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RIYADH: Saudi consumers are facing steep price disparities for everyday personal care products, with retail pharmacies charging up to 180 percent more than wholesale outlets, according to a field survey conducted by Al-Eqtisadiah.

The investigation, which covered major pharmacy chains including Nahdi, Al-Dawaa, and Whites, as well as retail outlets such as Dar Al-Amirat and Enaya Stores, highlighted significant markups on popular items.

Cetaphil cream, for example, sold for SR42 ($11.20) at wholesale outlets, but fetched SR117 in pharmacies. Dettol soap and Koleston hair dye were similarly marked up, selling for 103 percent and 121 percent higher in retail settings, respectively.

The disparity, described by experts as irrational and unjustified, has drawn consumer complaints and prompted calls for regulatory intervention.

“Economic expert Mohammed Al-Abbas explained that differences of up to 150 percent exceed reasonable limits, noting that normal profit margins do not exceed 15 percent of the cost,” Al‑Eqtisadiah reported, adding that he urged the Competition Authority to study the market and regulate practices.

The Saudi Food and Drug Authority told Al‑Eqtisadiah it monitors pharmacies, including wholesale and private outlets, through direct inspections and joint campaigns with other government entities.

Professor Saad Al-Talhab, a dermatology consultant, said consumers struggle to make purchasing decisions amid these price gaps and called for closer monitoring of pricing mechanisms.

Abdulwahab Al-Qahtani, professor of economics at Al Yamamah University, said low consumer awareness enables some pharmacies to impose significantly higher prices.

The sharp domestic price disparities highlighted by Al-Eqtisadiah come amid broader regional trends showing significant price-led growth in the beauty sector.

According to NielsenIQ, the beauty industry recorded a 7.3 percent increase in value year on year, with the Africa–Middle East region posting a 27.1 percent surge. Analysts attribute much of this growth to inflationary pressures rather than a corresponding rise in product volume, indicating that higher unit prices are driving revenues across the region.

According to the General Authority for Statistics, ������Ƶ’s imports of beauty and personal care products reached SR48.8 billion over the past five years, with an annual average of SR9.7 billion. Imports in the first half of 2025 totaled SR5.4 billion, suggesting this year’s figures may exceed the five-year average.

France was the largest supplier during the period, exporting SR9.4 billion worth of products to the Kingdom, accounting for 19 percent of total imports.

The Kingdom’s dependence on diverse international sources has placed greater responsibility on storage facilities and distributors to ensure uninterrupted supply and compliance with transportation and storage standards.

Sector analysts indicate that a rise in commercial registrations points to growing investor interest and a widening distribution network across both major cities and peripheral regions, according to Al-Eqtisadiah.

As of September, the Ministry of Commerce reported approximately 6,700 commercial licenses for wholesale pharmaceutical sales and 6,300 licenses for cosmetic product storage, reflecting the expansion of the sector and its increasing reliance on organized distribution channels.

RIYADH: ������Ƶ’s Small and Medium Enterprises Financing Guarantee Program, known as Kafalah, extended 5,447 assurances, boosting small-business funding by 8 percent year on year in the third quarter to SR14 billion ($3.73 billion). 

The value of guarantees reached SR10.6 billion, up 4 percent from the same period in 2024, while 4,384 small and medium enterprises benefited from the program’s services, the Saudi Press Agency reported.  

This underscores the program’s growing role in supporting small businesses as the Kingdom pursues economic diversification under Vision 2030. 

Quoting Homam Hashem, CEO of the Kafalah program, SPA reported that this growth in financing “reflects the pivotal role of SMEs in supporting national economic growth, and their contribution to achieving the goals of the Kingdom’s Vision 2030, which aims to diversify sources of income and empower the business sector.”  

He described Kafalah as a pioneering model of cooperation between the public and private sectors to enhance access to finance and address business challenges. 

Since its inception, the program has approved more than 71,400 guarantees worth SR89.5 billion and supported around 26,500 SMEs, with total financing exceeding SR125.3 billion. 

Entertainment-focused SMEs have emerged as strong performers within the program, with a 98 percent year-on-year increase in financing during the second quarter of 2025, according to SPA.

Kafalah supported 32 establishments, issuing guarantees exceeding SR79 million. 

The number of beneficiaries in the entertainment segment rose 78 percent from a year earlier. By the end of the second quarter, 94 enterprises had received financing exceeding SR304 million, backed by guarantees totaling SR225 million. 

Established in 2006 as a non-profit government initiative, Kafalah helps SMEs secure financing to develop and expand their operations. It provides financial guarantees to banks and other lenders, enabling firms that face difficulties in accessing credit to obtain funding. 

The program operates in coordination with the SME Bank and the National Development Fund to foster a sustainable financing ecosystem that supports enterprise growth and economic diversification. 

Over the past five years, the program has contributed nearly SR27 billion to ������Ƶ’s gross domestic product, underscoring its role in expanding the Kingdom’s SME landscape.