Fair Competition: A Pillar for Consumers and Driver of Saudi Arabia's Economic Growth

Asharq Al-Awsat

4 days ago

Fair competition is emerging as a cornerstone of Saudi Arabia's economic transformation, serving not only as a market principle but as a vital engine for national growth and innovation. By fostering an environment of healthy rivalry, companies are compelled to improve product quality, lower prices, and enhance consumer experience, all of which benefit the Saudi consumer and economy alike.
This competitive landscape encourages domestic investment, attracts foreign capital, and stimulates research and development, thereby reinforcing economic sustainability. But experts emphasize that fair competition is only as effective as the policies and regulatory frameworks enforcing it.
Financial and economic advisor Dr. Hussein Al-Attas told Asharq Al-Awsat that fair competition acts as a key market regulator, limiting companies' ability to monopolize prices.
'Freedom to compete naturally pushes prices closer to real production costs,' he explained, 'reducing excessive profit margins and expanding consumer choice.'
Al-Attas stressed that quality is now central to market success. 'Consumers are increasingly discerning, comparing prices, quality, and service,' he said, adding that companies failing to meet evolving standards in production, packaging, or after-sales support quickly lose market share.
He described this environment as creating 'positive pressure' on firms to maintain high quality to retain customer loyalty, making excellence not just a goal, but a survival strategy.
Government policies, Al-Attas noted, can either foster or distort competition. While support for startups and tax incentives can spur fair competition, imbalanced subsidies may unfairly favor specific companies, undermining market fairness.
Incentives should be based on transparent criteria aligned with public interest, he stressed.
Regulatory bodies like the General Authority for Competition play a vital role, he said. They monitor monopolistic behavior, investigate complaints, regulate mergers, and promote business awareness around fair play.
For his part, Economist and King Faisal University academic Dr. Mohammed bin Duliem Al-Qahtany echoed this view, calling fair competition not only an economic tool but a 'social guarantee for equity' and a key driver of investor confidence.
He highlighted Saudi Arabia's strides in making its economy among the most competitive and sustainable regionally and globally. 'A competitive market forces rational pricing and deters exploitation,' he told Asharq Al-Awsat.
Al-Qahtany cited the rise of Saudi e-commerce as a success story, noting how competition has led to innovations like facial recognition payment and AI-powered consumer analytics, improving both service and efficiency.
He pointed to sectors such as food and beverage, where consumer awareness and competition have elevated standards in hygiene and packaging.
Government initiatives like the Saudi Made program, he said, exemplify balanced support that boosts national industry competitiveness and promotes small business growth.
A robust and transparent competition framework is essential for maintaining a fair market, protecting consumers, and solidifying investor trust in Saudi Arabia's economic future, he stated.