Saudi Arabia

The Kingdom’s insurance industry looks set to enjoy solid growth over the coming few years thanks to an increased flow of state investments and rising demand for health and property coverage. Greater awareness among Saudis of the benefits of both life and non-life insurance policies should also boost policy take-up.

The retail sector appears set for an extended period of solid growth, thanks to Saudi Arabia’s expanding economy and higher domestic spending power. The industry, however, may have to act quickly to redress a few challenges, such as staffing shortages and the need to broaden the appeal of some of the Kingdom’s large shopping complexes.

Driven in part by state spending on infrastructure, housing and social development projects, Saudi Arabia’s economy is set for a year of solid growth. Longer-term predictions, however, are factoring in the uncertain state of the global economy. According to a report issued in mid-January by Riyadh-based Jadwa Investments, Saudi Arabia’s GDP will rise in 2012, with growth forecast to be around 3%.

Saudi Arabia’s construction industry has been forecast to be one of the Kingdom’s best performing sectors in 2012, with an increasing flow of state contracts coming its way. However, bottlenecks in the materials supply chain and high demand for labour and resources could push up prices.

As 2012 gets underway, Saudi Arabia can look back on 2011 as a year of solid growth, as well as anticipate a further 12 months of expansion and development, building on an already impressive economic platform as the state seeks to guarantee future growth through investments in infrastructure and human resources.

Saudi Arabia’s telecommunications sector is to get a major shake up this year, with up to three new operators entering the mobile phone segment, though the route they will be taking will be very different from that followed by the three existing service providers.