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Saudi Arabia Ranks 3rd in Global Retail Development Index

The retail sector represents about 12% of the Kingdom's GDP, according to Kearney (Reuters)
The retail sector represents about 12% of the Kingdom's GDP, according to Kearney (Reuters)
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Saudi Arabia Ranks 3rd in Global Retail Development Index

The retail sector represents about 12% of the Kingdom's GDP, according to Kearney (Reuters)
The retail sector represents about 12% of the Kingdom's GDP, according to Kearney (Reuters)

Saudi Arabia jumped nine places in the Global Retail Development Index, ranking third globally and first in the Arab world.

Kearney International Consulting issued the Global Retail Development Index by the end of 2023.

It is prepared based on a survey conducted every two years to evaluate promising retail markets and measure progress in developing trade globally, taking into account economic growth, consumer wealth, and the regulatory framework.

Based on a report issued by Kearney and viewed by Asharq Al-Awsat, the retail sector represented about 12% of Riyadh's GDP.

With more than 5 million households, Saudi Arabia has the largest consumer market among the Gulf Cooperation Council (GCC) nations.

Saudi Arabia's economy has been consciously evolving away from oil dependence, which accounts for about 40% of the GDP.

Kearney partner Mohammed Dhedhi expected Saudi Arabia to continue its excellent performance in the index for 2024, influenced by the continued growth in its non-oil sector and the rise in disposable income.

Dhedhi explained to Asharq Al-Awsat on the sidelines of the 10th edition of the Retail Leaders Circle MENA Summit in Riyadh that the non-oil domestic product in Saudi Arabia will continue to grow at a faster pace than the gross domestic product, expecting it to grow in the range of 0.3-0.5% points in 2024.

He further noted that several factors enhance the retail sector's contribution to the Saudi economy, noting that Saudization, government reforms, and increasing digitization in the retail ecosystem will accelerate growth.

Saudi Minister of Municipal, Rural Affairs, and Housing Majed al-Hogail said that the retail sector currently constitutes 23% of the non-oil GDP in the Kingdom and is expected to grow to more than $122.6 billion by the end of 2024.

Speaking during the Summit, 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 industry resulted in the issuance of no less than 70,000 annual licenses, recording a steady growth of about 6%.

According to the report, Kearney expects the non-oil sector growth to remain robust thanks to steady, ongoing investment activity in Vision 2030-related projects, local industrial and construction sector expansion, and the government's resilient commitment to progress with Vision 2030 reforms.

Saudi Arabia has made significant regulatory strides to promote diversification and private sector growth. New laws promote entrepreneurship, protect investors' rights, and reduce business costs in the Kingdom.

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Japan Says No Plan for Big Concessions in Talks on US Tariffs 

Japanese Prime Minister Ishiba Shigeru speaks at a joint press briefing after his meeting with NATO Secretary General Mark Rutte (not pictured) at the Prime Minister's Office in Tokyo, Japan, April 9, 2025. (Reuters)
Japanese Prime Minister Ishiba Shigeru speaks at a joint press briefing after his meeting with NATO Secretary General Mark Rutte (not pictured) at the Prime Minister's Office in Tokyo, Japan, April 9, 2025. (Reuters)
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Japan Says No Plan for Big Concessions in Talks on US Tariffs 

Japanese Prime Minister Ishiba Shigeru speaks at a joint press briefing after his meeting with NATO Secretary General Mark Rutte (not pictured) at the Prime Minister's Office in Tokyo, Japan, April 9, 2025. (Reuters)
Japanese Prime Minister Ishiba Shigeru speaks at a joint press briefing after his meeting with NATO Secretary General Mark Rutte (not pictured) at the Prime Minister's Office in Tokyo, Japan, April 9, 2025. (Reuters)

Japanese Prime Minister Shigeru Ishiba said on Monday his country does not plan to make big concessions and won't rush to reach a deal in upcoming tariff negotiations with US President Donald Trump's administration.

Japan, a long-time US ally, has been hit with 24% levies on its exports to the United States though these tariffs have, like most of Trump's sweeping "reciprocal" tariffs, been paused for 90 days.

But a 10% universal rate remains in place as does a 25% duty for cars, which is set to be particularly painful. The US is Japan's biggest export destination and automobile shipments account for roughly 28% of its exports there.

The two countries will begin trade talks on Thursday in Washington that are expected to cover tariffs, non-tariff barriers and exchange rates.

"I'm not of the view that we should make big concessions for the sake of wrapping up negotiations quickly," Ishiba said in parliament, though he ruled out slapping Japanese tariffs on US imports as a countermeasure.

"In negotiating with the United States, we need to understand what's behind Trump's argument both in terms of the logic and the emotional elements behind his views," Ishiba said, noting that US tariffs have the potential to disrupt the global economic order.

Bank of Japan Governor Kazuo Ueda warned of forthcoming pain.

"US tariffs will likely put downward pressure on the global and Japanese economies through various channels," Ueda told the same parliament session.

In addition to its large trade surplus with the US, Trump has also accused Japan of intentionally maintaining a weak yen - leading to expectations that Tokyo could come under pressure to strengthen its currency - even though a broad dollar sell-off has pushed up the yen of late.

The slow pace at which the Bank of Japan is raising borrowing costs from ultra-low levels could also come under fire in the talks, sources have previously said.

Economy Minister Ryosei Akazawa, who will lead Japan's delegation, said any discussion on currency rates will be held between Japanese Finance Minister Katsunobu Kato and US Treasury Secretary Scott Bessent.

"Both countries share the view that excessive market volatility would have adverse effects on the economy," Kato said.

Any discussion on the yen may spill over to monetary policy and complicate the BOJ's decision on how soon, and by how much, it should raise still-low interest rates.

Akira Otani, a former top central bank economist who is currently managing director at Goldman Sachs Japan, said the BOJ could consider halting interest rate hikes if the yen were to approach 130 to the dollar.

Conversely, a yen slide below 160 could bring forward or accelerate future rate hikes, he said.

The dollar fell 0.62% to 142.62 yen on Monday.

Japan has historically sought to prevent its currency from rising too much, as a strong yen hurts its export-reliant economy. But a weak yen has become the bigger headache in recent years as it has boosted import costs and hurt consumer spending.

Ruling and opposition party lawmakers have escalated calls for the government to cut tax or offer cash payouts to cushion the economic blow from rising living costs and Trump's tariffs.

Ishiba said the government is not thinking of issuing a supplementary budget now, but stood ready to act in a timely fashion to cushion any economic blow.