Consumer durables is a cataloguing of consumer goods that are not essential to be bought very often as they are fashioned in a way so as to last for an extended period of time. Profits in the consumer durables sector were most profoundly…
BMI View: Saudi Arabia will face growing economic headwinds over 2016, with the non-oil sector under
pressure on the back of reduced government spending. Food and Drink sales will gradually decline as
consumer sentiment slows over this period. The Saudi Arabian market still holds positive long-term growth
opportunities as the consumer outlook remains favourable owing to its young and growing population as
well as rising urbanisation.
Key Views & Developments
? Saudi Arabia's favourable demographics will boost food sales, as the country benefits from a large
consumer base and high per capita food consumption.
? There are plans to implement a tax on energy drinks and soft drinks to combat high consumption of
? On June 13 2016, Saudi Arabia's 75% limit on foreign investment was lifted to 100% ownership for
foreign companies within the wholesale and retail sector.