Saudi Arabia is the largest market in the Middle East. In 2015, the Saudi Arabian market scope came to 2.1 million units, showing 12.6% year-on-year growth, after the slump in 2013 and rebound in 2014.
Saudi Arabia has the largest production capacity and is the largest exporter of oil in the world. Due to the impact of dropping crude oil prices, local government started to enact new tax policies, leading to rising commodity prices and pressure on consumers. However, replacement needs for air conditioners have increased for three years. The Saudi Arabian market continues to have momentum for consecutive growth.
The country faces extreme climate conditions throughout the year, with temperatures ranging between 39oC and 50oC. This hot climate is fueling demand for air conditioners in the country. Moreover, growth in the hospitality and residential sectors is augmenting demand for air conditioners in Saudi Arabia.
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