Saudi retail market set to grow value, says OBG

RetailME Bureau

The retail market in Saudi Arabia is projected to grow at an estimated value of $73.6 billion by end of 2014 compared to $66.7 billion in 2012, states an Oxford Business Group (OBG) report. Per capita spending in retail markets is expected to increase to $4,000 by 2015, or higher by 50% compared to figures of 2010.

The projected growth of the retail market is attributed to many factors including high rates of consumption, growing population and expansion of incomes. Rising youth population and consumers has triggered firms, businesses and factories to open new branches and outlets which, in turn, led investors open more stores, hypermarkets and open-and-closed malls in different parts of the Kingdom.

Manufactured items for direct use captured 38.5% of the market share whereas electronic devices, textiles and clothes, sanitary items and cosmetics accounted for 27.3%, 23.3% and 17.9%, respectively.