Market

Saudi Retail Food

TO HIT US$ 100 BILLION

The Economist Intelligence Unit (EIU) forecasts Saudi retail sales to exceed US$ 100 billion this year for the first time and rapidly grow to US$ 134 billion by 2018, as rising population and affluence positively impacts virtually every segment of the retail sector: from grocery to furniture and electronics. The Saudi population is expected to reach 33 million, according to the EIU and disposable income should nearly double to US$ 11,700 by 2018, compared with US$ 6,000 in 2011.
Following facts further endorse Saudi Arabia as the largest market in the GCC

 

  • Largest food producer in the GCC, accounting for 74.1 per cent of the total production.
  • Food sales account for half of the domestic retail market in the country and are expected to reach US$ 70 billion by 2017.
  • Food consumption is expected to grow at a CAGR of 2.6 per cent during 2012 to 2017 driven by rising population and per capita income.
  • Leading Saudi and international retailers expanding operation in response to stiff competition and changing food habits.
 Saudi FOOD

Saudi FOOD

History

Largest Market In The GCC

$0 Food Sales
0% Largest Food Producer

HOSPITALITY INDUSTRY DRIVING BUSINESS

Recent reports indicate that the hospitality industry can expect a promising future, with its estimated value reaching US$ 93 billion over the next five years. On the other hand, the Hospitality Industry Committee at the Jeddah Chamber of Commerce recently revealed that about 300,000 jobs in various hospitality establishments in the Kingdom are currently available.

POSITIVE INDICATORS

  • A projected positive growth in GDP until 2017.
  • There is an increased demand for new hotels and refurbishment of existing ones.
  • The country has recorded a steady increase in demand within all national hospitality related sectors.
  • The US$ 15 billion Saudi Arabian tourism revenue is expected to surpass US$ 65 million by 2020.
  • Tourism activities in Saudi Arabia are centered on the holy cities of Makkah and Madinah in the western region of the Kingdom.
  • Saudi Arabia is a member of the Gulf Cooperation Council common market and provides a lower-cost export base than some neighboring countries.

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