Dubai– The Middle East and North Africa (MENA) region have asserted their presence in the global retail scene, with Saudi Arabia making a significant leap in the latest Global Retail Development Index (GRDI) released by Kearney. The bi-yearly survey, evaluating promising retail markets worldwide, places the MENA region in the spotlight for its remarkable retail resilience, underscoring Saudi Arabia's ascendancy by securing the third rank, a notable jump of nine positions.
The Kingdom's ascent in the GRDI rankings is a result of a strategic shift from oil dependency, constituting 40% of its GDP. Saudi Arabia's embrace of technological advancements, coupled with ambitious government plans, has fostered a conducive environment for retail innovation and growth. The youthful demographic further adds to the appeal, creating a potent combination that positions Saudi Arabia as a retail powerhouse.
Several factors contribute to Saudi Arabia's remarkable climb in the GRDI rankings:
Workforce Development: The Kingdom has achieved significant growth in employing Saudi nationals in high-skilled jobs, surpassing Vision 2030 targets. Female workforce participation has doubled, reflecting a commitment to inclusivity.
Digital Transformation: Non-cash retail transactions have surged from 16% in 2016 to 62% in 2022, with a goal of reaching 70% by 2030. The integration of Buy Now Pay Later services, pioneered by domestic providers Tamara and Tabby, further propels the digital retail landscape.
Economic Indicator: Investment deals witnessed a robust 95% increase, and licenses surged by 267% in 2022, signaling a robust economic climate conducive to retail growth.
Technological Integration: The Saudi consumer market showcases a rapid adoption of digital and artificial intelligence (AI) technologies. Mobile commerce and AI-enabled experiential retail are becoming integral parts of the retail landscape.
International Presence: The entry of international brands and the expansion of entertainment and lifestyle sectors indicate a thriving retail environment, attracting global players.
