In 2023, retail sales in Saudi Arabia were estimated at ***** billion U.S. dollars. By 2028, the volume of retail sales in the country was forecast to increase to approximately ***** billion U.S. dollars.

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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

Explore the KSA Retail Market size in 2023, featuring Market Forecasts & Outlook, industry trends, and growth opportunities.

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%.

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 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.

Saudi Arabia E-Retail Market Size, Report 2030F

This statistic present the share of the online retail market in Saudi Arabia in 2017, split by type. That year, the share of online retail of consumer electronics amounted to around ** percent, followed by apparel and footwear with around ** percent.

The Saudi Arabia retail banking market size is projected to expand at a CAGR of 5.70% between 2025 and 2034, driven by the ongoing shift towards mobile banking due to rapid digitalisation and the development of the banking and financial services sector in the region.

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%

Dive deep into the dynamics of Saudi Arabia Food & Grocery Retail Market, size at USD 60.94 billion in 2023 featuring industry analysis and growth opportunities

Industry Saudi Arabia Retail comes with extensive industry analysis of development components, patterns, flows, and sizes. The report calculates present and past market values to forecast potential market management during the forecast period between 2025 - 2033.

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.

This statistic describes the forecasted value of retail industry in Saudi Arabia from 2018 to 2023. According to forecasts, the value of the retail sector in Saudi Arabia will total at about *** billion U.S. dollars by 2023.

Saudi Arabia’s smart retail sector is projected to exceed USD 1.68 billion by 2025–30, driven by increased adoption of retail technologies and consumer preference for modern shoppi

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.

In 2022, Saudi Arabia had the highest market attractiveness score among eight countries in the Middle East and North America, at ****. Turkey had the second highest score with ****.

The Saudi Arabia Pharmacy Retail market was valued at USD 7.34 Billion in 2024 and is expected to grow to USD 12.67 Billion by 2030 with a CAGR of 9.53%.

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

Saudi Arabia Automotive Retail Market is projected to reach USD 74.74 billion by 2032, growing at a CAGR of 16.13% from 2024-2032.