https://arab.news/b7udj
RIYADH: Saudi Arabia’s retail sector contributes 23 percent to the non-oil economy, and is aiming to exceed SR460 billion ($122.6 billion) by the end of 2024, according to a top official.
Majed Al-Hogail, the minister of municipal and rural affairs and housing, highlighted the pivotal role of the industry in the Kingdom’s economic landscape at the 10th Retail Leaders Circle MENA Summit in Riyadh.
He said that this area holds utmost importance as it serves as a key driver in the economy and local gross domestic product, according to a post by the ministry on X.
Speaking at the launching of the summit themed “Fearless Innovation: Charting the Next Frontiers,” Al-Hogail emphasized the sector’s multifaceted impact saying: “The retail sector is contributing 23 percent of the non-oil GDP. We seek to grow the retail sector to more than SR460 billion by the end of the year 2024.”
He added: “In our plans for the retail sector, we focused on restaurants, cafes, entertainment, and public areas. We worked on developing legislation, regulations, and requirements through fruitful integration and effective partnership with the private sector.”
Al-Hogail revealed that the occupancy rates in the retail sector in Riyadh and Jeddah reached 88 percent in 2023, and efforts have resulted in issuing no fewer than 70,000 licenses annually for the sector.
Localizing jobs is among the priorities, according to the minister. He stated, “We are working to provide diverse employment opportunities,” adding, “We are working to incentivize private sector establishments and provide an attractive environment for Saudis to work.”
In a major announcement during the summit, Panos Lenardos, chairman of the Retail Leaders Circle, shared plans for the summit’s evolution into a government forum in the upcoming year, with Riyadh set to host the event.
The 10th-anniversary edition of the summit saw a confluence of global CEOs, senior policymakers, innovators, and investors from more than 40 countries. They represented diverse industries, including retail, real estate, tourism, and technology, driving discussions and sharing their perspectives and experiences.
The discussion themes included the new growth agenda; the lifestyle destinations frontiers; and AI and tech: powering progress. Other highlighted topics were leadership in the new normal; purpose, profit, and conscious consumerism. Another focus was on future disruption catalysts.