More than half of Saudi consumers are bullish about the economy, with 56% of 3.5k survey respondents showing optimism, and only 17% expressing pessimism, according to a 2024 survey (pdf) by US management consulting firm Oliver Wyman.

Half of the respondents reported increasing confidence in the economy, while 19% said their confidence had declined. Younger consumers, aged 18 to 29, were less optimistic than the general population, with only 49% of them expressing optimism.

Consumer spending is rising faster than income growth, with 41% of respondents reporting a decline in their savings. Consequently, consumers are inclined to save more, with 39% planning to cut back on food, 38% planning to spend less on entertainment and home furnishings, and 37% aiming to buy fewer electronics.

When it comes to buying decisions, price is the main factor: Price emerged as the top factor across most categories, led by entertainment (cited by 33% of respondents), followed by groceries (31%), dining out (29%), home and furniture (28%), and electronics (25%). Quality followed closely, particularly in groceries (according to 34% of respondents) and electronics and dining out (27% each), while promotion of discounts came close behind, especially in electronics, fashion, and entertainment. Brand reputation, convenience, and customer service ranked lower in importance.

Brick and mortar stores are still Saudis’ top choice, especially when it comes to groceries (66%), home and furniture (47%), dining out (46%), and fashion (37%). Online shopping, however, leads in electronics, with 45% of respondents preferring it, followed by fashion (44%) and entertainment (34%).

Some market wisdom: To help retailers stay competitive, the report recommends blending affordability and quality through smarter assortments, off-price models, targeted promotions, and private labels. A broader strategy should also include cost-efficient operations, reinvestment in personalization and tech upgrades, and the use of AI and automation.

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