MAS Innovation Newsletter July | Page 14

sider The Economic Rationale Real GDP is expected to grow by 4.5% in 2014, up from 3.8% in 2013. HAVE A THINK ABOUT ? Unemployment was officially put at 5.1% in 2013 and it is expected to fall to 4.8% in 2014 Saudi Arabia has outperformed most of the major economies in the G-20 in recent years Saudi Arabia continues its efforts to diversify the economy. The centrepiece of the new programme is an “economic city” to be built at the cost of US$26.7 billion – the largest single investment ever made in the country Challenges include high levels of unemployment and a fast growing population COUNTRY PULSE The Business Case SAUDI ARABIA COULD SAUDI ARABIA BE THE ENTRY POINT INTO THE MIDDLE EASTERN MARKET ? Ranked 26th in the World Bank’s Ease of Doing Business 2014 Report Low rates of tax of 14.5% of profits IN 2030 SAUDI ARABIA WILL BE THE HOME TO largest country in the world of the worl 42 0.5 ND Ranked 20th in the Global Competitiveness Index Abundant energy resources, robust economic growth and high levels of government support regarding investment projects Lack of Transparency and Accountability High youth unemployment and strains on infrastructure arising The Power of the Consumer Inadequate Local Healthcare Facilities Turning Saudi Patients Into "global Health Consumers" “Luxury consumption represents middle-class aspirations” IS THERE A HIGH END RETAIL OPPORTUNITY TO BE EXPLORED ? Saudi Arabia in 2030 The Future Demographic CONSUMER BUZZ 51% of Saudi consumers said they research products online but visit brick-and-mortar shops to buy them Emotional Spending Behind Saudi Consumers Purchases of Luxury Brands and Big-ticket Items High Technology Set To Transform the Way Saudis Shop COULD MAS PARTNER WITH A GLOBAL BRAND IN ENTERING THE MARKET ? • Population to be 38.5Mn by 2030 • 86 % of the population will reside in urban areas by 2030 Germany, among