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RIYADH: Retailers in Saudi Arabia and the United Arab Emirates have recorded higher turnovers in recent months due to rising inflation and increased consumer spending on basic necessities, according to a report Global Business Outlook Survey.

During the third quarter of 2022, sales of fast-moving consumer goods rose 6.5% year-on-year in Saudi Arabia and 8.8% in the United Arab Emirates, according to the latest research from the global services company. information NielsenIQ.

“Rising prices are fueling fast-moving consumer goods revenue growth in the UAE and Saudi Arabia,” according to NielsenIQ.

The data used in the study came from hypermarkets, supermarkets, grocery stores, beverage caterers, pharmacies and perfumeries.

In turn, the cost of essential goods has doubled and retailers have resisted offering in-store promotions.

Although promotions have diminished in intensity in the Emirati and Saudi markets, grocery stores have raised prices in just 86 food categories, NielsenIQ reported.

Between July and September 2022, frozen food prices in Saudi Arabia increased by 15%, while the price increased by 19% in the United Arab Emirates. Saudi Arabia and the United Arab Emirates also recorded an increase in demand for dairy products of 18 and 14%, respectively.

However, compared to reported sales volumes in the first quarter of 2022, the UAE market saw a 1.5% decline, while the Saudi market saw a 3.6% decline in sales volume. .

The research found that the value of consumer purchases in retail establishments has increased due to price increases, but fewer purchases are made due to this increase.

“Price increases are driving significant face value growth in both countries,” according to Andrey Dvoychenkov, managing director of the Arabian Peninsula and Pakistan region of NielsenIQ.

However, he continued, “They’re always willing to pay more for goods that offer more features and benefits.”

In September this year, inflation in Saudi Arabia increased by 3.1%, mainly due to an increase in the cost of food, housing and utilities, while consumer inflation in the UAE rose 4.6% year-on-year in April. 2022.

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