Amsterdam-based supermarket group Spar International has entered the Saudi Arabian retail market in partnership with Saudi conglomerate the Al Sadhan Group.

Spar aims to open 40 stores in Saudi Arabia by 2020, kicking off with three it has just launched in Riyadh. Plans are in place to open a further five stores this year.

While the first outlets aim at the mid to premium sector of the retail market, Spar eventually plans stores for all economic sectors.

“With a growing young population, rising GDP and increased consumer purchasing power, the retail market in Saudi Arabia has been growing steadily,” says Spar International MD Tobias Wasmuht.

A family business established in 1952, Al Sadhan Group has a range of interests including real estate, building management, food retail and brand development. Its retail arm, Al Sadhan Stores, has 1500 employees and was the first supermarket chain to obtain a business licence in Riyadh.

Spar International’s partnership with Al Sadhan started in 2016, with the soft launch of the first Spar store last year. Spar has supported Al Sadhan with logistics development, supply-chain creation and store design.

The partnership with Al Sadhan builds on Spar’s presence in the region, notably in the United Arab Emirates, Oman and Qatar.