Why do business in Saudi Arabia?
A country with phenomenal growth prospects
Local food producers and manufacturers are enjoying a boom in Saudi and global firms are also benefiting from the outstanding potential. This is a secure country with a low cost exporting base, which is experiencing a significant rise in consumption.
Saudi Arabia is the only market in the Gulf region that can realistically provide investors with substantial long-term growth prospects.
SAUDI ARABIA IN FACTS
- Saudi Arabia has the largest population in the GCC region and counts 29 million residents with an annual population growth rate of 3.3%. Over 50% of the population is under 25 years old, and the youth of KSA are particularly susceptible to Western consumer trends
- Saudi Arabia is the biggest dairy consumer among GCC states, accounting for 74% of the market volume
- Saudi Arabia's food consumption is forecast to grow by an enviable 55.3% in 2016 to reach a value of US $66 billion, outperforming other regional markets
- Saudi Arabia's mass grocery retail (MGR) sector demonstrates growth of 66.6% with ongoing store launches across the core hypermarket and supermarket segments
- Food and agricultural imports account for 15% of all imports, and are worth US $17.3 billion, with expected growth by 76% by 2016, making KSA the largest market in the Gulf
- Domestic food consumption and grocery retail transactions are poised to increase by 9.75% and 11.7% accordingly by the end of this year
- 2012 mass grocery retail sales growth = 11.7%; forecast growth to 2016 = 66.6%