Retail growth in Middle East and North Africa

The Middle East and North Africa (MENA) retail market is entering an era of transformation: Driven by digital innovation, investments in AI and technologies, rising consumer affluence and growing expectations for immersive omnichannel shopping experiences, the region is becoming one of the most dynamic retail landscapes in the world. From the Gulf’s affluent economies to North Africa’s expanding markets, MENA is not only shaping its own future but also influencing global retail strategies.

To harness this momentum, EuroShop Middle East will launch in 2026, offering retailers and the wider industry a much-needed platform for international exchange, collaboration, and knowledge-sharing in a region that is rapidly redefining the future of global retail.

The Middle East and North Africa (MENA) retail market is poised for significant growth, fueled by economic diversification, cultural shifts, and technological innovation. The region spans from high-income Gulf nations like the UAE and Saudi Arabia to developing economies such as Egypt and Morocco.

MENA consumers are digitally savvy, young, and affluent, with growing expectations for personalization and seamless digital experiences. Even after the pandemic, adoption of omni-channel and e-commerce platforms continues to rise, with online sales expected to grow. Social media also plays a pivotal role, significantly influencing purchasing decisions and driving regional demand. Additionally, the steady influx of international visitor – both for leisure and business – contributes to rising retail demand, as tourists increasingly engage with both luxury and digital shopping experiences during their stays.

The retail sector in the Gulf countries is undergoing a transformation, with major trends reshaping consumer habits, according to Consultancy-me:

• Quick Commerce: Meeting the demand for instant grocery and food delivery in urban centers.
• E-Commerce & E-Payments: Increasing digital integration for both food and non-food categories, supported by platforms like Apple Pay and STC Pay.
• Phygital Experiences: Combining physical and digital retail for immersive shopping, especially in fashion and electronics.

The Middle East, particularly the UAE and Saudi Arabia, is emerging as a global hotspot for luxury retail, finds the Savills Global Luxury Retail Outlook 2025. With the UAE welcoming a record inflow of high-net-worth individuals in 2024, international brands are turning their attention to cities like Dubai and Abu Dhabi. Strategic investments by global retailers and brands are further accelerating the region's transformation into a premier destination for high-end shopping and flagship developments. Responding to these trends, retail developers are increasingly prioritizing experiential and lifestyle-oriented concepts. Luxury stores are expanding in size and sophistication, as brands aim to enhance customer engagement through curated, immersive, and multi-sensory shopping environments.

Retailers in the Middle East are leading global peers in the adoption of AI technologies. A Honeywell survey reveals that 76% of large retailers have already developed AI capabilities, focusing on procurement, customer experience, and demand planning. Regional retailers show a greater appreciation for AI in procurement (+20% compared to global averages). Other technologies like augmented reality (AR), computer vision (CV), and optical character recognition (OCR) are also gaining traction, helping address inventory management and retail shrinkage.

This trend of investments into AI and smart technologies is confirmed by a report from Fortune Business Insights. According to their numbers, retail in the MENA region is increasingly shaped by the integration of artificial intelligence and virtual reality (VR), offering personalized experiences and operational efficiency. AI-driven platforms track customer behavior to suggest tailored products, while governments support tech-driven logistics. A notable example includes Saudi Arabia's 2023 partnership to develop 14 smart warehouses in Jeddah, signaling a commitment to modernizing inventory management.

As the MENA region continues to embrace digital transformation, experiential retail, and rising affluence, it stands at the forefront of global retail innovation – offering compelling opportunities for both established and emerging players in the years to come.

Against this backdrop, the launch of EuroShop Middle East, set to debut from October 26 to 28, 2026, comes at a pivotal moment for the industry. Hosting the trade fair in this dynamic region underscores its strategic importance as a retail growth engine and innovation hub. With cities like Dubai and Abu Dhabi already serving as magnets for international brands, high-net-worth individuals, and retail investors, the MENA region offers the perfect environment for fostering global business exchange, showcasing cutting-edge solutions, and shaping the future of retail across technology, design, and customer experience. Understanding MENA’s position within broader economic groupings further underscores why the region is attracting global attention and investment.

To understand the MENA region and its integration into wider economic groupings such as EMEA and IMEA, it is important to look at how these regional definitions shape market access, growth strategies, and investment opportunities for companies and investors alike.