Let’s take a closer look.
A Surge in Spending
As of 2023, the combined retail market of the GCC reached approximately $309 billion. If projections hold true, we’ll see that number rise to nearly $387 billion by 2028, fueled by economic reforms, digital transformation, and a young, increasingly urban population.
Two countries—Saudi Arabia and the UAE—dominate the landscape. Together, they account for over 75% of total regional retail activity. But each nation tells its own story.
Saudi Arabia: Scale and Strategy
With retail sales around $126 billion in 2023 and a forecast of $161 billion by 2028, the Kingdom remains the heavyweight. Vision 2030, Saudi Arabia’s ambitious national plan, is more than talk—it’s driving real investment in malls, e-commerce platforms, and lifestyle centers. The country’s large population and growing middle class make it an ideal setting for everything from fast fashion to luxury retail.
United Arab Emirates: A Shopper’s Paradise
The UAE, long considered the region’s commercial crossroads, saw retail activity hit $107 billion in 2023 and is expected to top $139 billion by 2028. From the towering Dubai Mall to high-tech e-commerce channels, the Emirates offer an unparalleled mix of physical and digital retail. High disposable incomes and a culture of consumption give global brands a natural home here.
Kuwait: A Quiet Giant
Perhaps the biggest surprise in this story is Kuwait, with a retail market estimated at $47 billion. Some reports put the figure lower, but either way, Kuwait’s influence far outweighs its size. This is a country where affluence meets aspiration. Consumers are hungry for international brands, and the infrastructure—modern malls and digital platforms—is already in place.
Qatar: Luxury, Experience, and Ambition
In Qatar, retail reached around $11 billion in 2023. While smaller in absolute terms, the per-capita wealth is among the highest in the world. From the high-end boutiques of Doha to ambitious developments like Place Vendôme, Qatar is carving a niche in luxury and experiential shopping. Events like the FIFA World Cup have only accelerated that growth.
Oman and Bahrain: Markets in Motion
Oman and Bahrain may not command headlines, but both countries show promising upward curves.
Oman matches Qatar’s size at $11 billion, with rapid growth in non-store retail and a modernizing mall scene. Demographics are on its side, and tourism is adding fuel to the fire.
Bahrain, at roughly $7 billion, is turning heads with a CAGR over 15%. Government investments, rising incomes, and a growing embrace of digital commerce make it a market to watch—especially for omnichannel and mid-market strategies.
What Should Retailers Consider?
Expanding into the GCC isn’t just about chasing growth—it’s about fit. Each country comes with its own consumer profile, regulatory climate, and competitive landscape.
Ask yourself:
Are you targeting affluent, brand-conscious shoppers? Then Kuwait and Qatar are prime candidates.
Are you looking for scale and diverse demographics? Saudi Arabia and the UAE offer size and sophistication.
Do you want to be early in an emerging market? Oman and Bahrain may present lower competition and high upside.
Retailers also need to weigh digital readiness. The UAE and Saudi Arabia are leaders in e-commerce, but others are catching up fast. Government reforms across the board are making foreign investment easier—though each market requires careful navigation of local laws.
The Bottom Line
The GCC retail market is not a monolith. It is a region of contrasts—old and new, traditional and digital, boutique and big-box. But one thing is certain: the tide is rising. For brands with a strategic eye and a willingness to adapt, the Gulf represents one of the most compelling frontiers in global retail today.