About the Retail Market in Saudi Arabia
The increase in oil prices between 2003 and 2013 brought prosperity in Saudi Arabia and it became the world's 90-largest economy. The hike in oil prices brought growth across sectors, and the GDP; household income; employment levels; and government investments in health, infrastructure, and education increased. However, the government cannot rely solely on revenue from fuel since the global energy market dynamics is changing and demographics of the country is expected to transition with an increasing number of working-age Saudi Arabians by 2030.
Technavio’s analysts forecast the retail market in Saudi Arabia to grow at a CAGR of 7.45% during the period 2016-2020.
Covered in this report
The report covers the present scenario and the growth prospects of the retail market in Saudi Arabia for 2016-2020. To calculate the market size, the report has taken into account the revenue generated from retail sales of the products offered.
The market is divided into the following segments based on products:
Technavio Announces the Publication of its Research Report – Retail Market in Saudi Arabia 2016-2020
Technavio recognizes the following companies as the key players in the retail market in Saudi Arabia: Alhokair Fashion Retail, Al Othaim, Jarir, Savola, Saudi Marketing Company (FARM Superstore), and United Electronics (eXtra).
Other Prominent Vendors in the market are: Anwal United Trading, AlJammaz, Azizia Panda, BinDawood, Carrefour Saudi Arabia, Etre, Fawaz Al Hokair, Landmark Group, Lulu Hypermarket, And Umark.
Commenting on the report, an analyst from Technavio’s team said: “A trend which is helping boost market growth is the demand for luxury products. The Saudi population is generally very traditional; however, their increasing exposure to international fashion brands is encouraging them to try out new styles and designs and incorporate them into their culture. Brands such as Burberry, Prada, and Tiffany & Company have expanded their presence in the country by entering the market through boutique stores rather than opting for a shop-in-a-shop concept. Luxury retailers continue to offer products that cater to the middle- and upper-middle classes.”
According to the report, the retail market in Saudi Arabia is no exception; and the rising disposable income of the population in the country has a positive impact on the growth of the market — in fact, it is one of the most important drivers of the market in the country. The expansion of the Saudi economy over the past few years has increased the consumer’s spending power in the country. In terms of disposable income, Saudi Arabia had surpassed the global average for disposable income in 2012, recording a figure of $7,500. Despite the fall in oil prices, the market in Saudi Arabia continued to enjoy a robust growth, due to its solid base of domestic consumers and growing youth population with high disposable income. port, a key growth driver is the rising disposable income and high consumer confidence index.
Further, the report states that one challenge that could hamper market growth is the unstable economic and political scenario.
Alhokair Fashion Retail, Al Othaim, Jarir, Savola, Saudi Marketing Company (FARM Superstore), United Electronics (eXtra)Anwal United Trading, AlJammaz, Azizia Panda, , BinDawood, Carrefour Saudi Arabia, Etre, Fawaz Al Hokair, Landmark Group, Lulu Hypermarket, Umark.