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Saudi Retail Market Expected to Reach $176 billion in 2026

A man walks in a shop in Jizan, southern Saudi Arabia (Asharq Al-Awsat)
A man walks in a shop in Jizan, southern Saudi Arabia (Asharq Al-Awsat)
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Saudi Retail Market Expected to Reach $176 billion in 2026

A man walks in a shop in Jizan, southern Saudi Arabia (Asharq Al-Awsat)
A man walks in a shop in Jizan, southern Saudi Arabia (Asharq Al-Awsat)

A newly released report predicted an increase in the size of the retail trade market in Saudi Arabia to reach SAR 661.1 billion ($176.5 billion) by 2026.

The report noted that the value of e-commerce in the country witnessed steady growth over the past years by 18.24 percent.

According to the report issued by the G World company, which is specialized in studies and sectors analysis, retail trade sales increased to SAR 16 billion ($4.2 billion) in 2017, while the value of sales in 2022 reached more than SAR 37 billion ($9.8 billion), as many merchants have turned to modern retail.

Per capita gross domestic product at current prices increased to SAR 29,000 ($7,700) during the second quarter of the previous year compared to SAR 20,000 ($5,300) in the same period in 2021, the report stated.

Purchases through e-commerce sites increased in the kingdom, the report underlined, noting that the total number of users reached 22 million, at an annual rate of 2.7 percent in 2022.

Meshaal Alshammari, Director of Marketing at Lean Node software development company, said: “The biggest challenge facing the modern retail sector is coordination between daily operations and data follow-up, for both the technical and traditional sides.”

He explained: “Every company must put in place the necessary and basic resources to cover the gaps and guarantee a healthy expansion.”

During a recent lecture organized by the Riyadh Chamber, Alshammari noted that some resources were yet to be exploited in the best possible ways, stressing that the current corporate structure was not ideal to reach sustainability.

“Entrepreneurs find it difficult to obtain capital and launch products quickly and efficiently,” he said, pointing to the presence of a large gap in the Saudi financial technology companies sector.

There are only 147 financial technology companies operating in Saudi Arabia, compared to 1,900 companies in Britain, he remarked.

Mohammad Abu Alsaud, general manager of Paytabs, told Asharq Al-Awsat that one of the means to help entrepreneurs was to resort to qualitative companies in the field of e-commerce.

He stressed that the biggest challenge facing emerging merchants is “their neglect of the feasibility study and its method of operation.”

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IMF Policy Committee Underscores Trade Risks to Global Economy, Commits to Fund’s Role

International Monetary Fund (IMF) Managing Director Kristalina Georgieva, right, and International Monetary and Financial Committee (IMFC) chair Saudi Arabia's Finance Minister Mohammed Al-Jadaan speak during a news conference after the International Monetary and Financial Committee (IMFC) meeting, during the World Bank/IMF Spring Meetings at the International Monetary Fund (IMF) headquarters in Washington, Friday, April 25, 2025. (AP)
International Monetary Fund (IMF) Managing Director Kristalina Georgieva, right, and International Monetary and Financial Committee (IMFC) chair Saudi Arabia's Finance Minister Mohammed Al-Jadaan speak during a news conference after the International Monetary and Financial Committee (IMFC) meeting, during the World Bank/IMF Spring Meetings at the International Monetary Fund (IMF) headquarters in Washington, Friday, April 25, 2025. (AP)
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IMF Policy Committee Underscores Trade Risks to Global Economy, Commits to Fund’s Role

International Monetary Fund (IMF) Managing Director Kristalina Georgieva, right, and International Monetary and Financial Committee (IMFC) chair Saudi Arabia's Finance Minister Mohammed Al-Jadaan speak during a news conference after the International Monetary and Financial Committee (IMFC) meeting, during the World Bank/IMF Spring Meetings at the International Monetary Fund (IMF) headquarters in Washington, Friday, April 25, 2025. (AP)
International Monetary Fund (IMF) Managing Director Kristalina Georgieva, right, and International Monetary and Financial Committee (IMFC) chair Saudi Arabia's Finance Minister Mohammed Al-Jadaan speak during a news conference after the International Monetary and Financial Committee (IMFC) meeting, during the World Bank/IMF Spring Meetings at the International Monetary Fund (IMF) headquarters in Washington, Friday, April 25, 2025. (AP)

International Monetary Fund member countries said on Friday that rising trade tensions were sapping growth and fueling uncertainty as well as market and financial stability risks, but reaffirmed their commitment to the institution as critical to helping countries navigate a difficult environment.

In a chair's statement, the IMF's steering committee also reaffirmed prior foreign exchange commitments and voiced support for a realignment of quotas, or shareholding, that better reflects countries' positions in the global economy.

"The world economy is at a pivotal juncture," the International Monetary and Financial Committee (IMFC) said in a statement as the spring meetings of the IMF and World Bank drew to a close. "Following several years of rising concerns over trade, trade tensions have abruptly soared, fueling elevated uncertainty, market volatility, and risks to growth and financial stability."

The message comes at the end of a tense week for policymakers and investors anxious about US President Donald Trump's moves to upend global trade and his commitment to international institutions.

The IMF on Tuesday slashed its economic forecasts for the US, China and most countries, citing the impact of US tariffs now at 100-year highs and warning that rising trade strife would further slow growth. It forecast global growth of 2.8% for 2025, down half a percentage point from its January forecast.

Saudi Arabia's Finance Minister Mohammed Al-Jadaan, who chairs the International Monetary and Financial Committee (IMFC), said the Fund must continue to focus on its core mandates, including expanding trade and growth.

"Addressing global debt vulnerabilities remains a priority for our members, especially for low-income and vulnerable countries," Al-Jadaan told a news conference in Washington.

IMF Managing Director Kristalina Georgieva acknowledged that the raft of current geopolitical flare-ups, especially Trump's push to redesign world trade with a barrage of tariffs, had distracted from discussions about other pressing challenges, including artificial intelligence, in public and behind closed doors.

She said it was encouraging that members had been able to engage in open conversations and share their views "in a fair space," but said she didn't want to minimize the discord.

"I don't want to sugarcoat - we still have quite a challenging time," she said at the news briefing.

Gathering members to talk about Syria had also given a new sense of urgency and purpose to turning a place of conflict into a stable and economically successful country benefiting the region and the world, Al-Jadaan said.

"It is not just about the money, it's about the work that I and other partners can deliver and capacity development, quality data and timely advice."

Al-Jadaan said trade had been the overriding concern during the meetings but he remained optimistic that solutions could be found after a week of candid and frank discussions.

"Actually today, we are holding in a lot better position than when we started the week. People understand the consequences and are working together in a constructive way to resolve tensions," he said.