Retail sector in Saudi Arabia - statistics & facts
The retail sector in Saudi Arabia has witnessed a significant transformation in recent years, pushed by a combination of economic reforms, ever-changing consumer preferences, and expansion of retail infrastructure. The kingdom now hosts a variety of local and international retail brands, catering and adapting to consumer preferences.
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Saudi retail brands, such as Danube and Panda, have established a strong presence in the Saudi Arabian market, offering consumers a wide range of products and services across various categories, including groceries, electronics, fashion, and household goods. These Saudi hypermarkets, – which are stores combining a supermarket and a department store, have a larger presence in the kingdom than non-Saudi ones, such as Carrefour.
By 2025, the e-commerce market in Saudi Arabia is expected to reach around 21 billion U.S. dollars. Retailers are therefore adopting e-commerce platforms and digital payment solutions, supported by the Saudi central bank’s (SAMA) initiatives, to facilitate digital payments and fintech innovation. Popular online retail shops accessed by Saudis include Amazon, UAE online fashion platform Namshi, and Jarir, a Saudi company offering consumer IT products, electronics, office supplies, and books.
The KSA retail sector outlook
As part of the country’s Vision 2030 initiative, - aimed at reducing its dependence on oil revenues and fostering growth in non-oil sectors, - the retail sector has experienced substantial investments and regulatory reforms to foster competition. By 2026, the retail sales value was forecasted to continue increasing to approximately 176.5 billion U.S. dollars. Saudi Arabia had the highest retail score index score among other countries in the MENA region. The index is based on population, GDP, retail sales, market attractiveness, country risk, and market saturation.Saudi retail brands, such as Danube and Panda, have established a strong presence in the Saudi Arabian market, offering consumers a wide range of products and services across various categories, including groceries, electronics, fashion, and household goods. These Saudi hypermarkets, – which are stores combining a supermarket and a department store, have a larger presence in the kingdom than non-Saudi ones, such as Carrefour.
Online retail in KSA
E-commerce has caused a paradigm shift in the Saudi Arabian local retail market. Offering convenience and accessibility to customers, consumers increasingly opt for online shopping over brick-and-mortar stores. This shift has created job opportunities, from online marketing and web design to logistics. It has leveled the playing field for emerging small and medium-sized businesses to compete with established players in the market.By 2025, the e-commerce market in Saudi Arabia is expected to reach around 21 billion U.S. dollars. Retailers are therefore adopting e-commerce platforms and digital payment solutions, supported by the Saudi central bank’s (SAMA) initiatives, to facilitate digital payments and fintech innovation. Popular online retail shops accessed by Saudis include Amazon, UAE online fashion platform Namshi, and Jarir, a Saudi company offering consumer IT products, electronics, office supplies, and books.
