The Kingdom of Saudi Arabia continues to be one of the largest retail markets in the Middle East. The size of population, high proportion of young people and high levels of disposable income make Saudi Arabia the fastest growing market for consumer products in the Middle East. Moreover, retail is the fourth-largest industry in the country after oil, banking and telecom industries, both in the number of establishments and number of employees. Saudi Arabia earned around $55 billion from retail sales in 2008, up from over $37 billion in 2004. According to our new research report “Middle East Retail Sector Forecast to 2013”, population growth has been one of the main drivers of consumer goods and retail sector in Saudi Arabia. The proportion of young people in the total population is very high, with one-third of the population is below the age of 14 and almost two-third is under 30. It is in these age groups that retail purchasing is most concentrated. “We anticipate marginal effect of the 2008 financial crisis on the Saudi Arabia retail market, but it will undergo positive growth during 2009-2013. Strong economic fundamentals and well-protected banking system will shield the country from the aftermath of the financial crisis. Although the declining oil prices may be a cause for concern, it will be short-lived as improving economic conditions and increasing fuel consumption will drive the oil prices upwards,” the report said. The report showed that retail sales in Saudi Arabia are expected to reach $83 billion by 2013 at a CAGR of around 9 percent from 2009. Saudi Arabia is experiencing many positive trends in terms of consumer demand and market access, all of which will be advantageous to domestic as well as international players in order to expand their operations and to unfold the hidden opportunities. “Middle East Retail Sector Forecast to 2013” offers comprehensive research and rational analysis of the retail industry in the Middle East. It gives detailed information of the retail industry in various countries of the region with focus on every aspect underlining the key issues related to the industry. The report also helps clients to analyze opportunities and challenges critical for the success of retail industry in the region.
