Saudi Minister of Municipal, Rural Affairs and Housing, Majed Al-Hogail, said that the retail sector currently constitutes 23 percent of the non-oil GDP in the Kingdom and is expected to grow to more than SAR 460 billion ($122.6 billion) by the end of 2024.
Speaking during the 10th edition of the Retail Leaders Circle MENA Summit in Riyadh, Al-Hogail noted that the total number of active commercial licenses for the sector exceeded 400,000 licenses from 2019 until the end of 2023, as efforts to stimulate the sector resulted in the issuance of no less than 70,000 annual licenses, recording a steady growth of about 6 percent.
The minister emphasized that the Kingdom has worked to develop many legislations supporting the retail sector, with the aim to regulate its operation, sustainability and effectiveness, in addition to finding solutions, services and facilitations that encourage investors and help them overcome obstacles.
“We have made important steps towards developing the sector by enacting and introducing the necessary legislation, regulations and requirements for integration and partnership with the private sector... We have held many meetings and workshops with chambers of commerce in all regions,” with the aim of raising the standards of commercial and investment activities, updating licensing and oversight regulations and enhancing the principle of transparency in legislation and procedures,” Al-Hogail told the attendees.
He also pointed to continued efforts in cooperation with relevant authorities to build capabilities and develop skills according to the needs of the current labor market, as well as anticipating future requirements to empower the local workforce in the sector.
Al-Hogail stated that the retail sector contributes 23 percent to the non-oil GDP in the Kingdom, while the average occupancy rates of the sector in Riyadh and Jeddah reached 88 percent during 2023.
For his part, the General Supervisor of the Licensing and Compliance Agency at the Ministry of Municipal, Rural Affairs and Housing Affairs, Mohammad Al-Melhem, told Asharq Al-Awsat that as of the beginning of 2023, the ministry has worked to review all legislation related to business requirements, in cooperation with the private sector.
“Today, this qualitative change brought about by the Ministry, which will see the light at the beginning of the second quarter of 2024, will result in a major shift in terms of clarity of requirements and procedures,” he said.
