Saudi Arabia Duty-Free and Travel Retail Market Projected to Reach USD 726.1 Million by 2034, At 6.34% CAGR

Saudi Arabia Duty-Free and Travel Retail Market Overview
Market Size in 2025: USD 417.7 Million
Market Forecast in 2034: USD 726.1 Million
Market Growth Rate 2026-2034: 6.34%

According to IMARC Group's latest research publication, "Saudi Arabia Duty-Free and Travel Retail Market Size, Share, Trends and Forecast by Product Type, Distribution Channel, and Region, 2026-2034", the Saudi Arabia duty-free and travel retail market size reached USD 417.7 Million in 2025. Looking forward, IMARC Group expects the market to reach USD 726.1 Million by 2034, exhibiting a growth rate (CAGR) of 6.34% during 2026-2034.

Download a sample PDF of this report: https://www.imarcgroup.com/saudi-arabia-duty-free-travel-retail-market/requestsample

How AI is Reshaping the Future of Saudi Arabia Duty-Free and Travel Retail Market

● AI-powered personalization engines in Saudi duty-free and travel retail are using real-time data on spend, flight time, and loyalty status to push hyper-targeted offers, lifting conversion on digital touchpoints by more than 20% in premium categories.

● Smart computer-vision and RFID systems in airport and border-store environments are tracking stock levels and shopper flows minute by minute, helping operators reduce out-of-stock incidents by up to 30% and optimize high-margin shelf space automatically.

● Dynamic pricing tools are analysing demand peaks around big events and weekend travel surges, allowing duty-free operators to tweak prices and bundles in near real time, protecting margins while still delivering visible savings versus domestic retail.

● AI-driven language and translation chatbots are supporting travellers in Arabic, English, and multiple Asian and European languages, cutting average service wait times sharply and helping staff handle higher passenger volumes without compromising experience quality.

● Predictive analytics platforms are integrating tourism, airline, and spend data so Saudi operators can forecast passenger profiles per flight, pre-plan assortments, and target campaigns, increasing basket sizes and cross-category upsell opportunities in beauty, luxury, and F&B.

Saudi Arabia Duty-Free and Travel Retail Market Trends & Drivers:

One huge driver powering the Saudi Arabia duty-free and travel retail market right now is the massive boost from Vision 2030, which is all about ramping up tourism and making the country a go-to spot for visitors. With around 100 million tourists flocking in, the sector's pumping SAR 444.3 billion into the GDP, and international spending alone hits SAR 227.4 billion, showing how travelers are splashing cash on duty-free goodies like perfumes and fashion. The government's rolling out schemes like the Rules for Establishing Duty-Free Markets at air, sea, and land ports, setting standards for operations and licensing to make things smoother. In real life, this means airports and borders are turning into shopping havens, drawing crowds with exclusive deals. Companies are teaming up with global brands to stock up on luxury items, and it's creating over 2.5 million jobs in related areas, keeping the momentum strong as more events and attractions pull in diverse crowds.

Airport expansions are emerging as a key trend shaking up the duty-free scene in Saudi Arabia, with major upgrades making travel retail more accessible and appealing. The government's investing big in infrastructure under Vision 2030, like revamping hubs in Riyadh and Jeddah to handle surging air traffic and turn them into world-class shopping zones. Stats show the market's thriving thanks to these moves, with duty-free spots now at all entry points, boosting sales through better layouts and wider product ranges. For instance, the launch of Al Waha Duty-Free Company by the Public Investment Fund is a game-changer, as the first homegrown operator focusing on local flavors alongside international favorites. In practice, this means quicker customs and more engaging experiences for shoppers, like pop-up stores and tech-savvy kiosks, which are drawing in millennials and families alike, expanding the market by making every trip feel like a retail adventure.

Rising consumer affluence and the shift to digital tech are fueling growth in Saudi Arabia's duty-free and travel retail market, as shoppers crave personalized, seamless experiences. With over 60% of the population under 35 and super tech-savvy, there's a big push for apps and online pre-orders that let you snag deals before even landing. Government initiatives are backing this with better e-commerce regs and digital payment promotions, where cashless transactions now dominate retail. Companies like those in the market are rolling out AI-driven recommendations and virtual try-ons, helping boost basket sizes and loyalty. In everyday scenarios, this trend means tourists can browse duty-free catalogs on their phones during flights, with stats highlighting increased demand for luxury and sustainable products, turning occasional buyers into regulars and opening up new revenue streams for operators.

Ask analyst of customized report: https://www.imarcgroup.com/request?type=report&id=31862&flag=E

Saudi Arabia Duty-Free and Travel Retail Industry Segmentation:

The report has segmented the market into the following categories:

Product Type Insights:

● Beauty and Personal Care
● Wines and Spirits
● Tobacco
● Eatables
● Fashion Accessories and Hard Luxury
● Others

Distribution Channel Insights:

● Airports
● Airlines
● Ferries
● Others

Regional Insights:

● Northern and Central Region
● Western Region
● Eastern Region
● Southern Region

Competitive Landscape:

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

Recent News and Developments in Saudi Arabia Duty-Free and Travel Retail Market

● January 2026: AI-powered personalization engines analyze passenger data at Saudi airports, delivering targeted recommendations that boost impulse buys by 25%.

● December 2025: Duty-free sector embraces AR platforms and data analytics for personalized promotions, driving 9.7% higher tourist spending via mobile apps and interactive virtual shelves in upgraded airport terminals.

● Aug 2025: Lagardère Travel Retail expands to 10 Saudi airports from 3 prior year, opening Aelia Duty Free at Tabuk with logistics center to support NEOM gateway traffic surge.

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

This release was published on openPR.