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Saudi Arabia defies global slump with projected 4 percent rise in 2026 consumer spending

33 percent of Saudis plan to spend more in 2026 while 38 percent expect no change.
Saudi Arabia defies global slump with projected 4 percent rise in 2026 consumer spending
Saudi consumers plan to increase spend on groceries (15 percent), non‑food retail (12 percent) and dining out (10 percent)

Consumers in Saudi Arabia intend to spend more in 2026, showing a +4 percentage-point net increase in spending intentions. This stands in sharp contrast to a global net contraction of -18 percentage points, according to the latest Global Consumer Outlook from the consulting firm AlixPartners. The study, which surveyed over 13,000 people across nine countries, indicates that 38 percent of Saudi consumers expect their spending to remain stable, while 33 percent plan to increase it. This optimism is particularly strong among higher-income groups and consumers aged 18–44, marking the third consecutive year of stable sentiment fueled by the country’s economic transformation.

Groceries lead priority spending

Additional spending is being prioritized for essentials and lifestyle categories, with groceries (15 percent) at the top, followed by clothing and electronics (12 percent), and dining out (10 percent). Meanwhile, the appetite for saving has moderated slightly. Karl Nader of AlixPartners attributes this confidence to strong economic fundamentals, including inflation maintained at approximately 2 percent, record-low unemployment, and increased household incomes resulting from rising female workforce participation. These factors, supported by Vision 2030 initiatives, have created a growth-stimulating environment where consumers are more disciplined and selective rather than cautious.

Experience trumps lowest price

Competition in the Saudi market is increasingly driven by experience and value rather than price alone. While 37 percent of consumers might switch brands for better pricing, a significant portion prioritizes better service (29 percent) and wider choices (24 percent). Loyalty remains thin, with only 4 percent of respondents stating they would not switch providers, which underscores the intense competitive landscape. Businesses are finding that market maturity now rewards those who focus on specific relevance and high-quality implementation.

Read more: Why 94 percent of Saudi CEOs are confident in 2026 economic growth, 80 percent support AI adoption

74 percent prioritize digital tools

Health and conscious consumption are becoming central to purchasing decisions. Half of Saudi consumers are motivated by offerings that promote wellness and healthy aging, while 44 percent are drawn to brands that support conscious consumption. In the digital realm, 74 percent of consumers view digital tools as more important than last year, yet there remains a strong desire for human interaction. This is especially evident in grocery and clothing shopping, where roughly 40 percent of consumers still value in-person engagement. Interest in AI-powered shopping assistants and virtual trainers also continues to grow, reflecting a tech-savvy consumer base.

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