Forecast Period
|
2026-2030
|
Market Size (2024)
|
USD 268.56
Million
|
CAGR (2025-2030)
|
6.80%
|
Fastest Growing Segment
|
Online
|
Largest Market
|
Western
|
Market Size (2030)
|
USD 398.45 Million
|
Market Overview
The Saudi
Arabia Retail market was valued at USD 268.56 Million in 2024 and is expected to grow to USD 398.45 Million by 2030 with
a CAGR of 6.80%. The Saudi Arabia Retail market is
experiencing robust growth, driven by several key factors. Rising disposable
incomes and a young, tech-savvy population are fueling increased consumer
spending across various retail segments. Rapid urbanization and the expansion
of modern infrastructure, including shopping malls and e-commerce platforms,
are enhancing retail accessibility and convenience. Also, the government’s
Vision 2030 initiative is playing a pivotal role by encouraging economic
diversification and attracting foreign investment into the retail sector. The
shift toward digitalization, with a surge in online shopping and mobile
commerce, is also transforming the retail landscape. Evolving consumer
preferences for global brands, healthier lifestyles, and premium products
further stimulate market development. Together, these drivers are reshaping
Saudi Arabia's retail sector into a dynamic and competitive environment.
Key Market Drivers
Rising
Tourism Sector Across the Region
The rising tourism sector across the
region is playing a pivotal role in driving the growth of Saudi Arabia's retail
market. As a part of this, according to a recent study, as of 2022, Saudi
Arabia welcomed approximately 18 million international tourists, marking a
substantial rise compared to the previous year. As the Kingdom continues to
attract a growing number of international and domestic tourists, retail
spending has seen a significant surge. Tourists contribute to increased demand
for luxury goods, fashion, souvenirs, and electronics, particularly in major urban
centers and tourist destinations. Large-scale projects such as entertainment
zones, heritage sites, and beachfront resorts are drawing visitors, thereby
boosting footfall in retail outlets. Events, festivals, and seasons like Riyadh
Season further elevate retail activity by attracting high volumes of shoppers.
Also, infrastructure development and improved connectivity support the influx
of tourists, enhancing access to retail zones. The government’s focus on
tourism as part of Vision 2030 ensures ongoing investment in the sector,
creating a ripple effect that stimulates retail sales and positions Saudi
Arabia as a leading retail and tourism destination.
Surging
Middle-Class Population
The expansion of Saudi Arabia's middle class is a
significant catalyst for the country's retail market growth. As a part of
this, according to a recent study, as of 2024, Saudi Arabia led the Middle East
with the largest proportion of middle-class and higher-income consumers, where
this segment accounted for 100 percent of the consumer base. As more
citizens attain higher education and stable employment, their disposable
incomes increase, leading to elevated consumer spending. This demographic shift
has heightened demand for a diverse array of products, from everyday essentials
to premium goods. Retailers are adapting by offering value-for-money options
and expanding product lines to cater to the evolving preferences of this
burgeoning consumer base. The middle class's growing appetite for quality and
variety is also driving the proliferation of modern retail formats, including
shopping malls and e-commerce platforms. Also, their digital savviness is
accelerating the adoption of online shopping, prompting retailers to enhance
their digital presence. Government initiatives under Vision 2030, aimed at
economic diversification and enhancing living standards, further support this
trend by fostering an environment conducive to retail sector growth.
Collectively, these factors underscore the pivotal role of the surging
middle-class population in shaping Saudi Arabia's dynamic retail landscape.
Expansion
of Retail Sector
The expansion of Saudi Arabia's retail sector is
fueled by a confluence of strategic initiatives and evolving consumer dynamics.
As a part of this, as of April 2025, Chalhoub Group has launched an
extensive portfolio of prestigious brands at Solitaire, creating a retail space
that blends heritage, innovation, and exclusivity. The grand opening of joint
venture brands such as Loewe, Celine, Fendi, Dior, Dior Beauty, Louis Vuitton,
Louis Vuitton Jewellery, Sephora, Guerlain, Chaumet, Tiffany & Co., and
Ray-Ban represents a significant milestone in the Group’s collaborative growth
strategy. Government-led reforms under Vision 2030 are pivotal, aiming to
diversify the economy beyond oil dependence and fostering a conducive
environment for retail growth. This includes significant investments in
infrastructure, such as the development of modern shopping malls and
lifestyle-oriented retail spaces, enhancing consumer experiences. The rise of
e-commerce, propelled by increased digital adoption and a young, tech-savvy
population, is reshaping retail channels and broadening market reach. Also, the
integration of entertainment and retail, exemplified by lifestyle-led
developments in cities like Riyadh, is attracting higher footfall and consumer
engagement. The influx of international brands and the growing preference for
premium products among consumers are also contributing to the sector's
dynamism. Collectively, these factors underscore the robust expansion of Saudi
Arabia's retail market, positioning it as a significant player in the regional
retail landscape.

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Key Market Challenges
Supply
Chain Constraints
Supply chain constraints present a significant
challenge to Saudi Arabia's retail market, impacting efficiency, cost
structures, and customer satisfaction. The Kingdom's vast geography and dispersed
urban centers complicate logistics, making timely distribution to remote areas
difficult. This is exacerbated by a shortage of warehousing space, particularly
in major cities like Riyadh and Jeddah, where over 95% of available warehouse
space is already occupied, leading to increased rental costs and limited
storage options. Also, regulatory complexities and stringent customs procedures
can cause delays in import clearance, affecting inventory levels and leading to
stockouts. The reliance on traditional inventory management practices further
hampers responsiveness to market demands. While initiatives under Vision 2030
aim to modernize logistics infrastructure and streamline regulations, the
current supply chain challenges continue to pose significant hurdles for
retailers striving to meet consumer expectations in a rapidly evolving market.
Regulatory
Compliance
Regulatory compliance remains a notable challenge for
the retail market in Saudi Arabia, particularly amid the country’s rapid
economic transformation. Retailers must navigate an evolving legal and
regulatory landscape shaped by the government's Vision 2030 reforms. New
policies related to Saudization, data protection, consumer rights, and taxation
require businesses to regularly update their operations and administrative
processes. For example, increased enforcement of local hiring quotas adds
complexity to workforce planning, especially for multinational retailers. Also,
adapting to new e-commerce regulations, such as requirements for local servers
and secure payment systems, can be costly and time-consuming. Import
regulations, product labeling standards, and frequent policy updates further
complicate compliance, especially for small and medium enterprises. Retailers
that fail to keep pace with these regulations risk penalties, reputational
damage, and operational disruptions. Thus, maintaining regulatory compliance in
a dynamic legal environment is a persistent and resource-intensive challenge
for retail businesses in Saudi Arabia.
Key Market Trends
Increased
Adoption of Digital Payment
The adoption of digital payments in Saudi Arabia has
experienced remarkable growth, significantly transforming the retail landscape.
As a part of this, according to a recent study as of 2024, electronic
payments accounted for 79% of all retail transactions, up from 70% in 2023,
marking a substantial increase in cashless transactions. This surge is
attributed to several factors, including the widespread use of smartphones,
improved internet connectivity, and the proliferation of fintech applications,
which have made digital payments more accessible and convenient for consumers.
Government initiatives, such as the Financial Sector Development Program under
Vision 2030, have also played a pivotal role by enhancing payment
infrastructure and promoting digital financial services. The rise in digital
payment adoption has not only streamlined retail transactions but also
bolstered the growth of e-commerce, as consumers increasingly prefer the
convenience and security of online payments. Looking ahead, the trend toward
digital payments is expected to continue, further reshaping Saudi Arabia's
retail sector and contributing to the nation's broader economic modernization
goals.
E-Commerce
Surge
Saudi Arabia’s e-commerce sector is experiencing rapid
growth, establishing itself as a regional leader in digital retail. With high
internet penetration and widespread smartphone usage, a tech-savvy population
is increasingly turning to online shopping for convenience and variety.
Government initiatives under Vision 2030 have played a crucial role in
promoting digital transformation by improving logistics infrastructure and
supporting fintech innovations, which have made online transactions smoother and
more secure. The rise of mobile commerce further accelerates this trend, as a
significant portion of purchases now occur through mobile apps, catering to
on-the-go consumers. Also, the growing preference for contactless payments and
home delivery services has boosted e-commerce adoption. This surge is reflected
in strong market projections, with the sector expected to continue expanding
robustly over the coming years. Overall, the e-commerce boom is reshaping Saudi
Arabia’s retail landscape, driving innovation, enhancing consumer choice, and
contributing significantly to the country’s economic diversification goals.
Increased
Focus on Sustainability
Saudi Arabia's retail sector is increasingly
prioritizing sustainability, aligning with national goals under Vision 2030 to
reduce carbon emissions and promote environmental stewardship. Retailers are
adopting eco-friendly practices such as using sustainable materials in store
fit-outs, implementing energy-efficient lighting, and reducing water
consumption. For instance, companies are utilizing reclaimed wood, recycled
metals, and low-VOC paints to create greener retail environments. Also,
energy-saving technologies like LED lighting and water-efficient fixtures are
being incorporated to minimize environmental impact. These initiatives not only
contribute to environmental conservation but also resonate with the growing
consumer demand for sustainable products and practices. As sustainability
becomes a key differentiator in the market, retailers are embracing these
changes to enhance brand reputation and meet the expectations of
environmentally conscious consumers.
Segmental Insights
Distribution
Channel Insights
Supermarket/Hypermarket dominated the Saudi Arabia Retail
market, driven by their ability to offer wide product assortments under one
roof, catering to the convenience and diverse needs of consumers. Their
strategic locations in urban and suburban areas make them easily accessible,
attracting large foot traffic. Competitive pricing, frequent promotions, and
loyalty programs further enhance their appeal. Also, the growing middle-class
population with increasing disposable income favors these formats for their
reliable quality and variety. The integration of modern technology and
e-commerce platforms has allowed supermarkets and hypermarkets to expand their
reach through online shopping and home delivery services. Government support
for retail infrastructure and investment in supply chain modernization also
strengthen their position, making supermarkets and hypermarkets a cornerstone
of Saudi Arabia’s retail landscape.

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Regional Insights
Western region dominated the Saudi Arabia Retail market,
due to its strategic geographic location, serving as a gateway for both
domestic and international trade. Major cities like Jeddah and Mecca attract
millions of residents and visitors annually, boosting retail demand
significantly. The region benefits from well-developed infrastructure,
including modern shopping malls, commercial centers, and efficient transport
networks that facilitate smooth logistics and supply chains. Also, the Northern
& Central region's is driven by status as administrative and economic hubs.
Riyadh, the capital city in the Central region, hosts a large population with
high purchasing power and a growing middle class, fueling demand for diverse
retail offerings. The regions benefit from extensive infrastructure
development, including modern malls, commercial districts, and improved
transport links, enhancing accessibility.
Recent Developments
- In February 2025, Saudi
Arabia’s Panda Retail Co. plans to open over 20 new stores in 2025, continuing
the rapid expansion. This growth aligns with Panda’s commitment to sustainable
retail development driven by innovation. It also reflects the robustness of
Saudi Arabia’s retail sector, which achieved sales of $9.97
billion in the third quarter of 2024, demonstrating strong performance despite
global economic uncertainties.
- In March 2025, Carrefour,
has unveiled ambitious expansion plans in Saudi Arabia, including the addition
of new hypermarkets and the enhancement of its online platform. Operated in the
region by Majid Al Futtaim, Carrefour’s growth strategy aligns closely with
Saudi Arabia’s Vision 2030, supporting the country’s economic diversification
goals by investing in the modernization of the retail sector.
- In June 2024, Spinneys,
a leading premium fresh food retailer, has announced the launch of its
inaugural store in Saudi Arabia. The new outlet is situated within La Strada
Yard, a dynamic mixed-use development in the affluent An Nuzha district of
Riyadh. As an emerging center for both residential and commercial activities,
La Strada Yard provides an ideal setting for Spinneys’ first entry into the
Kingdom’s market.
Key Market Players
- 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)
By Type
|
By Retail Store Type
|
By Region
|
- Food Retail
- Non-Food Retail
|
- Supermarket/Hypermarket
- Online
- Baqala Stores
- Departmental Stores
- Exclusive Stores
- Convenience Stores
- Others
|
- Eastern
- Western
- Northern & Central
- Southern
|
Report Scope:
In this report, the Saudi Arabia Retail Market has been
segmented into the following categories, in addition to the industry trends
which have also been detailed below:
- Saudi Arabia Retail Market, By Type:
o Food Retail
o Non-Food Retail
- Saudi Arabia Retail Market, By Retail Store Type:
o Supermarket/Hypermarket
o Online
o Baqala Stores
o Departmental Stores
o Exclusive Stores
o Convenience Stores
o Others
- Saudi Arabia Retail Market,
By Region:
o Eastern
o Western
o Northern & Central
o Southern
Competitive Landscape
Company Profiles: Detailed analysis of the major companies presents
in the Saudi Arabia Retail Market.
Available Customizations:
Saudi Arabia Retail Market report with the
given market data, TechSci Research offers customizations according to a
company's specific needs. The following customization options are available for
the report:
Company Information
- Detailed analysis and
profiling of additional market players (up to five).
Saudi Arabia Retail Market is an upcoming report to
be released soon. If you wish an early delivery of this report or want to
confirm the date of release, please contact us at [email protected]