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New Market Study Published: Saudi Arabia Retail Report Q1 2013

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2013-03-02 15:44:10 - New Retailing research report from Business Monitor International is now available from Fast Market Research

The Saudi Arabian Retail Report examines the long-term potential of the local consumer market, but flags short-term concerns about the impact of a possible cutback in government spending on Saudi Arabia's economic outlook should the fiscal and current account position deteriorate.

The report examines how best to maximise returns in the Saudi retail market while minimising investment risk, and also explores the impact of slowing export growth on the Saudi consumer and on the ability of producers and exporters to realise returns in the short term.

Full Report Details at
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The report also analyses the growth and risk management strategies being employed by the leading players in the Saudi retail sector, as they seek to maximise the growth opportunities offered

by the local market. Saudi per capita consumer spending is forecast to increase by 21.9% to 2016, compared with a regional growth average of -2.7%. The country comes second (out of seven) in BMI's Middle East and Africa (MEA) Retail Risk/Reward Ratings, although it underperforms significantly for risk.

Among all retail categories, mass grocery retail (MGR) will be one of the outperformers between 2013 and 2017 in growth terms, with sales forecast to increase by 47%, from US$32.70bn to US$48.26bn, as high disposable incomes among a proportion of the population create an increasingly aspirational consumer base interested in premium products.

In the competitive arena, BMI sees upside potential in the fact that non-organised retail and independent outlets still account for more than 40% of total sales, which is strong evidence that significant scope remains for the penetration of organised grocery retailing.

Over the last quarter, BMI has revised the following forecasts/views:

* The Saudi economy will continue to grow at a rapid pace throughout 2013, powered by high government spending and a steady expansion of the private sector. With domestic consumption remaining buoyant, a bright medium-term outlook for fixed investment and macroeconomic policy staying supportive, BMI maintains its forecast for real GDP growth to expand by 5.2% and 4.5% in 2012 and 2013 respectively.
* BMI maintains its positive outlook for private consumption in the near term, forecasting an expansion of 6.0% in 2012 and 5.0% in 2013. Nearly all leading indicators pointed to higher spending throughout 2012: the value of point-of-sale transactions increased by a monthly average of 26.7% in the first eight months of the year, while the value of cash withdrawals from ATMs averaged SAR54.2bn between June and August, an amount surpassed only in April 2011

541270 325916## BMI View: Swedish IT spending is expected to reach US$17.5bn in 2013, up 5%, with BMI upwardly revising its forecast as the market continued to generate opportunities in Q1-Q3 2012, despite the economic headwinds from the eurozone. The IT market is expected to grow, but consumer and business confidence are vulnerable to external economic developments, particularly in the eurozone. Drivers of Swedish IT spending purchases of computers for schools, a new national digital agenda and growing interest in cloud computing services.

Headline Expenditure Projections

Computer Hardware Sales: US$3.6bn in 2012 to US$3.8bn in 2013, +5% in US dollar terms. Forecast in US dollar terms unchanged, but there should be a stimulus from Windows 8 tablets and ultrabooks.

Software Sales: US$5.2bn in 2012 to US$5.5bn in 2013, +5% in US dollar terms. Forecast in US dollar terms unchanged but cloud computing services such as software-as-a-service (SaaS) are likely to be used more in Sweden over BMI's forecast period.

IT Services Sales: US$7.9bn in 2012 to US$8.2bn in 2013, +5% in US dollar terms. Forecast in US dollar terms unchanged but there should be more spending by sectors such as financial services, retail and telecoms.

Risk/Reward Ratings: Sweden's score was 75.9 out of 100.0. Sweden retains its third place ranking in our latest Europe RRR table, behind Germany and the UK, but ahead of France and CEE countries. The country benefited from an improved industry rewards score of 63.3, and its overall ranking received a further boost from a high country rewards score of 90.

Key Trends & Developments.

* Continuing economic uncertainty in the eurozone and tight credit conditions have the potential to hamper demand in the medium term, but there will be opportunities in verticals such as retail and financial services.
* The consumer PC segment is also expected to remain constrained, despite growth opportunities. Disposable income is growing slowly, with minimal overall wage pressure, and this has taken a toll on purchases of consumer lifestyle products such as PCs and tablets.
* The government's Swedish Digital Agenda is likely to create opportunities in various segments, ranging from healthcare to education and enterprise. Meanwhile, cloud computing is gradually being adopted across the public and private sectors, with a number of new cloud-based services launched in 2012.

About Business Monitor International

Business Monitor International (BMI) offers a comprehensive range of products and services designed to help senior executives, analysts and researchers assess and better manage operating risks, and exploit business opportunities, across 175 markets. BMI offers three main areas of expertise: Country Risk BMI's country risk and macroeconomic forecast portfolio includes weekly financial market reports, monthly regional Monitors, and in-depth quarterly Business Forecast Reports. Industry Analysis BMI covers a total of 17 industry verticals through a portfolio of services, including in-depth quarterly Country Forecast Reports. View more research from Business Monitor International at

About Fast Market Research

Fast Market Research is an online aggregator and distributor of market research and business information. We represent the world's top research publishers and analysts and provide quick and easy access to the best competitive intelligence available.

For more information about these or related research reports, please visit our website at or call us at 1.800.844.8156.

Bill Thompson
Phone: 18008448156

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