Saudi Arabia Food & Drink Report Q2 2018
The outlook for Saudi Arabia's food and drink sector will improve from 2018 onwards, as stronger economic growth andinflationary pressures help to drive headline growth in food and drink sales. New regulatory challenges, including the introduction ofVAT, a 'sin tax' on sugary drinks and tobacco, and restrictions on non-Saudi employees in the grocery retail sector, will increaseoperating risks for companies. However, rising disposable incomes, a large youthful consumer base and increasing demand forpremium products underpin our view that the long-term rewards on offer in Saudi Arabia outweigh the risks.
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