Saudi Arabia Retail Sector Overview - June 2010
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Garnering a robust share of 10 percent in the GDP, the Retail sector in the Kingdom of Saudi Arabia is poised to be the largest and fastest growing market in the Middle East and North African territory. The Kingdom of Saudi Arabia is the largest and fastest growing retail market in the Middle East and North Africa (MENA) region. The US$ 0.37 billion economy is home to the world’s richest population with large disposable incomes, a large proportion of fast urbanizing population that are young and whose tastes are predominantly influenced by global fashions and modern gadgetry such as satellite television.
The fast changing retail market is witnessing a plethora of changes from the traditional mom and pop stores to the growth in supermarkets and hypermarkets, as consumer preferences shift to greater awareness of brands. The cost consciousness of consumers in the kingdom has also led to the growth of private labels and supermarkets have offered consumers value for money, leading to a mushrooming growth of this retail format in the kingdom.
While the global economic slowdown in 2009 had mixed effects on the countries across the Middle East, the Kingdom of Saudi Arabia (KSA), despite the contraction in its GDP, emerged as a buoyant economy in terms of retail growth and attractiveness for global investors.
Adding to these inherent macroeconomic drivers to the growth of the industry, the country is also the traditional hub of religious tourism, housing two of the world’s largest shrines, Mecca and Medina, which further add fillip to the growth of retail spend per capita in the region. Retail expenditure per capita in the Kingdom grew from US$ 1,825 in 2005 to US$ 2,439 in 2009. Food and grocery, Apparel, Automotive and Furniture have been the major recipients of this increased spending.
Ventures Middle East with its vast experience on up to date tracking of projects across industries and countries in the Middle East has aimed to explore the main areas of growth in the retail market and the prime forces driving the growth of this emerging retail market in the MENA region and also outline the main restraints to the growth of the market over the coming years.
Key Highlights of the study includes a probability impact matrix of the drivers and restraints, a competitive overview of the retail sector in KSA besides providing detailed and vital statistics on retail revenues.
Garnering a robust share of 10 percent in the GDP, the Retail sector in the Kingdom of Saudi Arabia is poised to be the largest and fastest growing market in the Middle East and North African territory. The Kingdom of Saudi Arabia is the largest and fastest growing retail market in the Middle East and North Africa (MENA) region. The US$ 0.37 billion economy is home to the world’s richest population with large disposable incomes, a large proportion of fast urbanizing population that are young and whose tastes are predominantly influenced by global fashions and modern gadgetry such as satellite television.
The fast changing retail market is witnessing a plethora of changes from the traditional mom and pop stores to the growth in supermarkets and hypermarkets, as consumer preferences shift to greater awareness of brands. The cost consciousness of consumers in the kingdom has also led to the growth of private labels and supermarkets have offered consumers value for money, leading to a mushrooming growth of this retail format in the kingdom.
While the global economic slowdown in 2009 had mixed effects on the countries across the Middle East, the Kingdom of Saudi Arabia (KSA), despite the contraction in its GDP, emerged as a buoyant economy in terms of retail growth and attractiveness for global investors.
Adding to these inherent macroeconomic drivers to the growth of the industry, the country is also the traditional hub of religious tourism, housing two of the world’s largest shrines, Mecca and Medina, which further add fillip to the growth of retail spend per capita in the region. Retail expenditure per capita in the Kingdom grew from US$ 1,825 in 2005 to US$ 2,439 in 2009. Food and grocery, Apparel, Automotive and Furniture have been the major recipients of this increased spending.
Ventures Middle East with its vast experience on up to date tracking of projects across industries and countries in the Middle East has aimed to explore the main areas of growth in the retail market and the prime forces driving the growth of this emerging retail market in the MENA region and also outline the main restraints to the growth of the market over the coming years.
Key Highlights of the study includes a probability impact matrix of the drivers and restraints, a competitive overview of the retail sector in KSA besides providing detailed and vital statistics on retail revenues.
Executive summary
2. KINGDOM OF SAUDI ARABIA – THE EMERGING RETAIL MARKET OF 2010
3. MARKET OVERVIEW THE RETAIL SECTOR IN THE KINGDOM OF SAUDI ARABIA
Retail Formats and Retail space
Key Retail Segments and Players
Grocery Retail
Apparel
Automotive
Furniture
Consumer Electronics
Ecommerce and Growth of Non Store Retailing
Drivers and Restraints to the Growth of the KSA Retail Industry
4. OVERVIEW OF THE KSA HOSPITALITY SECTOR
5. OVERVIEW OF KSA REAL ESTATE
Residential Real Estate Segment
Sectoral Growth in the Residential Segment
Commercial Real Estate Segment
6. COMPETITIVE OVERVIEW OF THE KSA RETAIL MARKET
Supplier Power
Imports Fuel Supplier Power in Necessities
Brand Consciousness Improves Supply Power
Rivalry
Corporate buy outs and Amalgamations
Entry Barriers
Import Regulations and Barriers to Entry
Buyer Power
Large disposable incomes, well developed credit system and higher standards of living
Stock Market Impacts Retail Consumer Spending
Development of Six Economic Cities to Boost All Round Development and Retail Shopping Opportunities
Substitutes
Dubai Retail Market and Shopping Festival
Profiles of Key Retail Giants across Retail Segments in KSA
7. FUTURE OUTLOOK FOR THE KSA RETAIL INDUSTRY
Key Cities:
Currency and Time Zones:
Workdays:
Procedures for Starting a business in Saudi Arabia
Ventures MENA Projects Database
2. KINGDOM OF SAUDI ARABIA – THE EMERGING RETAIL MARKET OF 2010
3. MARKET OVERVIEW THE RETAIL SECTOR IN THE KINGDOM OF SAUDI ARABIA
Retail Formats and Retail space
Key Retail Segments and Players
Grocery Retail
Apparel
Automotive
Furniture
Consumer Electronics
Ecommerce and Growth of Non Store Retailing
Drivers and Restraints to the Growth of the KSA Retail Industry
4. OVERVIEW OF THE KSA HOSPITALITY SECTOR
5. OVERVIEW OF KSA REAL ESTATE
Residential Real Estate Segment
Sectoral Growth in the Residential Segment
Commercial Real Estate Segment
6. COMPETITIVE OVERVIEW OF THE KSA RETAIL MARKET
Supplier Power
Imports Fuel Supplier Power in Necessities
Brand Consciousness Improves Supply Power
Rivalry
Corporate buy outs and Amalgamations
Entry Barriers
Import Regulations and Barriers to Entry
Buyer Power
Large disposable incomes, well developed credit system and higher standards of living
Stock Market Impacts Retail Consumer Spending
Development of Six Economic Cities to Boost All Round Development and Retail Shopping Opportunities
Substitutes
Dubai Retail Market and Shopping Festival
Profiles of Key Retail Giants across Retail Segments in KSA
7. FUTURE OUTLOOK FOR THE KSA RETAIL INDUSTRY
Key Cities:
Currency and Time Zones:
Workdays:
Procedures for Starting a business in Saudi Arabia
Ventures MENA Projects Database
LIST OF FIGURES
Figure 1: Imports by Source, Saudi Arabia, 2009
Figure 2: Exports by Destination, Saudi Arabia, 2009
Figure 3: Imports by Category, Saudi Arabia 2009
Figure 4: Non-oil Exports by Category, Saudi Arabia, 2009
Figure 5: KSA Shares of the Retail Sector in GDP 2009
Figure 6: GLA per Capita of GCC Member Capital Cities, 2010
Figure 7: Saudi Arabia GDP and Population- Saudi and Non-Saudi, 1999-2009
Figure 8: Age-Sex Distribution of the Population of Saudi Arabia, 2009
Figure 9: Cost of Living Index by Category for the Kingdom of Saudi Arabia from 1999-2009
Figure 10: Consumption Expenditures and Disposable Income, Saudi Arabia, 2005-2009
Figure 11: Retail Sales per Capita in Saudi Arabia, 2000-2010
Figure 12: Point of Sale Transactions in Saudi Arabia, 2000-2009
Figure 13: Inbound and Local Tourism Expenditure for the Kingdom of Saudi Arabia by Category, 2009
Figure 14: Growth in Tourism Expenditure 2005 to 2009
Figure 15: Completed GLA for the Countries in the GCC, 2010
Figure 16: Estimated GLA across the Countries of the GCC, 2010
Figure 17: Competitive Overview of KSA Retail Industry
Figure 18: Saudi Stock Market Index (1999=100), 2000-2009
Figure 1: Imports by Source, Saudi Arabia, 2009
Figure 2: Exports by Destination, Saudi Arabia, 2009
Figure 3: Imports by Category, Saudi Arabia 2009
Figure 4: Non-oil Exports by Category, Saudi Arabia, 2009
Figure 5: KSA Shares of the Retail Sector in GDP 2009
Figure 6: GLA per Capita of GCC Member Capital Cities, 2010
Figure 7: Saudi Arabia GDP and Population- Saudi and Non-Saudi, 1999-2009
Figure 8: Age-Sex Distribution of the Population of Saudi Arabia, 2009
Figure 9: Cost of Living Index by Category for the Kingdom of Saudi Arabia from 1999-2009
Figure 10: Consumption Expenditures and Disposable Income, Saudi Arabia, 2005-2009
Figure 11: Retail Sales per Capita in Saudi Arabia, 2000-2010
Figure 12: Point of Sale Transactions in Saudi Arabia, 2000-2009
Figure 13: Inbound and Local Tourism Expenditure for the Kingdom of Saudi Arabia by Category, 2009
Figure 14: Growth in Tourism Expenditure 2005 to 2009
Figure 15: Completed GLA for the Countries in the GCC, 2010
Figure 16: Estimated GLA across the Countries of the GCC, 2010
Figure 17: Competitive Overview of KSA Retail Industry
Figure 18: Saudi Stock Market Index (1999=100), 2000-2009
LIST OF TABLES
Table 1: Major Economic Indicators for the Kingdom of Saudi Arabia, 2005-2009
Table 2: Hotel Occupancy and Average Rent per Room across Regions of the KSA
Table 3: Residential Segment Rents across Regions of the KSA, 2009.
Table 4: Rents in the Commercial Segment across Key Regions in the KSA, 2009
Table 1: Major Economic Indicators for the Kingdom of Saudi Arabia, 2005-2009
Table 2: Hotel Occupancy and Average Rent per Room across Regions of the KSA
Table 3: Residential Segment Rents across Regions of the KSA, 2009.
Table 4: Rents in the Commercial Segment across Key Regions in the KSA, 2009
