MENA Retail Market on a Growth Trajectory: Digital Transformation and Urban Expansion Driving 4.71% CAGR Through 2035

The MENA Retail Market is experiencing steady and resilient growth, supported by rapid urbanization, rising consumer spending, and increasing adoption of digital retail technologies. The market is projected to grow from USD 379.57 billion in 2025 to USD 601.53 billion by 2035, registering a CAGR of 4.71% during the forecast period from 2024 to 2035. This growth reflects the region's evolving retail ecosystem, where traditional formats coexist with modern, technology-driven shopping experiences.

Retail in the Middle East and North Africa has transformed significantly over recent years, moving beyond conventional brick-and-mortar models. The competitive landscape is shaped by strong regional and international retailers that continue to invest in store expansion, supply chain optimization, and omnichannel strategies. Prominent players operating in the market include Al-Futtaim Group (AE), Majid Al Futtaim (AE), Savola Group (SA), Carrefour (MA), Lulu Hypermarket (AE), Panda Retail Company (SA), Al Othaim Markets (SA), Spinneys (LB), and Tamimi Markets (SA). These companies play a crucial role in shaping market trends through innovation, customer engagement, and strategic partnerships.

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The market's evolution is strongly supported by historical performance from 2019 to 2024, with 2024 serving as the base year for future projections. During this period, rising population growth, increasing disposable income, and lifestyle changes contributed to higher retail consumption across the region. The forecast period from 2025 to 2035 is expected to witness continued modernization of retail infrastructure and growing acceptance of digital-first shopping models.

One of the most significant growth drivers in the MENA Retail Market is the integration of e-commerce platforms with traditional retail formats. Consumers increasingly expect seamless shopping experiences that allow them to browse online, purchase in-store, or receive products at home. Retailers are responding by investing heavily in omnichannel capabilities, mobile applications, and digital payment solutions to enhance customer convenience and engagement.

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Technological adoption continues to reshape the competitive dynamics of the market. Retailers are leveraging data analytics, artificial intelligence, and automation to better understand consumer behavior, optimize inventory, and personalize marketing strategies. These technologies enable companies to improve operational efficiency while delivering tailored shopping experiences that foster customer loyalty.

Urbanization across the MENA region is another key contributor to retail growth. As cities expand and new commercial hubs emerge, demand for organized retail formats such as hypermarkets, supermarkets, and shopping malls continues to rise. These formats offer wide product assortments, competitive pricing, and convenience, making them attractive to a broad consumer base. In parallel, convenience stores and specialty outlets are gaining popularity in densely populated urban areas.

Consumer preferences in the region are also evolving rapidly. Shoppers are becoming more value-conscious while simultaneously seeking quality, convenience, and brand trust. There is a growing demand for locally sourced products, private-label offerings, and health-focused goods, prompting retailers to diversify their product portfolios. Sustainability and ethical sourcing are also gaining attention, influencing purchasing decisions and encouraging retailers to adopt responsible business practices.

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The market segmentation of the MENA Retail Market spans multiple retail formats and product categories. Key retail formats include hypermarkets, supermarkets, convenience stores, specialty stores, and online retail platforms. Among these, online retail is expected to experience the fastest growth as internet penetration and smartphone usage continue to increase. Product categories range from food and grocery, apparel and footwear, consumer electronics, home and household goods, to health and beauty products, each contributing significantly to overall market revenue.

From a regional perspective, retail growth is particularly strong in parts of the Middle East, driven by economic diversification initiatives, tourism development, and infrastructure investments. Countries within the Gulf region continue to attract global retail brands and large-scale retail developments, strengthening their position as major retail hubs within the MENA region.

Logistics and supply chain efficiency are becoming increasingly important as retailers expand their omnichannel operations. Investments in modern warehouses, last-mile delivery solutions, and real-time inventory tracking are helping retailers reduce costs and improve service levels. These advancements are critical to meeting consumer expectations for faster delivery and product availability.

Looking ahead, the MENA Retail Market is well-positioned for sustained growth through 2035. The convergence of digital innovation, changing consumer preferences, and expanding urban populations creates a favorable environment for retailers willing to adapt and innovate. Companies that focus on technology integration, customer-centric strategies, and operational efficiency are expected to gain a competitive edge in this dynamic market.

Overall, the market outlook highlights a balanced evolution of traditional and modern retail formats, offering substantial opportunities for growth, investment, and long-term value creation across the MENA region.

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