Saudi Arabias $106bln retail industry forecast to grow 12.3% by 2023

Retail sales across four Gulf countries are projected to increase by more than $24 billion over the next five years, with an estimated growth rate of 12.3% in Saudi Arabia, according to new research from Euromonitor International.

Euromonitor’s report revealed that Kuwait, Oman, Saudi Arabia and the UAE are all set to capitalize on the rise of consumerism thanks to favorable demographics, a rise in population and a strong growth trajectory in tourism and per capita income.

The research indicates that the retail industry in Saudi Arabia is currently worth $106 billion and is forecast to steadily rise to $119 billion by 2023. Store-based retailing will continue to dominate, accounting for $103 billion of the overall market in Saudi Arabia, however, non-store retailing, which includes online shopping, direct selling, mobile internet, social media and home shopping, will grow by 93% from 2018 to 2023.

The value of non-store retailing is also forecast to increase across all four Gulf markets between 2018 and 2023, with a 78% increase in the UAE, 68% in Oman and 48% in Kuwait.

Commenting on the forecasts, Fahad Kazim, Vice President, Meydan Malls, said: “As the Euromonitor report suggests, the retail sector is bound to grow in the coming years, despite the recent slowdown. The long-term outlook of the sector remains strong and is expected to welcome a steady growth through to 2023.

The figures have been released ahead of The Retail Summit, set to take place on February 13-14, 2019 at Dubai’s Atlantis Hotel, gathering 800 of the world’s most prominent retail leaders, industry stakeholders and experts.

The two-day summit, held under the patronage of His Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, has received prestigious endorsement with the support of Meydan One, which joins Dubai Chamber of Commerce & Industry as an event partner.

“A strong contributor to the growth of the sector is proactive initiatives taken by the government in streamlining the retail infrastructure and strengthening the investments and tourism landscape of the region.”

Kazim added: “The traditional retail environment in the region is evolving and as it continues to grow, it is gradually moving towards a phy-gital experience. The e-commerce market, which is gaining momentum, will be a huge contributor to the growth of the retail sector in the coming years.

“Keeping up with this trend, the brick-and-mortar retailers are expected to gradually adopt the omni-channel business model to establish an intuitive and smart communication with consumers across online and offline platforms.”

“The needs of consumers have changed and today’s shoppers desire an engaging, personalized and streamlined experience. This is what we bring to the market, delivered through careful learning to tailor-make what the consumers, the international retail community and all involved stakeholders want.”

The Retail Summit 2019 will bring together a new generation of retailers who are delivering a winning combination of outstanding service and ground-breaking use of technology to deliver memorable shopping experiences.

More than 800 attendees are anticipated and the event has been designed for global CEOs and senior teams, bringing together the retail community’s brightest minds to examine the latest thinking of how to win in today’s hyper-volatile landscape.

Headline speakers attending The Retail Summit 2019 in Dubai include billionaire entrepreneur and Virgin Group Founder Sir Richard Branson, Hamad Buamim, President & CEO, Dubai Chamber of Commerce & Industry, and beauty powerhouse Huda Kattan, founder and CEO of Huda Beauty, one of the most successful and fastest growing new brands to be launched this decade.