Saudi Arabia’s decision to open its retail market to foreign investors is set to attract SAR10 billion of foreign investments in a one-year period, according to market experts.
They say that the kingdom’s retail market is currently valued at SAR750bn and is projected to double to SAR1.5 trillion in the next five years.
In remarks to Al Eqtisadiah, a number of experts and economists stress the need to create a balance between investments of foreign companies in the kingdom and their contribution to employing Saudis and boosting the quality of goods.
Sami al-Nuwaiser, a financial analyst, says that the Saudi market is a highly lucrative market bolstered by a secure and safe investment climate and strong consumer demand.
He says that the move will boost competitiveness, thereby enhancing product quality and prices, while offering consumers a wide range of shopping options.
Other experts say that the decision to allow foreign investors to launch investments with full ownership will help trim prices by as much as 20 per cent in some sectors.
(SAR1 = AED0.9, at the time of publishing)