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Saudization seen to slow down retail sector

Saudi wealth management firm, NCB Capital, has said the government’s Saudization drive will lead to a short-term slowdown in the retail sector, due to lower demand and higher wages pressuring margins, Arab News has reported. “However, we view this period as an opportunity to enter stocks for the long-term,” said Farouk Miah, CFA, head of equity research at NCB Capital. “Macroeconomic drivers in Saudi Arabia remain strong with consolidation of fragmented sectors supporting the long-term growth outlook for stocks under our coverage,” he said.