Saudi Arabia Retail Market Grow with a CAGR of 6.80% through 2030F

The Saudi Arabia Retail market is driven by rising disposable incomes, urbanization, digital transformation, evolving consumer preferences, and government initiatives like Vision 2030 promoting economic diversification.

According to TechSci Research report, “Saudi Arabia Retail Market – By Region, Competition, Forecast & Opportunities, 2030F”, the Saudi Arabia Retail market stood at USD 268.56 Million in 2024 and is anticipated to grow USD 398.45 Million by 2030 with a CAGR 6.80% during forecast period. The Saudi Arabia Retail market is driven by government initiatives under Saudi Arabia’s Vision 2030, aiming to diversify the economy and reduce dependence on oil revenues. The plan focuses on developing a vibrant retail sector by encouraging investments, modernizing infrastructure, and fostering innovation. Key programs promote the growth of e-commerce, enhance supply chain efficiency, and improve regulatory frameworks to attract both local and international retailers. Also, Vision 2030 supports the creation of entertainment and tourism projects that increase consumer spending and foot traffic in retail hubs. These initiatives collectively create a conducive environment for sustainable retail growth, boost job creation, and elevate the overall shopping experience, positioning Saudi Arabia as a competitive retail destination in the region.

The Saudi Arabia Retail market is primarily driven by ongoing improvements in infrastructure and logistics networks. Major investments in transportation systems, including railways, ports, and airports, have enhanced the efficiency and speed of goods movement across the country. The development of modern logistics hubs and free zones has streamlined supply chains, reducing delivery times and operational costs for retailers. These advancements support the rapid growth of e-commerce by enabling faster, more reliable distribution and last-mile delivery services. Improved infrastructure also facilitates better connectivity between urban and rural areas, expanding retail reach and accessibility. Overall, these enhancements create a more competitive retail environment, allowing businesses to respond swiftly to consumer demands and contribute to the Kingdom’s broader economic diversification and modernization goals.

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The Saudi Arabia Retail market is segmented into type, retail store type, and region.

Based on the retail store type, the online segment is the fastest growing in the Saudi Arabia Retail market, propelled by several key factors. The country boasts one of the highest internet penetration rates in the Middle East, with widespread access to smartphones, facilitating seamless online shopping experiences. Government initiatives under Vision 2030 aim to digitalize the economy, promoting e-commerce platforms and digital payment systems. The fintech sector has seen significant growth, enhancing secure online transactions and boosting consumer confidence. Also, the rise of social commerce, where platforms like Instagram and TikTok serve as retail channels, has further accelerated online shopping trends. These combined efforts have positioned Saudi Arabia's e-commerce sector as a dynamic and rapidly expanding component of the retail industry.

Based on the region, Eastern is the fastest-growing region in the Saudi Arabia Retail market, driven by several key factors. Strategically located along the Arabian Gulf, cities like Dammam and Khobar serve as vital commercial hubs, facilitating robust trade and commerce. The region's proximity to the oil industry has attracted a significant expatriate workforce, contributing to increased consumer spending and demand for diverse retail offerings. Also, the Eastern region benefits from improved infrastructure, including modern shopping centers and enhanced logistics networks, which support efficient supply chains and timely product availability. Government initiatives aimed at economic diversification and regional development further bolster the retail sector's growth in this area. Collectively, these factors position the Eastern region as a dynamic and rapidly expanding retail market within Saudi Arabia.

Major companies operating in the Saudi Arabia Retail market are:

• Lulu Retail
• Al Othaim Holding's
• Majid Al Futtaim Holding LLC
• Bindawood Holding
• Noon E Commerce Solutions One Person Company LLC
• Amazon
• Alibaba Group Holding Limited
• Jarir Bookstore
• Nibras Al Arabia LLC
• Gulf Marketing Group (GMG)

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“The Saudi Arabia Retail market is expected to grow in the future owing to the increased foreign direct investment (FDI). In 2024, the Kingdom attracted approximately $20.69 billion in FDI, with retail and wholesale trade sectors receiving substantial attention. This surge is attributed to the government's initiatives under Vision 2030, which have enhanced the investment climate by simplifying regulations and offering incentives such as 100% foreign ownership in various sectors, including retail. Consequently, international retailers are establishing a direct presence in the market, moving beyond traditional franchise models. For instance, brands like adidas have launched subsidiaries in Saudi Arabia, tailoring their offerings to local preferences and participating in events like Riyadh Fashion Week to engage with the Saudi consumer base. These developments underscore the Kingdom's strategic positioning as a burgeoning retail hub in the Middle East., said Mr. Karan Chechi, Research Director of TechSci Research, a research-based management consulting firm.

"Saudi Arabia Retail Market By Type (Food Retail, Non-Food Retail), By Retail Store Type (Supermarket/Hypermarket, Online, Baqala Stores, Departmental Stores, Exclusive Stores, Convenience Stores, Others), By Region, Competition, Forecast & Opportunities, 2020-2030F”, has evaluated the future growth potential of Saudi Arabia Retail market and provides statistics & information on market size, structure and future market growth. The report intends to provide cutting-edge market intelligence and help decision makers take sound investment decisions. Besides, the report also identifies and analyzes the emerging trends along with essential drivers, challenges, and opportunities in the Saudi Arabia Retail market.

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