Ammar Hussein is an Affiliate Companion within the Center East and North Africa Analysis Division at Knight Frank
Ammar Hussein, affiliate associate within the analysis division within the Center East and North Africa area at Knight Frank, stated that e-commerce has now represented about 36% of whole point-of-sale transactions in Saudi Arabia, particularly within the classes of leisure and client items, nevertheless it has not negatively affected conventional shops.
He added in an interview with numbersthat each digital gross sales channels and factors of sale grew by 5% in the course of the first half of 2025, which displays a normal progress in spending moderately than changing one channel with one other.
Hussein warned that malls that rely solely on transactions with out offering an built-in expertise threat dropping their attraction, stressing that bodily shops at this time want to supply interactive experiences, momentary occasions, distinct meals gives, and built-in providers resembling “choose up from the shop” and versatile return insurance policies to maintain guests.
Hussein defined that the typical particular person spending within the retail sector ranges between 100 and 400 riyals per go to, as information confirmed that 71% of customers spend inside this vary, and that is associated to month-to-month revenue, the aim of the go to, and the kind of purchases.
He stated that the center phase tends to spend 100-300 riyals, whereas the high-income phase exceeds the barrier of a thousand riyals per go to, which signifies the existence of a twin market that mixes worth segmentation and the premium phase.
He identified that the quantity of spending within the retail sector in Saudi Arabia reached 1.41 trillion riyals in 2024, with an annual progress of seven%, supported by a younger, digitally conscious demographic, growing reliance on digital cost and e-commerce, along with customers’ steady seek for worth.
Hussein anticipated this optimistic momentum to proceed throughout 2025 and past, in gentle of the rising reliance on varied cost instruments, together with “purchase now and pay later,” which contribute to increasing the buying basket and enhancing the participation of broader segments of customers.
Concerning the top-performing sectors, Hussein stated that the meals and beverage sector leads the scene, as eating places and cafes accounted for about 29% of the entire point-of-sale transactions within the first quarter of 2025, supported by the elevated demand for promotional gives, a number of buying channels, lifestyle-driven experiences and fast service choices, particularly with the continuation of the hybrid work fashion.
Concerning future growth, Hussein identified that the Kingdom is making ready so as to add about 4.9 million sq. meters of latest business house by 2030, together with greater than 600,000 sq. meters in Riyadh alone by way of the “The Avenues” and “Diriyah Sq.” initiatives throughout 2026 to 2027.
He identified that the danger exists if new initiatives lack clear and distinct gives, whereas probably the most resilient initiatives are people who mix a number of makes use of, wealthy experiences, and specialised meals choices, according to the city plans of the areas.
