Saudi Arabia’s Restaurant Sector Growth Attracts Global Investment

Restaurants in the Riyadh City Boulevard. (Asharq Al-Awsat)
Restaurants in the Riyadh City Boulevard. (Asharq Al-Awsat)
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Saudi Arabia’s Restaurant Sector Growth Attracts Global Investment

Restaurants in the Riyadh City Boulevard. (Asharq Al-Awsat)
Restaurants in the Riyadh City Boulevard. (Asharq Al-Awsat)

The strength of consumer demand in Saudi Arabia’s food and beverage sector makes it an appealing market for international brands. The development of regulations and legislation has created an investment framework that facilitates foreign companies’ expansion and achievement of their goals in the Kingdom.

Point-of-sale operations using “Mada” cards in Saudi Arabia have shown a 13.6 percent annual growth in the restaurant and café sector, increasing from SAR 78 billion ($20.8 billion) in 2022, to SAR 89 billion (%23.7 billion) over the past year. The growth indicates a promising future for the market, which is experiencing strong consumer demand.

Amro Bagedo, the founder and CEO of Kraiv, said: "The continuous and remarkable growth in the food, beverage, and hospitality sector in the Kingdom is driven by the younger generation. Their desire to experience renowned international brands without traveling abroad has created opportunities for stakeholders from the America, Europe, and Asia to invest in Saudi Arabia. This has led to gradual and exponential growth in local business opportunities."

“The Kingdom’s hosting of the FIFA World Cup in 2034 has created an urgent need for its host cities -Riyadh, Jeddah, Al-Khobar, Abha, and NEOM - to expand their dining and hotel options to accommodate visitors attending the tournament,” Bagedo told Asharq Al-Awsat.

He added that tourism will be a major focus for the Kingdom in the coming years, and hospitality will play a crucial role in strengthening the sector.

The restaurant market in the Kingdom is expected to double annually, reaching approximately SAR 168 billion ($44.8 billion) by 2030.

This growth is driven by strong consumer demand and the increasing presence of renowned brands investing in the local market.

Recent rapid social and cultural changes in restaurant services, fueled by a booming economy, indicate that Saudi Arabia is on track to become a global hub for entertainment and tourism. This growth is supported by restaurants and outlets that cater to the high demand from both local and international visitors.



Türkiye Cenbank Cuts Rates by 250 Points to 45% as Expected

14 January 2025, Türkiye, Istanbul: A man seen rowing his boat along the Moda beach. Photo: Onur Dogman/SOPA Images via ZUMA Press Wire/dpa
14 January 2025, Türkiye, Istanbul: A man seen rowing his boat along the Moda beach. Photo: Onur Dogman/SOPA Images via ZUMA Press Wire/dpa
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Türkiye Cenbank Cuts Rates by 250 Points to 45% as Expected

14 January 2025, Türkiye, Istanbul: A man seen rowing his boat along the Moda beach. Photo: Onur Dogman/SOPA Images via ZUMA Press Wire/dpa
14 January 2025, Türkiye, Istanbul: A man seen rowing his boat along the Moda beach. Photo: Onur Dogman/SOPA Images via ZUMA Press Wire/dpa

Türkiye's central bank cut its key interest rate by 250 basis points to 45% as expected on Thursday, carrying on an easing cycle it launched last month alongside a decline in annual inflation that is expected to continue.

The central bank indicated it would continue to ease policy in the months ahead, noting that it anticipated a rise in trend inflation in January, when economists expect a higher minimum wage to lift the monthly price readings, Reuters reported.
In a slight change to its guidance, the bank said it will maintain a tight stance "until price stability is achieved via a sustained decline in inflation."
Last month, it said it would be maintained until "a significant and sustained decline in the underlying trend of monthly inflation is observed and inflation expectations converge to the projected forecast range."
In a Reuters poll, all 13 respondents forecast a cut to 45% from 47.5% in the one-week repo rate. They expect it to hit 30% by year end, according to the poll median.
In December, the central bank cut rates for the first time after 18-month tightening effort that reversed years of unorthodox economic policies and easy money championed by President Recep Tayyip Erdogan, who has since supported the steps.
To tackle inflation that has soared for years, the bank had raised its policy rate by 4,150 basis points in total since mid-2023 and kept it at 50% for eight months before beginning easing.
Annual inflation dipped to 44.38% last month in what the central bank believes is a sustained fall toward a 5% target over a few more years. It topped 75% in May last year.
"While inflation expectations and pricing behavior tend to improve, they continue to pose risks to the disinflation process," the bank's policy committee said after its rate decision.
A 30% administered rise in the minimum wage for 2025 was lower than workers had requested, though it is expected to boost monthly inflation readings this month and next, economists say.
The expected January inflation rise "is mainly driven by services items with time-dependent pricing and backward indexation," the bank said.
The central bank has eight monetary policy meetings set for this year, down from 12 last year.