3 Saudi Sectors Ride Against the Wave of Declining Economic Activities

Coronavirus crisis raises demand for some vital consumer sectors.

Three economic sectors maintained their levels of performance in the Saudi economy. They are unaffected by the complications that arose due to the coronavirus across the Kingdom.

Those sectors, according to experts, are the food, communications and health sectors.

Unlike many sectors that witnessed a decline in sales; the food sector remains unaffected with a whopping SAR221bn ($58.9bn) in sales according to recent estimates.

Saleh al-Mubarak, a member of the commercial committee in the Chamber of Commerce and Industry in Riyadh; confirmed that the three sectors are performing steadily to meet local consumer needs during the coronavirus crisis.

Al-Mubarak pointed out that the imposed curfew has drastically changed consumer habits, shifting them to online purchases and e-deliveries. Therefore, we can’t compare the food sector cannot to the other sectors that recorded tangible declines due to the effects of the coronavirus pandemic.

Stabilizing the market

Saudi Arabia has succeeded in stabilizing the market despite the COVID-19 outbreak, which has ravaged many global markets. Local supply chains built up strategic stock of consumer goods in the context of preparedness for the advent of Ramadan.

More so, the Saudi Ministry of Commerce has launched an initiative to develop and raise the quality of stores in various sub-sectors.

The initiative works to define specifications and standards that guarantee the quality of products and services offered to the consumer.

These stores developed by providing opportunities for the foreign investor. This is to enter the retail sector by granting commercial franchises in a manner that guarantees creating more opportunities for competition.

Economic expert Loay al-Tayyar projected that the Saudi food sector will grow in 2021. It also added that food retail is very important under current circumstances.

Tayyar pointed out that the gradual return of shopping contributed significantly to raising the volume of sales in the food sector. It will reach its peak in the next few days. This is with the increase in demand for many food products and consumables as the Eid al-Fitr holiday approaches.