Middle East Retail Market To Reach USD 3,028 Billion By 2033, Growing At 4.04% CAGR

(MENAFN- IMARC Group) Middle East retail market size reached USD 2,120 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 3,028 Billion by 2033, exhibiting a growth rate (CAGR) of 4.04% during 2025-2033. The Middle East retail market is experiencing robust growth driven by rising consumer spending, digital transformation, and rapid urbanization.

Key Highlights

• Market size (2024): USD 2,120 Billion
• Forecast (2033): USD 3,028 Billion
• CAGR (2025–2033): 4.04%
• E-commerce surges, personalization rises, experiential retail grows, and sustainability shapes consumer preferences in the Middle East.
• Rising disposable incomes, urbanization, tourism, and digital advancements fuel robust retail market growth across the region.
• Food, Beverage, & Grocery: Leads due to high demand for organic and sustainable products, driven by population growth.

How Is AI Transforming the Retail Market in Middle East?

• Personalized Shopping Experiences : AI tailors customer experiences using data analytics, with 71% of shoppers wanting generative AI for personalized retail interactions.
• Inventory Management Boost : AI optimizes stock with predictive analytics, helping retailers like Carrefour improve efficiency via real-time shelf-scanning kiosks.
• Government AI Push : UAE's AI Strategy 2031 drives retail innovation, funding smart tech to enhance customer service and operational efficiency.
• E-commerce Growth Surge : AI-powered platforms fuel e-commerce, with retailers using chatbots and dynamic pricing to boost sales across the region.
• Visual Recognition Tech : Sephora Middle East uses AI for virtual try-ons, enhancing customer convenience and streamlining in-store checkout processes.

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Middle East Retail Market Trends and Drivers

• E-commerce Surge : E-commerce thrives with 80% mobile usage, driving online sales via social media and digital payments.
• AI-Powered Personalization : Retailers leverage AI for tailored recommendations, with 71% of shoppers favoring personalized experiences via generative AI.
• Government Support : UAE's AI Strategy 2031 funds tech innovation, enhancing retail efficiency and customer service through smart solutions.
• Modern Retail Growth : Urbanization fuels mall development, with companies like Emaar expanding to meet experiential shopping demands.
• Sustainability Focus : Retailers adopt eco-friendly practices, supported by UAE regulations, catering to growing consumer demand for sustainable products.

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

• August 2025 : Dubai's smart malls use AI footfall analytics to optimize layouts, boosting dwell time by 15% and tenant sales.
• August 2025 : Abu Dhabi's warehouse automation with AMRs processes 200K orders weekly, cutting fulfillment times by 30%.
• August 2025 : Voice commerce in Dubai enables 20% of repeat grocery orders via smart speakers with 98% accuracy.

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Competitive Landscape:

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

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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.

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