Consumer spending in Saudi Arabia is projected to remain strong, supported by a youthful population and digital growth. Sunil Kumar, CEO of Spinneys, forecasts a 6.4% annual growth rate in consumer spending in Saudi Arabia from 2022 to 2028, compared to 4.3% in the UAE.
Kumar’s insights are echoed by a report from AlixPartners, noting Saudi Arabia’s consumer market is rapidly evolving with adaptable spending patterns and resilience against global economic challenges. As economies in Saudi Arabia and the UAE grow, consumer confidence increases, driving demand for premium products. The convenience offered by digital platforms and e-commerce is also enhancing access to fresh, quality products.
Usman Iftikhar from Oliver Wyman highlights strategic government investments, digital advances, and tourism as key drivers of consumer spending growth in the Middle East and North Africa (MENA) region. The young population in Saudi Arabia, where over 60% are under 30, fuels demand across sectors like education, technology, and entertainment.
Jim Liu of AliExpress and Ali Bailoun of Visa both emphasize the role of technological advancements and a mobile-first population in boosting consumer spending. They predict significant growth in e-commerce, with its sector share expected to reach 46% by 2030 in Saudi Arabia.
Experts identify electronics, food and beverages, and entertainment as sectors benefiting from increased spending. AlixPartners’ report suggests groceries and clothing will dominate spending categories by 2025, with a notable rise in entertainment expenditure.
Inflation and economic uncertainty are influencing consumer behavior, leading to cautious spending. A survey by Oliver Wyman found many households in Saudi Arabia experiencing income drops, prompting changes in shopping habits. However, Kumar notes no slowdown in spending on high-quality food products despite inflation concerns.
Looking ahead, the consumer spending landscape will be shaped by AI, digital-first strategies, and economic diversification. Personalization and alternative payment methods are gaining traction, with millennials and Gen Z driving demand for tech-enabled shopping experiences.
In the retail food sector, health, sustainability, and convenience will guide consumer choices. The demand for whole foods and nutrient-dense options is rising, with consumers seeking personalized, healthy, and sustainable products.