Saudi retail sector sees healthy growth on e-commerce, changed consumer patterns: Experts
Mohammed Dhedhi, Partner in Kearney Middle East & Africa (MEA), estimated that Saudi Arabia's retail sector is worth around SAR 160 billion, with an annual growth rate of 4–5% in 2024, reflecting a healthy sector performance.
He explained that this growth is primarily driven by rising prices due to inflation rather than an increase in sales volume, indicating that consumers are purchasing fewer items but at higher prices.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Argaam
2 hours ago
- Argaam
Jamjoom Pharma ups profit margin forecast to 33%: CEO
Tarek Youssef Hosny, CEO of Jamjoom Pharmaceuticals Factory Co. (Jamjoom Pharma), said he expects the company to continue growth and achieve added value, saying that the forecast for the EBITDA margin for 2025 was raised to a range between 31.5-33%, from previous estimates of 30-31.5%, following the company's performance in the first half of the year. In an interview with Argaam, the top executive said that Jamjoom Pharma maintained its exceptional performance during H1 2025, attributing the continued growth to the strong momentum achieved in the first quarter, reflecting the resilience of its strategy in a dynamic operating environment, by focusing on strategic brands, improved operational efficiency, and disciplined cost management. He indicated that enhanced operational efficiency in research and development, manufacturing, and distribution contributed to boost profitability while maintaining a commitment to innovation and quality, adding that the company also continued to strengthen its key partnerships, launch new products, and continue its sustainability efforts. Meanwhile, the company's sales witnessed strong momentum across key markets during H1 2025. The Saudi market continued to drive growth, with revenues rising by 20.6% to SAR 577.8 million, accounting for more than two-thirds of the company's total revenue. Gulf markets accounted for SAR 107.7 million, led by the UAE and Oman, while sales in the Iraqi market grew by 27.3% to SAR 83.2 million, according to the top executive. He also highlighted that revenue from the Egyptian market grew by 12.8% in Egyptian pound, but declined when converted to Saudi riyals due to the depreciation of the Egyptian pound. Meanwhile, revenue from other export markets amounted to SAR 48.4 million, down 10% due to regional tensions in Jordan and Lebanon. However, export growth in Morocco and Libya helped mitigate the negative impact. Hosny also stated that the company is currently re-evaluating its distribution channels to ensure margin sustainability and achieve lower-risk growth in those markets. The company's H1 revenue was backed by several therapeutic areas, most notably general medicine, which grew by 37.7%. The ophthalmology and dermatology segments together accounted for 43.1% of topline. The diabetes drug portfolio grew by 71.5%, while cardiovascular treatments saw a 31.1% increase in sales, he added. Total production at the company's three plants reached 86 million units during H1, topped by the Jeddah plant with 68 million units at a utilization rate of 90.5%. Production at the Egypt plant grew by 54.1%, reaching 14 million units. The new sterile products plant in Jeddah continued its expansion, doubling its annual output to 4 million units with a utilization rate of 32.2%, which supported supplies in ophthalmology and sterile product segments, according to the CEO. As regards the Algeria project, Hosny said the project contributed SAR 6.5 million to H1 profit, as part of the company's expansion strategy in North Africa, while leveraging local manufacturing to enhance efficiency and reduce costs. He noted that this provides a solid platform for future expansion into neighboring North and West African markets. He also highlighted that the company will continue expanding into high-value therapeutic areas, accelerating regional expansion initiatives, and strategically investing in research and development and business alliances, especially in its core focus areas, with disciplined spending and a scalable platform.
Leaders
3 hours ago
- Leaders
Saudi-Syrian Investment Forum: $6.4bn Worth of Deals Signed to Support Reconstruction
The Saudi-Syrian Investment Forum 2025 has concluded in Damascus, announcing deals worth of SAR 24 billion ($6.4bn) to support Syria's economic recovery and reconstruction. Furthermore, the Forum witnessed the establishment of the Saudi-Syrian Business Council to boost economic cooperation and promote Saudi investments in the promising Syrian market. Saudi-Syrian Investment Forum 2025 On Thursday, Damascus hosted the Saudi-Syrian Investment Forum, with the attendance of the Syrian Transitional President, Ahmed Al-Sharaa, and several senior officials and executives from Saudi Arabia and Syria. The Saudi Investment Minister, Khalid Al-Falih, led the Kingdom's delegation, which comprised more than 20 government entities and over 100 leading private companies with international investments in various sectors, such as energy, industry, infrastructure and real estate, financial services, health, agriculture, and communications and information technology (ICT). Saudi Unwavering Support During his speech, Al-Falih reaffirmed Saudi Arabia's unwavering support for Syria in its path toward growth, economic prosperity, and sustainable development, highlighting the deeply-rooted historical bonds between the two nations. He added that this visit, which came upon the directives of the Saudi Crown Prince and Prime Minister, Mohammed bin Salman, underscores the Kingdom's commitment to strengthening its economic and investment ties with Syria. Moreover, he said that forum emphasizes the pivotal role of the private sector in realizing the two countries' common goals and encouraging Saudi and international investors to explore promising investment opportunities Syria and contribute to its strategic projects. In April, Saudi Arabia and Qatar committed to settling Syria's outstanding arrears to the World Bank Group, which stands at $15 million, in order to support and accelerate the recovery of Syria's economy. Furthermore, the Kingdom led regional and international efforts to lift Western sanctions on Syria, which culminated in a landmark decision by the US President, Donald Trump, to lift the decades-long sanctions, upon the request of Crown Prince Mohammed bin Salman. Infrastructure Deals Al-Falih announced the signing of 47 agreements on the sidelines of the Saudi-Syrian Investment Forum, worth of SAR 24 billion, covering various fields including real estate, infrastructure, finance, energy, industry, tourism, trade and investment, health, and ICT. In infrastructure, deals valued at over SAR 4.3 billion were signed, including the construction of three cement factories in Syria to support supply chains and achieve self-sufficiency during the country's reconstruction process. In the light of this, Al-Falih on Wednesday inaugurated the Fayhaa White Cement Factory in Adra Industrial City, valued at SAR 100 million, to expand cement production in Syria. Real Estate Projects The Saudi-Syrian Investment Forum saw the signing of SAR 7.2 billion real estate deals, including projects to rebuild Syria's infrastructure and develop facilities across the country. Moreover, the Saudi Minister launched Al-Jawhara Tower Project, a SAR 375 million Saudi-led real estate project in Damascus spanning 25,210 square meters and including office, hospitality, and retail components across 32 floors. Al-Falih also announced that Bayt Al-Ebaa Company will sign a multi-billion agreement to build a distinctive residential and commercial project in Homs city. These projects provide a model for the integration of Saudi capital and Syrian local expertise to achieve sustainable social and commercial goals. ICT Deals As for the telecommunications sector, the forum saw the signing of agreements worth of SAR 3.6 billion, involving partnerships between the Syrian Ministry of Communications and major Saudi tech firms such as STC and Elm. The agreements aim to develop Syria's digital infrastructure and enhance cybersecurity. They also aim to build advanced ecosystems for artificial intelligence (AI), data centers, and educational academies, according to Al-Falih. Agriculture Cooperation In the agriculture sector, the Saudi Minister expressed aspirations to cooperate with Syria in developing high-quality joint projects, including model farms and processing industries. He highlighted promising opportunities in the fields of modern agriculture, grain production, organic products, and food supply chains. Financial Sector In terms of finance and banking, the forum witnessed the signing of SAR 4.8 billion agreements, as well as a key memorandum of understanding (MoU) between Saudi Tadawul Group and the Damascus Securities Exchange. The MoU aims to boost cooperation in sectors such as fintech, dual listings, and data exchange. It also includes launching new investment funds to promote investments in Syria. Syrian Investments in Saudi Arabia During his speech, Al-Falih highlighted Syrian investments in Saudi Arabia, which currently amount to SAR 10 billion ($2.66bn), pointing to the vital role of Syrian entrepreneurs in rebuilding Syria and reviving its economy. He also commended measures taken by the Syrian government to create a more investment-friendly environment, including facilitating investment procedures and enhancing transparency. Saudi-Syrian Business Council Al-Falih announced the formation of the Saudi-Syrian Business Council – a move that further underscores Saudi Arabia's commitment to encouraging investments in Syria. Chaired by the prominent businessman, Mohammed Abunayyan, the joint business council will comprise an elite of Saudi businessmen. It aims to advance economic cooperation, activate partnerships between private sector companies in both countries, and boost Saudi investments in the Syrian market. Short link : Post Views: 116
Arab News
11 hours ago
- Arab News
South Sudan faces legal battle in London amid oil debt crisis, political turmoil
LONDON: Trading house BB Energy has filed a case against South Sudan in London for failing to deliver oil owed under a pre-payment deal, according to court filings and a company spokesperson. One of the poorest countries in the world, South Sudan has endured two civil wars in the past 15 years and is grappling with increased debt and a shaky peace deal. In March, the government placed its petroleum minister, as well as other officials, under house arrest. BB Energy DMCC filed the case last month, court records showed. A company spokesperson told Reuters the action was necessary to preserve BB Energy's rights under a contract with the Ministry of Petroleum. "As yet, they have defaulted on delivery," the spokesperson said. "We are currently in the process of serving formal proceedings; however we are always looking to find an amicable solution, especially considering our long-term interests in the country." Officials in South Sudan did not immediately respond to a request for comment on the case. Oil trader Vitol also filed a case against South Sudan in London in May, but said it had since resolved the issue. Sources told Reuters that case related to a single cancelled oil cargo. In May, a London court ordered South Sudan to pay Afreximbank $657 million over defaulted loans. The IMF pegged South Sudan's total public debt at $3.7 billion as of 2023, with $550 million of the total owed to oil companies. At its peak before the civil war, South Sudan's crude oil production stood at 350,000 to 400,000 barrels per day, but that tumbled to just 72,000 bpd last year, according to OPEC data, after a damaged oil pipeline halted exports. The pipeline resumed operations in June, and the country pumped 138,000 bpd that month.
