Arab News
Arab News, Tues, Feb 04, 2025 | Shaaban 5, 1446
Industry leaders meet
in Riyadh to Redefine Saudi retail market
Saudi
Arabia: Over 100 speakers from more than 600 organizations will convene at
the Retail Leaders Circle Global Forum 2025 in Saudi Arabia to discuss
collaboration amid digital innovation and economic reforms.
The two-day event, taking place from Feb. 4-5 at the Fairmont Hotel in Riyadh,
will bring together industry executives, policymakers, and investors to explore
strategies for navigating a rapidly changing retail landscape.
Themed “Rebuilding a Shared Future,” the event aims to address how the sector
can rebuild trust and cooperation while adapting to digital transformation,
shifting consumer behaviors, and new regulatory frameworks.
This year’s forum comes as Saudi Arabia’s retail sector continues to show strong
resilience and sustained growth, with total sales reaching SR37.4 billion ($9.97
billion) in the third quarter of 2024, despite ongoing global economic
uncertainties.
Retail sales in the Kingdom are forecast to reach $161.4 billion by 2028,
according to data platform Statista, while the e-commerce sector is projected to
surpass $13.2 billion by 2025.
“Saudi Arabia’s Vision 2030 is really shaking up the retail sector, and we’re
seeing exciting changes across the board,” said Panos Linardos, chairman of the
RLC Global Forum, in an interview with Arab News.
He pointed out that retail is a key pillar of the Kingdom’s diversification
efforts, and “it’s evolving rapidly with digital transformation, regulatory
changes, and shifting consumer expectations.”
Linardos added: “There’s a lot of opportunity ahead, but also some challenges
that need to be tackled to fully unlock the sector’s potential. That’s where the
RLC Global Forum comes in.”
RLC is an invitation-only platform that brings together industry leaders,
policymakers, and innovators to discuss key issues shaping the retail sector.
Some of the partners involved include Diriyah Co., Apparel Group, and Cenomi
Centers, the largest owner, operator, and developer of contemporary lifestyle
centers in Saudi Arabia.
Chalhoub Group, and Panda Retail Co. are also set to attend.
The event provides data-driven research, thought leadership, and best practice
sharing, in line with Saudi Arabia’s Vision 2030, which seeks to diversify the
economy and position the Kingdom as a global retail and business hub.
“Retailers in Saudi Arabia face several challenges, such as competition from
cross-border e-commerce, changing consumer expectations, and regulatory
complexities,” Linardo said.
To stay competitive, he added that retailers need to “embrace digital
transformation, adopt omnichannel strategies, and use data to better understand
and serve their customers.”
The Kingdom’s retail sector is experiencing significant growth and investment
opportunities, driven by Vision 2030 and the accelerated digital transformation.
The demand for seamless shopping experiences and experiential retail concepts
continues to rise, driving expansion in e-commerce, lifestyle destinations, and
mixed-use developments.
“Mega-projects like NEOM, ROSHN, and Diriyah Gate are also fueling demand for
high-end retail and hospitality-focused shopping experiences, making the market
even more attractive,” Linardos said.
The forum chairman mentioned that the growing focus on smart retail solutions,
AI-driven insights, and sustainable practices is creating new opportunities for
forward-thinking investors.
Strengthening investment climate
Saudi Arabia’s retail sector continues to attract international investors,
supported by progressive economic reforms and policies aimed at fostering a
transparent and competitive market.
The Kingdom has made significant strides in streamlining regulations, enhancing
investor protections, and reducing barriers to entry, creating an environment
that encourages long-term growth and foreign direct investment.
“Saudi Arabia’s booming investment landscape is no accident. It’s the result of
deliberate efforts to create a business-friendly and secure environment,
supported by policies and reforms that align with global investment standards,”
Linardos said.
He mentioned that the International Monetary Fund had described the new law as a
game-changer, offering equal opportunities to both Saudi and foreign investors,
along with stronger protections and clearer rules of engagement.
Linardos explained that the challenge now is getting the word out — building
investor confidence and showcasing Saudi Arabia’s retail market as a
high-potential, forward-thinking destination.
Future of retail innovation
The rapid integration of artificial intelligence, data analytics, and predictive
modeling is transforming the global retail landscape, and Saudi Arabia is no
exception.
RLC will also explore how businesses can leverage AI to optimize operations,
enhance customer engagement, and drive new business models.
“Innovation and technology are reshaping Saudi Arabia’s retail sector in a big
way. AI and e-commerce are no longer just buzzwords — they’re driving real
change,” Linardos said.
He pointed out that AI is providing businesses with deeper insights into
consumer behavior, enhancing inventory management, and enabling more
personalized marketing.
“At the same time, e-commerce is making shopping more convenient and accessible,
with digital payment solutions and omnichannel strategies creating seamless
experiences that meet rising customer expectations,” Linardos added.
The chairman further highlighted that for retailers, integrating advanced
technologies is no longer optional but a necessity in an increasingly
competitive and fast-evolving market.
In essence, he added, businesses that embrace innovation early can unlock new
growth opportunities, expand their customer reach, and strengthen their market
position.
Unlocking full value
Saudi Arabia’s e-commerce sector is rapidly expanding, fueled by a digitally
engaged population, rising consumer demand, and the government’s commitment to
digital transformation, with Linardos noting the Kingdom’s emergence as one of
the region’s most promising e-commerce markets.
Industry experts highlight the growing influence of social media, mobile
commerce, and fintech solutions, which are reshaping how consumers shop and
engage with brands.
“The Kingdom’s high social media engagement and widespread mobile use also make
it a prime market for further e-commerce expansion and investment,” said
Linardos.
However, he acknowledged that challenges persist, pointing out that
“cross-border platforms dominate a large share of the market,” while traditional
retail remains deeply embedded in consumer habits.
To fully realize Saudi Arabia’s e-commerce potential, industry leaders stress
the importance of creating a balanced competitive landscape, strengthening
omnichannel strategies, and integrating online and offline shopping experiences.
What’s next?
As Saudi Arabia’s retail sector undergoes transformation, Linardos expects the
industry to move beyond traditional retail models in the coming years, placing
greater emphasis on lifestyle-oriented concepts, integrated retail-tourism
experiences, and cutting-edge digital innovations.
“The growth won’t just come from more stores or online platforms — it will come
from creating unique, immersive experiences that blend culture, entertainment,
and commerce in ways that haven’t been seen before in the region,” he added.
Linardos also explained that the challenge for retailers will be to remain
flexible, embracing innovation while maintaining a strong local connection.
Those who can strike the right balance — leveraging technology, data, and
customer insights — will not only grow but also redefine what retail means in
Saudi Arabia, he said.