Peak Selling Season of Saudi Shemagh

 A seller displays dozens of shemaghs, as sales reach their peak at the end of Ramadan. (Asharq Al-Awsat)
A seller displays dozens of shemaghs, as sales reach their peak at the end of Ramadan. (Asharq Al-Awsat)
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Peak Selling Season of Saudi Shemagh

 A seller displays dozens of shemaghs, as sales reach their peak at the end of Ramadan. (Asharq Al-Awsat)
A seller displays dozens of shemaghs, as sales reach their peak at the end of Ramadan. (Asharq Al-Awsat)

Experts in the manufacturing and import of the Saudi shemagh revealed that this traditional dress has reached the highest annual sales season, recording sales estimated at about 900 million riyals annually.

They pointed to new consumer trends, especially among the younger generation, as a number of international brands have joined the race to acquire the biggest share of the market.

The shemagh is a traditional garment for men in the Arabian Gulf region and some Arab regions in Iraq, Jordan, Syria and Yemen, where it is considered part of the culture men’s clothing, whether at work or during social events and others.

In remarks to Asharq Al-Awsat, CEO of Al-Imtiaz Company Ltd., Fahd bin Abdulaziz Al-Ajlan, said that the volume of the shemagh market ranged between 700 and 900 million riyals annually.

He added that between 9 and 11 million shemaghs and ghutras were sold annually, stressing that the percentage of sales during Eid al-Fitr season and other holidays represented nearly 50 percent of the annual sales volume.

Regarding market and consumer trends, Al-Ajlan indicated that the majority of consumers of the shemagh and ghutra belonged to the young generation born between 1997 and 2012.

He noted that international brands, such as Pierre Cardin, S.T. Dupont, Cerruti 1881 and others, have joined the shemagh and ghutra market, contributing to raising the quality and specifications of the product.

For his part, Nasser Al-Hamid, manager of a shemagh shop in Riyadh, explained that the sales increase in the last ten days of Ramadan every year and reach their peak in the last two nights before Eid al-Fitr.

Hamid also noted that the market has witnessed, in the last ten years, a variety of new designs and brands, paving the way for a greater competition between companies in terms of quality and price, and in marketing campaigns.



Bank of America Forecasts Three US Rate Cuts this Year

A customer uses an ATM at a Bank of America branch in Boston, Massachusetts, US, October 11, 2017. REUTERS/Brian Snyder
A customer uses an ATM at a Bank of America branch in Boston, Massachusetts, US, October 11, 2017. REUTERS/Brian Snyder
TT

Bank of America Forecasts Three US Rate Cuts this Year

A customer uses an ATM at a Bank of America branch in Boston, Massachusetts, US, October 11, 2017. REUTERS/Brian Snyder
A customer uses an ATM at a Bank of America branch in Boston, Massachusetts, US, October 11, 2017. REUTERS/Brian Snyder

Bank of America, the most conservative among Wall Street's brokerages on the size of the Federal Reserve's expected interest rate cuts this year, has raised its forecast to match most of its peers after the recent nonfarm payrolls data.

BofA Global Research said on Sunday that it now expects the central bank to lower rates by 25 basis points (bps) in each of the three remaining policy meetings this year, compared with its previous forecast of two 25-bps cuts in September and December, according to Reuters.

The change was after data on Friday showed US employment rose less than expected in August, but a drop in the jobless rate to 4.2% suggested the labor market was not falling off the cliff to warrant a half-point rate cut this month.

BofA economists concurred, saying the hurdle for a 50-bps cut in September is high “because despite evidence of a cool labor market, layoffs remain low.”

Their latest forecast is the same as that of eight other brokerages, including Morgan Stanley and UBS Global Research, though it was not immediately clear if these brokerages would, or have already, altered their forecasts.

The jobs data had little effect on investors' bets on the size of a cut at the Fed's meeting next week. Interest rate futures signal a 70% chance of a 25 bps cut, nearly the same as last week.

Barclays and Goldman Sachs retained their call of three 25-bps cuts this year, saying the jobs data did not warrant a 50-bps cut.

Before the latest jobs data, UBS Global Wealth Management, JP Morgan, Wells Fargo, Citigroup and Wells Fargo Investment Institute had expected a 50 bps cut in September.