Amalgamation of Small Firms Given Boost to the Retail Sector in Saudi Arabia

Abstract

The present book chapter brings systematically focus the prospects of organized retailing in Saudi Arabian market, its growth drivers and comprehensive outcome analysis. The basic objective of the present chapter is to find out and develop a co-relation taking place between organized retailing in KSA and growth drivers thereof. The GCC retail industry is poised for a healthy growth in Middle East and KSA. Therefore, it can be said that the amalgamation (M&A) is a great way to grow Saudi Arabian business without having to wait long years. It aims at observing growth of Saudi Arabian retail market like Carrefour, Panda Bin Dawood Al Marai, Sadafco, Aujan Beverages ltd and Savola etc. However, there are many obstacles to the growth and implementation in the retail market. Many factors affect the retail sector including Saudi Arabia, UAE and over all GCC. Rapid transformation of new industries into a larger industries and new ideas, innovations as well as strategies are playing a pivotal role in bring a shift new global business model as a merger & acquisition. As a result of amalgamation of small firms into larger firms is taking place with rapid growth e.g., Coca Cola took over the Aujan Soft drinks; Al-Marai to Riyadh Laben; similarly Western bakeries, International Baking service, Hadco have passed through the same stages of amalgamation. The Savola group of companies took over Geant hypermarket and Giant hypermarket in Riyadh. The present book chapter emphasized and point out at new emerging trends and retail space after the inflow of organized retailing in KSA. make a dynamic impact on organized retailing in KSA. Furthermore, it is observed that M&E or amalgamation can be seen very clearly in Saudi Arabia retail market.