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Saudi Arabia Retail Market Size 2025-2029

The Saudi Arabia retail market size is forecast to increase by USD 64.6 billion at a CAGR of 7.1% between 2024 and 2029.

The market is experiencing significant growth and transformation, driven by the Saudi Arabian government's Vision 2030 economic diversification plan. This initiative aims to reduce the kingdom's reliance on oil revenues and promote a thriving retail sector. The integration of technology is a key catalyst for this transformation, with e-commerce and digital payments gaining popularity among consumers. However, retailers face challenges in navigating the complex regulatory landscape of the industry. Compliance with regulations related to foreign investment, labor laws, and consumer protection is essential for success in the Saudi Arabian market.
Additionally, competition from both local and international players intensifies the need for retailers to differentiate themselves through innovative offerings and customer experience. Adapting to these market dynamics requires a strategic approach, focusing on digital transformation, regulatory compliance, and customer engagement to capitalize on the opportunities presented by the growing retail sector in Saudi Arabia.

What will be the size of the Saudi Arabia Retail Market during the forecast period?

Explore in-depth regional segment analysis with market size data - historical 2019-2023 and forecasts 2025-2029 - in the full report.
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In the dynamic retail market of Saudi Arabia, operational efficiency and emerging technologies are driving innovation. Retailers are investing in retail automation, such as self-checkout kiosks and customer service chatbots, to streamline processes and enhance the shopping experience. Expansion plans are underway, with businesses leveraging business intelligence and data visualization to inform strategic decisions. Ethical sourcing and supply chain transparency are also key priorities, as consumer sentiment shifts towards sustainability and social responsibility. Pricing strategies are being reevaluated, with decision support systems helping retailers optimize costs and remain competitive. M&A activity is on the rise, as larger players seek to expand their market share.
Smart shelf technology and digital signage are also gaining traction, providing real-time inventory management and targeted promotional campaigns. Last-mile delivery is being revolutionized through the use of delivery drones, offering faster and more efficient service. Retailers are focusing on customer retention and brand loyalty, implementing customer satisfaction surveys and loyalty programs. Overall, retail innovation is at the forefront of business growth strategies, with a focus on leveraging technology to meet evolving consumer demands.

How is this market segmented?

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Type

  Non-food retail
  Food retail


Distribution Channel

  Bakalas
  Super markets
  Hyper markets
  Online


Geography

By Type Insights

The non-food retail segment is estimated to witness significant growth during the forecast period.

In the dynamic retail market of Saudi Arabia, various trends are shaping the industry's growth. The expanding population and rising disposable income, influenced by changing consumer lifestyles, have fueled demand for a broad array of non-food products. The Saudi Arabian government's Vision 2030 initiative, focusing on economic diversification and private sector promotion, has further propelled retail growth. Major retailers, such as Jarir and Lulu, have responded to evolving consumer preferences. Jarir, a prominent consumer electronics and bookstore chain, has capitalized on the increasing demand for technology and educational products by offering a wide range of innovative and high-quality offerings.

Meanwhile, Lulu, a leading fashion and lifestyle retailer, has successfully tapped into the growing interest in clothing, accessories, and home goods, providing personalized shopping experiences through its omni-channel retailing strategy. Retail infrastructure has evolved with the adoption of advanced technologies, including mobile payment systems and inventory management systems. These technologies have streamlined operations and improved customer experience. Green supply chains and sustainability practices have gained importance, with retailers embracing blockchain technology for increased transparency and traceability. Digital marketing strategies, including social media marketing, email marketing, and content marketing, have become essential for retailers to reach and engage customers.

Big data analysis and predictive analytics help retailers understand consumer spe

The size of the Saudi Arabia E-Commerce Market was valued at USD XXX Million in 2023 and is projected to reach USD XXX Million by 2032, with an expected CAGR of 15.01% during the forecast period. The e-commerce market in Saudi Arabia is experiencing rapid growth, driven by increased internet penetration, a youthful population, and rising mobile device usage. As one of the largest economies in the Middle East, Saudi Arabia has a robust consumer base that’s transitioning from traditional shopping to online retail. The Vision 2030 initiative, aimed at diversifying the economy beyond oil, strongly supports the expansion of digital and e-commerce sectors. This initiative encourages foreign investments and develops infrastructure for e-commerce businesses, including improved logistics and payment systems, making the environment favorable for both local and international players. Recent developments include: February 2023: The online fashion retailer Namshi, which operated primarily in Saudi Arabia, was acquired by the e-commerce company Noon for a total cash consideration of USD 335.2 million, and this addition of more fashion and lifestyle brands to Noon's digital offering of goods and services in the country, December 2022: Sideup, an e-commerce platform developer, received USD 1.2 million in funding from local and international investors. The business was to use its investment funds to expand its operations in Saudi Arabia and shift its headquarters to Riyadh as part of its plans for Saudi Arabia.. Key drivers for this market are: Increase in Internet Penetration and Smartphone Usage, Promotion of E-commerce by the Government Sector, including Measures to Strengthen Last-Mile Delivery and Improvise Distribution Centers. Potential restraints include: Privacy and security concerns. Notable trends are: Fashion and Apparel Segment is Expected to Grow Exponentially.

Saudi Arabia E-Retail Market Size, Report 2030F

In 2023, fashion accounted for 25 percent of retail trade in Saudi Arabia. The remaining 75 percent of retail trade consisted of electronics, groceries, and other categories. From 2023 to 2028, the compound annual growth rate (CAGR) is expected to increase from six to eight percent. Saudi Arabia’s retail market The Kingdom’s retail industry lists among the most appealing markets worldwide. Saudi Arabia had the highest retail market attractiveness score in the MENA region thanks to a combination of a young, dynamic population, aligned economic reforms, and rising income levels, among others. However, it is worth highlighting that the total retail sales as a share of GDP in the country have experienced a slight decline recently. The COVID-19 pandemic created a change in retail buying behavior in the Kingdom. This change increased online shopping habits in the post-pandemic years, primarily for groceries, food, and beverages, as well as cleaning products. Nevertheless, despite these changes favoring online retail, the e-commerce share of total retail remained around seven percent as of 2022. Retail market in MENA The region’s traditional retail, which is mostly characterized by small and independent stores, has an influential role in the market despite the growing dominance of e-commerce and large retail chains. As of 2022, the annual growth rate of retail e-commerce sales in the Middle East and North Africa was 17 percent, a regional rate that was second only to Latin America. When it comes to fashion, offline sales channels are forecast to remain the dominant way of shopping in MENA in the coming years.

The Saudi Arabian e-commerce market is experiencing robust growth, projected to reach $24.94 billion in 2025, exhibiting a Compound Annual Growth Rate (CAGR) of 12.10% from 2019 to 2033. This expansion is fueled by several key drivers. Rising internet and smartphone penetration are empowering a digitally savvy population, increasingly comfortable with online transactions. Government initiatives promoting digital transformation and diversification of the economy are further bolstering the sector's growth. Furthermore, a young and growing population with high disposable incomes is driving demand for diverse online offerings, particularly within segments like fashion & apparel, consumer electronics, and beauty & personal care. The convenience of online shopping and the competitive pricing strategies employed by major players like Amazon, Noon, and Namshi, are also significant contributing factors. The B2C e-commerce segment dominates the market, though B2B e-commerce is also showing promising growth potential as businesses increasingly adopt online procurement strategies. While the market enjoys significant momentum, certain challenges remain. These include the need for enhanced logistics and delivery infrastructure to meet growing demand efficiently across a geographically diverse nation. Strengthening cybersecurity measures to protect against fraud and data breaches is also crucial. Furthermore, fostering greater consumer trust and confidence in online transactions through robust consumer protection laws and initiatives is vital for continued market expansion. The market is highly competitive, with both established international players and thriving local businesses vying for market share. This competition, while challenging, ultimately benefits consumers through enhanced choices, competitive pricing, and continuous innovation in the online retail landscape. Recent developments include: October 2024: Mastercard has implemented a new technology infrastructure in Saudi Arabia, enabling local processing of e-commerce transactions. The firm states that this system is designed to offer secure and efficient payment services for both Mastercard partners and consumers. Furthermore, it aligns with the Kingdom’s ambition to broaden its digital commerce landscape.September 2024: TBS Holding, a company specializing in the food industry, announced its plans to establish new partnerships in Africa and Saudi Arabia to enhance e-commerce. The company's participation in Seamless 2024 aims to engage with other companies, explore new customer segments, and focus on artificial intelligence technologies in e-commerce services amidst the evolving landscape in the Middle East and Africa. This focus on supporting digital transformation and e-commerce services will boost the company's profitability.. Key drivers for this market are: Increase in Internet Penetration and Smartphone Usage, Promotion of E-commerce by the Government Sector, including Measures to Strengthen Last-Mile Delivery and Improvise Distribution Centers. Potential restraints include: Increase in Internet Penetration and Smartphone Usage, Promotion of E-commerce by the Government Sector, including Measures to Strengthen Last-Mile Delivery and Improvise Distribution Centers. Notable trends are: Increased Internet Penetration and Smartphone Usage​ Drives the Market.

Saudi Arabia Retail Market in terms of revenue was estimated to be $103 billion in 2024 & is poised to reach $145 billion by 2034, growing at a CAGR 3.5%

The size of the MENA Retail Market was valued at USD XX USD Billion in 2023 and is projected to reach USD XXX USD Billion by 2032, with an expected CAGR of 7.12% during the forecast period. The MENA (Middle East and North Africa) retail market refers to the sector of the economy that deals with the sale of goods and services to consumers in this diverse and dynamic region. Encompassing a wide geographical area that includes countries like Saudi Arabia, the UAE, Egypt, Qatar, Morocco, and others, the MENA retail market is influenced by a unique blend of cultural, economic, and technological factors. The retail industry in MENA has witnessed substantial growth over the past few years, driven by a young, tech-savvy population, rising disposable incomes, and evolving consumer preferences. The region is home to a growing middle class, and the increased urbanization in major cities like Dubai, Cairo, and Riyadh has created opportunities for both traditional brick-and-mortar retail stores and digital commerce platforms. This growth is predominantly driven by factors such as the increasing penetration of e-commerce, rising disposable incomes, and the growing population in the region. Additionally, government initiatives to promote retail development, such as the Saudi Vision 2030, are expected to contribute to the market's expansion. Recent developments include: May 2024: Alshaya Group, a Kuwait-based franchise operator, announced the inauguration of a new outlet 'Hampton by Hilton' in Kuwait. The outlet showcases 110 modern and stylishly designed bedrooms, with modern amenities, including a complementary hot breakfast and a fully-equipped gym., May 2024: Al-Futtaim, a Dubai, UAE-based conglomerate, launched its IKEA brand at Dalma Mall in Abu Dhabi, UAE. The launch of this store aimed to cater to the needs and tastes of the local community., March 2024: Lulu Group International, an Abu Dhabi, UAE-based multinational conglomerate, inaugurated its new hypermarket in Dubai Outlet Mall. The new outlet features different products under various segments, including fresh food, grocery, bakery, dairy, electronics, and home appliances., November 2023: CHALHOUB GROUP, a Dubai, UAE-based luxury goods distributor, established a partnership with Inter Parfums, Inc., a perfume distributor in the UAE, Kuwait, Saudi Arabia, Egypt, and Bahrain. This partnership encourages CHALHOUB GROUP to expand its presence for fragrance products in the Middle East region., April 2023: BinDawood Stores, a Saudi Arabia-based distributor, announced its plans to open around 6-7 new supermarkets, hypermarkets, and express stores in the same year. The company aimed to expand its presence in the main cities of Saudi Arabia.. Key drivers for this market are: Improving Infrastructural Facilities to Fuel Market Growth. Potential restraints include: Improving Infrastructural Facilities to Fuel Market Growth. Notable trends are: Improving Infrastructural Facilities to Fuel Market Growth.

In Saudi Arabia Retail Market, E-commerce has increased dramatically as technology adoption rises, which is driving the retail market even more.

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%.

Saudi Arabia AI in Retail and E-commerce Market has valued at USD 245 Million in 2023 and is anticipated to project robust growth in the forecast period with a CAGR of 35.4% through 2029F.

The Saudi Arabian retail market, valued at $157.90 billion in 2025, is experiencing robust growth, projected to expand at a compound annual growth rate (CAGR) of 7.1% from 2025 to 2033. This expansion is fueled by several key drivers. A burgeoning young population with increasing disposable incomes is driving higher consumer spending. Government initiatives promoting economic diversification and infrastructure development, particularly in non-food retail sectors, are also contributing significantly. The rise of e-commerce and the expansion of online retail channels are transforming the landscape, while the increasing popularity of hypermarkets and supermarkets continues to cater to the changing consumer preferences towards convenient shopping experiences. Furthermore, a growing focus on healthy and organic food options is impacting the food retail segment. However, the market faces challenges such as fluctuating oil prices impacting consumer confidence, and intense competition amongst established players and emerging online retailers. Despite these restraints, the market segmentation reveals significant opportunities. The non-food retail sector, encompassing apparel, electronics, and home goods, shows considerable potential for growth driven by rising middle-class spending and increased fashion consciousness. Within the food retail segment, the demand for imported goods and specialized food products presents further expansion opportunities. The distribution channels show a balanced landscape, with supermarkets and hypermarkets maintaining a strong presence, while online channels are experiencing rapid growth, reflecting a shift towards digital shopping habits. The competitive landscape is characterized by established local and international players vying for market share through strategic pricing, branding, and customer loyalty programs. Effective management of supply chain logistics, adapting to evolving consumer preferences, and leveraging technological advancements are crucial strategies for success in this dynamic market.

In 2023, the value of the e-commerce market in Saudi Arabia amounted to *** billion U.S. dollars. This represented an increase from ***** billion U.S. dollars of market value seen in the previous year.

In 2023, non-food retail sales in Saudi Arabia increased by an estimated *** percent. This represented an improvement over the non-food retail sales increase reported in Saudi Arabia in the previous year. Saudi Arabia, an attractive retail market The retail sector in Saudi Arabia is driven by a combination of increasing disposable income, urbanization, and a young population. Coupled with the country’s scale and the diversification efforts led by the government, it positions the kingdom as the most attractive retail market in the region. The retail sales in the country were forecast to continue growing by 2028. Similarly, the food market revenue in Saudi Arabia was forecast to continue increasing by more than ** billion U.S. dollars by 2030. Retail sector in GCC The retail market in the Gulf Cooperation Council (GCC) countries has also experienced growth due to factors like favorable demographics, rising consumer spending, and government initiatives. This growth was forecast to persist, with non-food retail sales in the region projected to reach *** billion U.S. dollars by 2028. The retail industry in the region experienced an acceleration of digital adoption with the arrival of the pandemic, by increasing the need for digitization and e-commerce and shifting trends in consumer behavior.

Saudi Arabia Cosmetics E-commerce & Fragrance Market size was valued at USD 2.8 Billion in 2024 and is projected to reach USD 5.18 Billion by 2032, growing at a CAGR of 8% from 2025 to 2032.

Saudi Arabia Cosmetics E-commerce & Fragrance Market Dynamics

The key market dynamics that are shaping the Saudi Arabia cosmetics e-commerce & fragrance market include:

Key Market Drivers

Growing Digital Consumer Base and E-commerce Adoption: Saudi Arabia is experiencing rapid growth in digital adoption and e-commerce penetration, particularly among young consumers who prefer online shopping for cosmetics and fragrances. Saudi Arabia's e-commerce sector reached SAR 51.6 billion ($13.7 billion) in 2023, with beauty and personal care products accounting for approximately 18% of total e-commerce sales. The Kingdom's digital transformation initiatives have resulted in an 80% internet penetration rate, with 68% of Saudi consumers now regularly shopping online for beauty and personal care products.

Discover Saudi Arabia's e-commerce market, projected to grow from USD 2 billion in 2024 to USD 3.4 billion by 2030, at a CAGR of 12%.

The size of the Saudi Arabia E-commerce Eyewear Market was valued at USD XX Million in 2023 and is projected to reach USD XXX Million by 2032, with an expected CAGR of 5.20% during the forecast period. E-commerce eyewear refers to the online retailing of optical products, including prescription glasses, sunglasses, and contact lenses. This segment has rapidly expanded due to the convenience of shopping from home and the ability to access a wide variety of brands and styles without geographical limitations. E-commerce platforms for eyewear typically offer a comprehensive range of products from high-end designer brands to more affordable options, catering to different styles and budgets. The process often starts with customers selecting frames and lenses from a digital catalog, where they can view detailed images and specifications. Many online eyewear retailers provide virtual try-on features, allowing users to upload their photos or use augmented reality to see how different frames will look on their faces. Prescription lenses can be customized according to the customer's needs, with options for single vision, bifocals, or progressive lenses. Recent developments include: November 2022: Ray-Ban launched its first-ever Middle East-exclusive product, the Ray-Ban Legacy. The sunglasses came in a classic black, featuring gold detailing on the temples and a gold Ray-Ban logo. The sunglasses are a mix of modernity and ancestry, and their pair came in a custom-designed box showcasing the symbolic "shemagh" print, with the intricate packaging highlighting the brand's first Middle East exclusive., July 2022: Lenskart partnered with the Middle East and North Africa's e-commerce giant, noon.com, to expand its foothold and eyewear category across the region. Through this partnership, Lenskart is taking a step toward establishing itself as an omnichannel brand that is accessible to consumers across multiple touchpoints., February 2021: Safilo Group celebrated the Lunar New Year by unveiling a travel retail-exclusive pair of sunglasses from Jimmy Choo across the globe. The contemporary sunglass style featured a sleek, rounded, slim silhouette in acetate, and sunglasses were decorated with the "JC" Jimmy Choo logo on the temples. They came in a black, glitter, and gold color palette.. Key drivers for this market are: Consumption of Tobacco is Rising as Cigarette Segment is Growing at a Significant Pace, Strong Penetration of Retail Distribution Network. Potential restraints include: Growing Awareness about the Harmful effects of Tobacco Products to Hamper Market Growth. Notable trends are: Booming Online Retail Industry.

Saudi Arabia Small Home Appliances Market size was valued at USD 1.56 Billion in 2024 and is projected to reach USD 2.85 Billion by 2032, growing at a CAGR of 7.8% from 2025 to 2032.

Saudi Arabia Small Home Appliances Market Dynamics

The key market dynamics that are shaping the Saudi Arabia small home appliances market include:

Key Market Drivers

Increasing Disposable Income: Saudi Arabia's growing economy and rising disposable incomes have led to increased consumer spending on home appliances. In 2023, the per capita income increased by 2.3%, resulting in a demand for advanced, technologically advanced appliances. This shift in purchasing power is expected to support market growth in smart kitchen devices, cleaning tools, and personal care products.

The Middle East and Africa (MEA) e-commerce market is experiencing robust growth, projected to reach a market size of $135.77 billion in 2025 and maintain a Compound Annual Growth Rate (CAGR) of 14.28% from 2019 to 2029. This expansion is fueled by several factors. Increased internet and smartphone penetration across the region are making online shopping increasingly accessible to a wider consumer base. A young and rapidly growing population, particularly in key markets like the UAE and Saudi Arabia, is driving demand for diverse products and services online. Furthermore, government initiatives promoting digitalization and e-commerce infrastructure development are creating a favorable environment for businesses. The rise of mobile commerce, coupled with convenient payment options like mobile wallets, further contributes to the market's upward trajectory. Significant investment in logistics and delivery networks is addressing previous bottlenecks and enhancing customer experience. The market is segmented by both B2C and B2B activities, with B2C dominating due to high consumer adoption of online shopping. Within the B2C sector, key product categories like beauty & personal care, fashion & apparel, consumer electronics and food & beverage are witnessing considerable growth. However, challenges such as logistical complexities in certain regions, concerns about online security, and the need for greater financial inclusion remain to be addressed to unlock the market's full potential. While the provided data focuses on the period until 2029, extrapolating from the 14.28% CAGR, we can anticipate continued strong growth beyond this point. The sustained expansion in MEA's e-commerce market hinges on continued improvements in digital infrastructure, robust investment in logistics and payment gateways, and tailored marketing strategies that address the unique needs and preferences of diverse consumer segments within the region. The presence of major global players like Amazon, Alibaba, and Walmart, alongside regional players, signifies the market's attractiveness and indicates ongoing competition, leading to innovation and improved services for consumers. The market's future will likely be characterized by further segmentation, specialization, and the increased adoption of innovative technologies such as Artificial Intelligence and machine learning to enhance personalization and customer experience. Recent developments include: June 2024: Kuehne+Nagel initiated the construction of a new fulfillment and distribution center in EZDubai, a prominent e-commerce hub within Dubai South. The chosen location is adjacent to Al Maktoum International Airport and linked to Jebel Ali Port via a bonded logistics corridor., October 2023: Calibrate Commerce, a Dubai-based e-commerce expert, unveiled Calibrate Labs, an incubator tailored for homegrown e-commerce enterprises in MENA. The initiative targets start-ups aiming to develop their own ideas or scale their existing ventures.. Key drivers for this market are: Increase in the Adoption of Latest Technology, Increasing Consumer Interest towards Convenient Shopping solutions. Potential restraints include: Increase in the Adoption of Latest Technology, Increasing Consumer Interest towards Convenient Shopping solutions. Notable trends are: The Adoption of Latest Technology is Increasing.

The Saudi Arabia food retail market, valued at $51.56 billion in 2025, is projected to experience robust growth, driven by a burgeoning population, rising disposable incomes, and a shift towards modern retail formats. The 5.67% CAGR from 2025 to 2033 indicates a significant expansion, exceeding $75 billion by 2033. Key growth drivers include the increasing preference for convenience, the rising popularity of online grocery shopping, and the government's initiatives promoting food security and diversification. The market is segmented by distribution channel (offline and online), packaging type (flexible, semi-rigid, and rigid), and product category (meat and poultry, fruits and vegetables, cereals, dairy, and beverages). The dominance of offline channels is gradually being challenged by the rapid adoption of e-commerce, particularly among younger demographics. Furthermore, the market is witnessing a shift towards healthier and more convenient food options, driving growth in segments like ready-to-eat meals and organic products. Competition is intense, with both international and domestic players vying for market share. Leading companies like Lulu Group International, Carrefour SA, and several prominent Saudi Arabian retailers are employing aggressive competitive strategies including store expansions, private label development, and loyalty programs. The increasing reliance on technology for supply chain optimization and inventory management is also shaping the market landscape. However, challenges such as fluctuating food prices and potential supply chain disruptions remain significant considerations. The Saudi Arabian food retail sector's success depends on adapting to evolving consumer preferences. This includes investing in digital infrastructure to enhance online shopping experiences, expanding into underserved regions, and offering value-added services such as home delivery and personalized shopping experiences. Companies are focusing on enhancing their brand image, promoting sustainable practices, and ensuring food safety and quality to maintain a competitive edge. Successful players are adopting omnichannel strategies, integrating online and offline channels seamlessly to provide a unified and consistent customer journey. The market is poised for further consolidation, with potential mergers and acquisitions driving further growth and efficiency. Government regulations regarding food safety and labeling play a crucial role, and compliance is critical for sustained success in this dynamic and rapidly growing market.

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