Saudi Arabia ranks 5th in Global Retail Attractiveness and is among the Top 10 in the 2009 A.T. Kearney Retail Apparel Index

Demand for global clothing brands has risen by 6.3 percent from 2003-2007, says A.T. Kearney Study

Dubai (27 June 2009) — The stable economy of the Kingdom of Saudi Arabia boosts the countries retail potential and brings Saudi Arabia to 5th position in this years Global Retail Development Index (GRDI), a study of retail investment attractiveness among 30 emerging markets. Saudi Arabia has been spared from much of the global crisis due to its natural oil reserves and government investments of $400 billion for the next five years, according to global management consulting firm A.T. Kearney’s eighth annual Global Retail Development Index.

While this figure may decrease if oil prices fall, the government will continue to channel money into infrastructure and industrial diversification. The completion of King Abdullah Economic City, the first stage of which is suspected to be complete by as early as 2010, will create retail space and attract businesses. Four more economic cities will be developed in the next couple of decades, using tax incentives to attract business. Several domestic and global companies are already taking advantage of the opportunities in Saudi Arabia.

Al Othaim, Al Hokair, Panda and Carrefour have already announced 2009 to 2010 expansion plans. There are still more opportunities in Saudi Arabia, but the pace is slow, as the country remains conservative and retail is in the early stages of growth.

“Saudi’s population is young with 60 percent of its citizens under 25 years old, with strong brand awareness. An ideal place for retailers especially in the apparel industry.” said Robert Ziegler, vice president and director, A.T. Kearney, UAE.

The affluence of Saudi Arabia’s population is on of the factors that make the country attractive for fashion retailers, Saudi Arabia ranks 9th in A.T. Kearney’s Retail Apparel Index, just after Russia. Saudi consumers already spend significant amounts abroad on brands and luxury goods. This indicates opportunities for local retailers in Saudi Arabia.

Published since 2001, the GRDI helps retailers prioritize their global development strategies by ranking the retail expansion attractiveness of emerging countries based on a set of 25 variables including economic and political risk, retail market attractiveness, retail saturation levels, and the difference between gross domestic product growth and retail growth. A detailed analysis and country-specific results for the 2009 GRDI is available at www.atkearney.com.

“With economic conditions in developed markets improving so slowly, emerging markets such as Saudi Arabia are becoming much more important sources of growth for global retailers,” said Ziegler. “Leading global retailers must develop a portfolio strategy that balances big and developed markets with small and developing markets to manage risks across the globe.”

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About the study

A.T. Kearney’s Global Retail Development Index ranks 30 emerging countries on the urgency for retailers to enter the country. The scores are based on 25 variables across four primary categories: economic and political risk; market attractiveness; market saturation; and time pressure (difference or addition between gross domestic product and modern retail area growth).

About A.T. Kearney

A.T. Kearney is one of the world’s largest management consulting firms. With a global presence that includes over 50 offices in 35 countries, A.T. Kearney provides consulting services in areas of business strategy, strategic operations management, transformation and organization, and technology strategy with a team of over 3,500 employees. A.T. Kearney covers all major manufacturing and service industries, including Government, Aerospace, Airlines and Transportation, Financial Institutions, Private Equity, Property Development, Building and Construction, IT, Communications and High-Tech, Automotive, Pharmaceuticals and Health Care, Process and Manufacturing Industry, Utilities and Energy, Sports, Retail and Consumer Goods. During its 80 year history it has provided management consulting services to most major corporations and governments around the world. From its fast growing UAE office in Dubai, A.T. Kearney actively contributes to the growth and the build-up of an industry and service economy in the region. For more information visit www.atkearney.com.