Saudi retail sector to recover on govt stimulus, consumer spending

19th March, 2019 11:23:49 printer

RIYADH: Saudi Arabia’s retail sector is expected to rebound in 2019 from last year, when consumer spending was dented from the introduction of 5 per cent VAT and higher energy prices, according to a new report.

The Saudi government’s initiatives such as allowances to public sector employees and increases in subsidies and social spending will help boost the purchasing power of Saudi citizens, Dubai's Arqaam Capital said in a new report on Tuesday, report agencies.

“We expect wage growth and recovering consumer confidence to translate into growth in consumer spending and especially on discretionary goods and services,” it said.