Middle East Retail Market Report 2025 | Growth, Trends, and Forecast by 2033

Middle East Retail Market Overview

Market Size in 2024: USD 2,120 Billion

Market Size in 2033: USD 3,028 Billion

Market Growth Rate 2025-2033: 4.04%

According to IMARC Group's latest research publication, "Middle East Retail Market: Industry Trends, Share, Size, Growth, Opportunity and Forecast 2025-2033", The Middle East retail market size was valued at USD 2,120 Billion in 2024. Looking forward, IMARC Group estimates the market to reach USD 3,028 Billion by 2033, exhibiting a growth rate of 4.04% during 2025-2033.

How AI is Reshaping the Future of Middle East Retail Market

• Revolutionizing Customer Experience: AI-powered chatbots and virtual shopping assistants are transforming customer interactions, with the Middle East AI in retail market projected to surge from USD 200.08 million in 2024 to USD 1,445.09 million by 2032.
• Smart Inventory Management: Major retailers like Noon and Amazon are leveraging AI algorithms for real-time inventory tracking and predictive restocking, reducing out-of-stock scenarios by 35% across regional stores.
• Personalized Shopping Journeys: AI-driven recommendation engines are boosting conversion rates by 25% for regional e-commerce platforms, with 80% of Middle Eastern retailers planning to adopt AI automation by 2025.
• Automated Checkout Solutions: Smart supermarkets across UAE and Saudi Arabia are implementing AI-powered checkout systems, cutting average transaction times by 60% and reducing operational costs significantly.
• Virtual Try-On Technology: Fashion retailers in the region are deploying AR and AI-powered virtual fitting rooms, enabling customers to try products from home and increasing online sales by 40%.

Grab a sample PDF of this report: https://www.imarcgroup.com/middle-east-retail-market/requestsample

Middle East Retail Market Trends & Drivers:

• The Middle East retail landscape is experiencing a remarkable transformation driven by rapid digitalization and changing consumer behavior. Government initiatives like Saudi Arabia's Vision 2030 and UAE's digital transformation agenda are accelerating the adoption of smart retail technologies. The region's high smartphone penetration rate of 78% and growing internet connectivity are creating fertile ground for omnichannel retail experiences. Major shopping destinations like Dubai Mall and Mall of the Emirates are integrating advanced technologies, including IoT sensors and AI-powered customer analytics, to enhance visitor experiences and optimize operations.
• The surge in e-commerce adoption is reshaping traditional retail models across the Middle East. Online retail sales have grown exponentially, with platforms like Noon, Amazon Middle East, and local players capturing significant market share. The pandemic accelerated this shift, with many consumers embracing digital shopping for the first time. Quick commerce and same-day delivery services are now standard expectations, pushing retailers to innovate their supply chain and logistics capabilities. This digital boom is particularly evident in urban centers where tech-savvy millennials and Gen Z consumers drive demand for seamless, app-based shopping experiences.
• Demographic shifts are creating new opportunities in the Middle East retail sector. The region's young population, with over 60% under 30 years old, is driving demand for trendy, affordable fashion and electronics. Rising disposable incomes in oil-rich economies are fueling luxury retail growth, with international brands establishing flagship stores in prime locations. Additionally, the growing expatriate population brings diverse shopping preferences, encouraging retailers to expand their product portfolios. Cultural events, seasonal festivals, and religious occasions like Ramadan create significant retail spikes, with many retailers generating 30-40% of their annual revenue during these periods.

Ask analyst of customized report: https://www.imarcgroup.com/request?type=report&id=20243&flag=E

Middle East Retail Industry Segmentation:

The report has segmented the market into the following categories:

Product Insights:

• Food and Beverages
• Personal and Household Care
• Apparel, Footwear and Accessories
• Furniture
• Toys and Hobby
• Electronic and Household Appliances
• Others

Distribution Channel Insights:

• Supermarkets and Hypermarkets
• Convenience Stores
• Specialty Stores
• Online Stores
• Others

Country Insights:

• Saudi Arabia
• Turkey
• Israel
• United Arab Emirates
• Iran
• Iraq
• Qatar
• Kuwait
• Oman
• Jordan
• Bahrain
• Others

Recent News and Developments in Middle East Retail Market

• January 2025: Dubai-based conversational AI startup DXwand secured $4 million in Series A funding led by Algebra Ventures and Shorooq Partners, aimed at enhancing customer service automation across Middle Eastern retail chains.
• February 2025: Major UAE hypermarket chain Carrefour launched AI-powered smart shopping carts in 15 locations, featuring automatic product recognition and contactless payment, reducing checkout times by 70%.
• March 2025: Saudi Arabia's Alshaya Group partnered with Microsoft to implement advanced analytics across 200+ retail outlets, leveraging AI to optimize inventory management and predict consumer demand patterns with 85% accuracy.

Competitive Landscape:

The competitive landscape of the industry has also been examined along with the profiles of the key players.

Note: If you require specific details, data, or insights that are not currently included in the scope of this report, we are happy to accommodate your request. As part of our customization service, we will gather and provide the additional information you need, tailored to your specific requirements. Please let us know your exact needs, and we will ensure the report is updated accordingly to meet your expectations.

About Us:

IMARC Group is a global management consulting firm that helps the world's most ambitious changemakers to create a lasting impact. The company provide a comprehensive suite of market entry and expansion services. IMARC offerings include thorough market assessment, feasibility studies, company incorporation assistance, factory setup support, regulatory approvals and licensing navigation, branding, marketing and sales strategies, competitive landscape and benchmarking analyses, pricing and cost research, and procurement research.

Contact Us:

IMARC Group

134 N 4th St. Brooklyn, NY 11249, USA

Email: sales[@]imarcgroup.com

Tel No:(D) +91 120 433 0800

United States: +1-201971-6302