KARACHI: Pakistan’s leading chain stores have agreed to tap Saudi Arabia’s huge consumer market by taking a foothold in the kingdom and provide greater visibility to Pakistani products, officials working on the plan informed Arab News earlier this week.
Despite being a Muslim country that produces halal food items, Pakistani brands usually remain missing at grocery stores due to the absence of Pakistani retail chains in the kingdom. Officials believe these outlets can also promote other products manufactured in the South Asian country.
“It is unfortunate that Pakistani exporters have neglected this huge market for so long, focusing more on the United States and European Union for trade and export,” Azhar Ali Dahar, Minister Trade and Investment at Pakistan’s embassy in Riyadh, said on Thursday.
Saudi Arabia offers an $800 billion consumer market to aspiring businesses. The kingdom has the largest economy in the Middle East which puts it among the top 20 economies of the world. The per capita income of Saudi Arabia is more than $57,000, according to the Pakistan trade mission in Riyadh.
Officials have held several meetings with major chain stores in Pakistan, asking them to visit Saudi Arabia and explore its huge market potential.
Representatives of Hub Leather, Naheed Supermarket, Swera Departmental Stores, Imtiaz Super Market, Chase-Up, and Al-Fatah have already held meetings with relevant officials and agreed to visit the kingdom to explore new opportunities.
“After discussions with the commercial councilor in Saudi Arabia we have concluded that this is a good opportunity and we must try to avail it. However, we are waiting for the normalization of travel operations,” Rana Tariq Mehboob, Chairman of the Chain Store Association of Pakistan, told Arab News on Saturday.
“Our local super store owners have agreed to explore opportunities in Saudi Arabia, though progress has been delayed due to the virus-related travel restrictions,” he added.
Pakistan’s annual exports to Saudi Arabia have not gone beyond $500 million for the last several years, though India and Egypt, two major suppliers of goods and services to the kingdom, earn major revenues of $6 billion and $2 billion, respectively, according to the trade mission.
“There are 8 major chain stores owned by Indians such as Lulu, Madina, Nesto, CenterPoint and Max etc. Pakistani goods are not promoted by these stores since their owners do all their procurements from India,” Dahar said.
“Pakistani rice, spices, meat and fruits are available at small shops where a majority of Saudis rarely go for shopping,” he said, adding that Pakistani chain stores must take this opportunity through individual investments or joint ventures.