JEDDAH, 15 May 2005 — With its rapidly increasing population and their changing lifestyle, Saudi Arabia’s market for consumer goods and fashion accessories is expanding on a gigantic scale. “The market for consumer goods and lifestyle products runs into billions of riyals,” Jeddah Chamber of Commerce Industry Secretary General Mohammed A. Al-Shareef said.
Name any consumer item, whether clothing or textiles, or leather product or giftware, there is a captive market for all of them both among Saudis who constitute more than three quarters of the estimated over 23 million population or its large expatriate population belonging to various nationalities.
The Kingdom’s economy not only continues to be buoyant but in its best form ever. Additionally, the continually rising oil prices are adding to its revenues and there is growth on many fronts including industry.
So with the increasing cash flow coupled with rising consumer spend, exporters of varieties of consumer goods, as well as light industries and machinery from the world over are finding the Kingdom one of the most lucrative markets in the world. The Kingdom’s light industries are expanding and so they need machinery and raw materials. Exporters from the world over can find the Kingdom a potentially rich market in this regard. There is a rapid growth of consumerism with the growing demand for consumer goods. “Almost all multinational companies from the world over have been targeting this market for their consumer products,” said a spokesman for Al-Harithy Company for Exhibitions Ltd. (ACE), which is organizing a five-day international trade fair here from today.
“Demand for consumer items is so great that there is a market for each player and each newcomer,” a fashion outlet manager at Jeddah Mall said. “Clothing and textiles are a big market, as young Saudis are a sizeable lot and their lifestyle is continuously changing for the better. Well known brands have already established themselves in this market with their stylish textile products and dresses. Those for women and children are especially in demand. The number of outlets mushrooming in the rapidly growing shopping malls substantiate this,” he added.
With women increasingly attending schools and colleges and even aspiring for jobs, the market for fashions and fashion accessories is also maintaining a fast pace. “Whether jewelry or perfume, demand is there for it and will continue to increase,” says Mohammed Al-Attas, at a gold jewelry outlet in Balad.
Giftware is a huge market in the Kingdom as buying gifts for relatives and friends is a tradition, especially on the occasion of the holy month of Ramadan or Haj.
Demand for light industries and machinery is also expanding thanks to the Kingdom’s privatization plans. The process of economic liberalization is creating an environment that is more attractive to private investment thereby marking strong growth in the private sector. Privatization, which has resulted in more inflow of foreign direct investment, has already started showing a positive impact on the industrial sector, with many Saudis venturing into light industries either for self-employment or as a matter of diversification.
As a result of increased investment, which is also attributed to the repatriation of funds from abroad, especially in the past more than three years, the manufacturing sector has benefited a great deal. With Saudis venturing into light industries, demand for machinery is on the increase.
Alongside many Saudi national companies, a dozen countries are participating in the fair dubbed as Saudi Arabia’s multisectoral trade expo. They include China, Hong kong, India, Indonesia, Malaysia, Pakistan, Thailand, Turkey and Iran. Individual companies from Egypt, Lithuania, Lebanon, Germany and the UAE are also taking part. The Pakistani pavilion will feature seven Pakistani companies, said Hijab Gul, commercial consul, Consulate General of Pakistan, Jeddah.
“Pakistani stalls will display their full range of products including wooden products, textile, carpets and leather,” Gul added.
India is represented by two business delegations, said Ashok Kumar, consul commercial, at the Consulate General of India.
