview with the Associated Press on Wednesday in Cincinnati at P&G headquarters, McDonald also said the company was keeping an eye on Cuba, still under a US trade embargo that has given European competitors a head start. McDonald, a veteran of P&G's Asian business who also served as vice chair for global operations, became chief operating officer last year in a realignment of top executives. Susan Arnold, who was vice chair of the beauty and health unit, became president of global business units, among other changes. McDonald described the moves as a response to the company's growing size. “Our restructuring, which is a continuing evolution for us, is all about becoming more and more deliberate,” he said. “You've got to be very deliberate about your growth and your strategies and your execution of those strategies. You can't allow anything to just be serendipitous.” __
