Kingdom’s retail sales to reach Sr394bn by 2015

JEDDAH: The Kingdom’s retail sales are expected to grow from an expected SR256.13 billion ($68.39bn) in 2011 to SR394.13 billion ($105.24bn) by 2015, according to a new report from Research and Markets.

It provides industry professionals and strategists, corporate analysts, retail associations, government departments and regulatory bodies with independent forecasts and competitive intelligence on the industry.

Principal factors behind the forecast growth in Saudi Arabia’s retail sales are: Strong underlying economic growth, rising disposable incomes, increasing acceptance of the concept of modern retailing, a youthful population and an enlarged consumer base created

the improved position of women in society. Saudi Arabia’s nominal GDP in 2011 is predicted to be $464.3 billion, with growth of 6.3 percent in real terms expected for the year.

Average annual real GDP growth of 4 percent is predicted by BMI between 2011 and 2015, according to the Business Wires press release. With the population increasing, GDP per capita is predicted to rise to $21,260 by the end of the forecast period.

The retail sector benefits from the large number of tourists visiting the country to take part in the Haj and Umrah pilgrimages every year.

Sales of gifts and souvenirs in 2008 were estimated to have risen by at least SR4 billion due to shopping by Haj pilgrims, according to media reports.