Britons Reduce Spending to Lowest Level since 2012

Shoppers in the UK/Reuters
Shoppers in the UK/Reuters
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Britons Reduce Spending to Lowest Level since 2012

Shoppers in the UK/Reuters
Shoppers in the UK/Reuters

British shoppers tightened their spending over Christmas, leading to the first year-on-year fall in spending since 2012, and leading businesses aim to do the same over 2018, two major surveys showed.

Evidence of a consumer slowdown in Britain has mounted since official data showed the weakest household spending growth in five years earlier in 2017 against a backdrop of high inflation and worries about Brexit that weigh on business investment.

Visa, whose debit and credit cards are used for a third of payments in Britain, said British consumer spending fell by 0.3 percent last year, after taking into account the effect of higher inflation, the first fall since 2012.

Spending in December alone was 1.0 percent lower than in 2016, also the first fall in five years, and reflected a squeeze on household incomes from the highest inflation in nearly six years, Visa said. Economists polled by Reuters expect growth this year will slow slightly to 1.3 percent, well below its longer-run average of just over 2 percent. Brexit remained at the top of the list of worries of more than 100 of Britain’s largest companies surveyed by accountants Deloitte, and the companies’ concerns intensified slightly.

The businesses also reported the biggest focus on cost control in eight years, despite a robust global economy. Deloitte’s chief economist, Ian Stewart, said: “In a world of accelerating growth and buoyant equity markets, domestic risks remain large. Reining in costs can help chief financial officers mitigate these.”

Risk appetite, a proxy for big companies’ willingness to invest, was a shade weaker than three months ago and well below pre-referendum levels. Deloitte surveyed 112 chief financial officers between Dec. 3 and Dec. 15. The CFOs’ companies represent about 20 percent of Britain’s publicly traded corporate sector by value.

In a related context, and among reasons that could indirectly affect Britons’ economic conditions, more than 500 companies including Ladbrokes, Easyjet and Virgin Money have revealed data highlighting gender pay gaps of more than 15 percent in favor of men for mean hourly pay. The gender pay gap refers to the difference between men and women in pay, regardless of their roles or jobs. This differs from pay parity, which means that companies must ensure that women and men with similar jobs receive the same remuneration for the work they do. In 2016, the gender wage gap was 9.4 percent for full-time workers and 18.1 percent for all workers.

Nearly half of UK workers will be affected by rules for reporting the difference in wages between men and women, which also reveal the difference in bonuses, and the results will be published in the government data list.

Companies with 250 or more workers must publish their figures by April and so far 527 firms have done so. According to BBC, Women's hourly pay rates are 52 percent lower than men's at Easyjet. On average, women earn 15 percent less per hour at Ladbrokes and 33 percent less at Virgin Money. All three firms say men and women are paid equally when in the same role.

At Easyjet, for example, 6 percent of its UK pilots are women, a role which pays £92,400 a year on average, whereas 69 percent of lower-paid cabin crew are women, with an average annual salary of £24,800, BBC reported. The carrier said it had set a target that one in five of new entrant pilots should be female by 2020.

The Ladbrokes Coral group put its gender pay gap largely down to "weak representation at our senior levels" and Virgin Money said it was "confident" men and women were paid equally for the same jobs.



Five Benefits of the New Foreign Property Ownership Law in Saudi Arabia

A general view of Riyadh, Saudi Arabia. (Asharq Al-Awsat)
A general view of Riyadh, Saudi Arabia. (Asharq Al-Awsat)
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Five Benefits of the New Foreign Property Ownership Law in Saudi Arabia

A general view of Riyadh, Saudi Arabia. (Asharq Al-Awsat)
A general view of Riyadh, Saudi Arabia. (Asharq Al-Awsat)

A newly updated property ownership law approved by Saudi Arabia’s cabinet earlier this month is expected to deliver five major benefits to the Kingdom’s real estate sector, including attracting foreign capital and enhancing transparency, according to industry experts.

Set to take effect in January 2026, the law enables non-Saudis to own property under a regulated framework aimed at modernizing the sector and supporting the country's broader economic transformation goals under Vision 2030.

Real estate experts said the law will draw foreign investment through sovereign wealth funds and international developers, transfer global expertise in property management and development, expand the supply of residential and commercial units, unlock new financing channels for large-scale developments, and generate new job opportunities for Saudi citizens.

“This is a pivotal step toward creating a more transparent, professional, and investor-friendly real estate market,” said Khaled Al-Mobid, CEO of property firm Manassat.

“The new system regulates relationships between all market players, speeds up processes, protects rights, and raises the overall quality and diversity of real estate projects,” he told Asharq Al-Awsat.

He said the streamlined regulations are expected to make the Saudi property market more appealing to both local and international investors, particularly with improved governance and legal clarity. The law is also anticipated to support price stability by reducing speculation and ensuring more equitable property valuations.

With a more welcoming investment climate, Al-Mobid expects a wave of international developers to enter the market, especially in major cities and emerging economic zones.

“This framework reduces operational risks and facilitates licensing for major projects,” he said.

Ahmed Al-Faqih, a real estate consultant and appraiser, told Asharq Al-Awsat the reform marks a shift in Saudi Arabia’s investment landscape, offering promising returns to global funds and real estate entities.

He highlighted the law’s potential to attract capital from around the world while transferring expertise in property development, facility management, and project execution to the local market. “It will enrich the supply across all real estate segments, from residential to industrial and tourism-related projects,” Al-Faqih said.

One of the most notable features, he added, is the introduction of internationally recognized financial mechanisms such as profit-sharing structures to fund large-scale developments. These changes are also expected to create thousands of new jobs in the Kingdom’s growing real estate sector.

Al-Faqih pointed to the law’s removal of the residency requirement for foreign ownership as a key draw. “It adds much-needed flexibility and enhances the appeal of Saudi Arabia’s real estate market,” he said, predicting it will boost the sector’s contribution to non-oil GDP and ensure long-term sustainability.

According to the Real Estate General Authority (REGA), the new law will come into force 180 days after its publication in the official gazette. The executive regulations outlining implementation procedures and conditions will be issued within the same period.

Ownership will be permitted in specific areas of Riyadh and Jeddah under a structured geographic framework designed to protect market balance. However, property ownership in Makkah and Madinah will be restricted to Muslims under special conditions or regulated arrangements.

The system permits full ownership, as well as other real rights, such as usufruct and easements, provided the property is recorded in the national real estate registry and all ownership data is fully disclosed as stipulated in the executive regulations.

The Kingdom’s real estate sector has witnessed robust growth in recent years, contributing about 14% to GDP by the end of 2024, according to REGA CEO, Abdullah Al-Hammad.

The updated law, experts say, is expected to further strengthen that trajectory by fostering a more competitive, transparent, and globally integrated market.