Saudi Arabia Retail Market Size to Surpass USD 411.7 Billion by 2034: See Latest Trends & Growth Insights

Saudi Arabia Retail Market Overview

Market Size in 2025: USD 293.6 Billion

Market Size in 2034: USD 411.7 Billion

Market Growth Rate 2026-2034: 3.83%

According to IMARC Group's latest research publication, "Saudi Arabia Retail Market Size, Share, Trends and Forecast by Product, Distribution Channel, and Region, 2026-2034", the Saudi Arabia retail market size was valued at USD 293.6 Billion in 2025. Looking forward, IMARC Group estimates the market to reach USD 411.7 Billion by 2034, exhibiting a CAGR of 3.83% during 2026-2034.

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How AI is Reshaping the Future of Saudi Arabia Retail Market

• AI crunches shopper data for hyper-personalized recs in Saudi retail, where 70% under 35 expect tailored deals boosting conversions via Vision 2030 digital push.​
• Predictive AI slashes stockouts in KSA stores, optimizing inventory with machine learning amid e-commerce at SAR 197 billion and 33.7% grocery dominance.​
• Chatbots and AR try-ons via AWS's $5B AI Zone power seamless buys, cutting support costs 30% for mobile-first youth grabbing 46% digital sales.​
• NEOM's AI-IoT retail ops personalize experiences in zero-carbon hubs, aligning with SDAIA's tech drive amid 98% internet penetration.​
• Retailers use AI analytics for dynamic pricing and promos, lifting basket sizes in Riyadh malls where consumer spend hits SAR 1.41 trillion.

How Vision 2030 is Transforming Saudi Arabia Retail Industry?

Vision 2030 is transforming Saudi Arabia’s retail market by accelerating economic diversification, expanding consumer spending, and fostering a modern, innovation-driven commercial environment. Government initiatives promoting tourism, entertainment, and urban development are increasing footfall across malls and high-street outlets, while reforms encouraging foreign investment are attracting global retail brands. The rapid rise of e-commerce, digital payments, and omnichannel models is reshaping purchasing behavior, pushing retailers to integrate advanced technologies and personalized services. Sustainability goals, logistics upgrades, and SME empowerment further enhance market competitiveness, supporting a vibrant, globally aligned retail ecosystem.

Saudi Arabia Retail Market Trends & Drivers:

One of the major drivers of Saudi Arabia’s retail market is the rapid expansion of e-commerce, fueled by a tech-savvy population and strong government support for digital transformation. With over 70% of the population under 35 and internet penetration exceeding 95%, consumers are increasingly comfortable shopping online, using digital wallets and mobile apps for everything from groceries to luxury goods. The government’s push for 70% cashless payments by 2025 is accelerating this trend, making transactions faster and more convenient. Major players like Noon and Amazon.sa are investing heavily in last-mile delivery and customer service, while traditional retailers are quickly adopting omnichannel models to meet rising demand. This shift is not just about convenience—it’s reshaping how brands interact with customers and how shopping experiences are designed across the Kingdom.​

Another key factor is the ambitious Vision 2030 initiative, which is transforming Saudi Arabia’s urban landscape and driving retail growth through mega-projects and economic diversification. Projects like NEOM, Riyadh Boulevard, and Qiddiya are creating new retail hubs that blend shopping, entertainment, and lifestyle experiences. The government has committed billions in investments to diversify the economy, making retail a focal point for both local and foreign businesses. These developments are attracting international brands, with 100% foreign ownership allowed in most retail categories. As these projects take shape, they are not only boosting consumer spending but also setting new standards for retail environments, with experiential concepts and luxury retail gaining traction across major cities.​

Consumer behavior is also shifting dramatically, with a strong preference for personalized and experiential shopping. Saudis are increasingly seeking more than just products—they want engagement, immersive environments, and tailored recommendations. Retailers are responding by integrating technologies like AI, AR, and VR to offer virtual showrooms, interactive displays, and personalized promotions. Social media and influencer marketing are playing a bigger role in shaping buying decisions, especially among younger shoppers. This focus on experience is driving innovation in store design and customer service, making Saudi Arabia a hotbed for creative retail solutions. As competition intensifies, brands that prioritize customer engagement and personalization are seeing the strongest results.​

Buy the Latest 2026 Edition: https://www.imarcgroup.com/checkout?id=20714&method=1315

Saudi Arabia Retail Industry Segmentation:

The report has segmented the market into the following categories:

Product Insights:

• Food and Beverages
• Personal and Household Care
• Apparel, Footwear and Accessories
• Furniture, Toys and Hobby
• Electronic and Household Appliances
• Others

Distribution Channel Insights:

• Supermarkets and Hypermarkets
• Convenience Stores
• Specialty Stores
• Online Stores
• Others

Regional Insights:

• Northern and Central Region
• Western Region
• Eastern Region
• Southern Region

Competitive Landscape:

The competitive landscape of the industry has also been examined along with the profiles of the key players.

Recent News and Developments in Saudi Arabia Retail Market

• November 2025: Salesforce launched in Saudi Arabia, investing $500 million to boost AI-driven CRM solutions, enhancing personalized customer experiences in retail.​
• October 2025: Saudi Data & AI Authority introduced industry-specific AI guidelines, accelerating AI adoption in retail for inventory and customer analytics improvements.​
• September 2025: Leading retailer Alhokair unveiled AI-powered smart stores integrating facial recognition and automated checkout, reducing wait times by 30% and improving shopper experience.​

Note: If you require specific details, data, or insights that are not currently included in the scope of this report, we are happy to accommodate your request. As part of our customization service, we will gather and provide the additional information you need, tailored to your specific requirements. Please let us know your exact needs, and we will ensure the report is updated accordingly to meet your expectations.

About Us:

IMARC Group is a global management consulting firm that helps the world’s most ambitious changemakers to create a lasting impact. The company provide a comprehensive suite of market entry and expansion services. IMARC offerings include thorough market assessment, feasibility studies, company incorporation assistance, factory setup support, regulatory approvals and licensing navigation, branding, marketing and sales strategies, competitive landscape and benchmarking analyses, pricing and cost research, and procurement research.

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