Kingdom of Saudi Arabia Retail Market Dynamics, Q1 2026

Retail performance across Riyadh and Jeddah remains strong, underpinned by sustained population growth, increasing tourism arrivals, and rising consumer spending, particularly within the F&B and experiential retail segments, which continue to drive footfall and tenant demand.

Retailers are rapidly adapting by diversifying revenue streams through experiential activations, F&B expansions, and flexible leasing models, aligning with evolving consumer behaviours and demand for dynamic, lifestyle-oriented retail environments.

A substantial pipeline of super-regional retail developments is expected to enter the market, particularly in Riyadh, with projects increasingly adopting destination and experiential concepts rather than traditional retail formats to attract diverse consumer segments.