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RIYADH: Saudi Arabia’s consumer retail spending is projected to experience significant growth in the coming years, with e-commerce expected to account for 46 percent of the overall retail sector by 2030, according to a Visa executive.

Speaking to Arab News at the Retail Leaders Circle in Riyadh on Feb. 4, Ali Bailoun, regional general manager of Visa, highlighted that Saudi Arabia currently represents 44 percent of the total retail spending in the Gulf Cooperation Council region.

Bailoun’s remarks reflect Saudi Arabia’s ongoing shift toward a more diversified, digitally-driven economy, where e-commerce plays a pivotal role.

E-commerce in Saudi Arabia

Earlier this month, data from the Ministry of Commerce revealed that Saudi Arabia’s e-commerce sector continues to show strong growth. As of the fourth quarter of 2024, the Kingdom now has 40,953 registered e-commerce businesses, marking a 10 percent year-on-year increase.

“In line with Vision 2030, we see Saudi growing or doubling the payment volume by 2030. Even if you look at e-commerce, we expect e-commerce to grow to 46 percent by 2030. So, we see growth and we see potential. And you can see this on the ground,” said Bailoun. 

He added: “Today, you can go anywhere in Saudi Arabia, and you can use your card and make any payments in any retail shop.” 

Bailoun noted that e-commerce in Saudi Arabia currently accounts for 29 percent of all consumer retail payments in 2024, and is projected to rise to 46 percent by the end of this decade.

He also highlighted that cross-border transactions represent 15 percent of consumer retail payments in Saudi Arabia for 2024.

Supporting these insights, a September 2024 report from Saudi Arabia’s Small and Medium Enterprises Authority indicated that the Kingdom’s retail sector is poised to double between 2020 and 2025, with an annual compound growth rate of 15 percent.

Furthermore, a December report from Statista projected that credit card penetration in Saudi Arabia will reach 46.83 percent, continuing a trend of growth observed over the past 15 years.

Technological advancements

Bailoun suggested that data should be used wisely by retailers to enhance the growth of cross-border business. 

“My recommendation always to retailers is data. You need to find a way to collect and optimize your data and then customize these solutions,” said Bailoun. 

He added: “You need to work with data, not only yourself. You need to look at the market. You need to look at the region and start building up on the data you have to customize the solutions or build up these solutions.” 

The Visa official further said that the implementation of advanced technologies like Artificial Intelligence is also crucial to elevate the growth of both physical and e-commerce retail sectors. 

“Today when you look at social media, sometimes you like something and you read more about it. Then it becomes it pops up in different areas. It is all AI,” he said. 

A recent report by market research firm IMARC echoed similar sentiments, emphasizing the growing role of technology in shaping the e-commerce retail sector.

According to the report, the increasing use of data analytics and AI algorithms to personalize shopping experiences is a key driver of the market. “The expanding use of data to recommend products based on a user’s browsing and purchase history is making it easier for customers to discover items they may be interested in,” the report stated.

IMARC also highlighted that Saudi Arabia’s e-commerce market was valued at $22.9 billion in 2024, with projections indicating it will reach $708.7 billion by 2033, reflecting a compound annual growth rate of 12.8 percent.

Visa’s Saudi operations

He also talked about Visa’s close cooperation with STC Bank, which recently received a non-objection certificate from the Saudi Central Bank to commence its banking operations in the Kingdom. 

“We are a payment technology network. We work and we enable all players in the ecosystem; be it a traditional bank, digital bank, a wallet, a merchant, or maybe a telco provider. We work and we operate and enable the whole ecosystem,” said Bailoun. 

He added: “STC was a wallet. They’ve converted to become a digital bank. We’ve been working with them when they were a wallet, we will continue working with them when they become a bank again. We enable them to do payment credentials, which means they can issue a card under the Visa brand, and they go and do payments anywhere and everywhere in the world.” 

Calling Saudi Arabia one of the strategic markets of Visa, Bailoun also outlined some of the major initiatives taken by the payment card services company in the Kingdom. 

In October 2024, Visa opened its fifth innovation center globally in Riyadh in the King Abdullah Financial District. 

“Today, if you have a problem statement. If you have anything you want to solve or cater for, we sit down together with many partners, we co-create and come up with a solution in that innovation center,” said Bailoun. 

He added: “In addition, we have some best practices and some experiences that we’ve taken from around the world; be it on the gaming, on AI or gen AI. We have something on urbanization. In the innovation center, we have also added something that will cater for the new cities the likes of Neom, the likes of Qiddiyah.” 

Bailoun also detailed Visa’s major partnerships in the Kingdom with retailers including Cenomi Retail and Marriot Bonvoy. 

“With Cenomi, we have signed a deal to work on two parts; the loyalty platform and we have also worked on something called co-brand. So, Cenomi will have a co-brand credit card. The more you spend on their card, the more loyalty you get, and then you can redeem within the group,” said the Visa official. 

He added: “Marriott Bonvoy is a group of hotels. It’s a loyalty platform, one of the big platforms globally. The card is issued in partnership with Visa and Bonvoy. So, the more you spend, the more you will get points to redeem in Bonvoy hotels.” 

RIYADH: Saudi developer Cenomi Centers is considering additional financing options to cover the $1.3 billion cost of its two flagship malls, Jawharat Riyadh and Jawharat Jeddah.

In an interview with Arab News during the ongoing Retail Leaders Circle Global Forum 2025 in Riyadh, the company’s Chief Operating Officer, Bruno Wehbe, shared insights into Cenomi’s financial strategy and the ambitious vision driving the projects.

“We are looking at all options to fund the massive growth that’s coming around the corner,” Wehbe stated. “Our CFO is looking at a multitude of sources. These include raising financing again, it could be sukuk, it could be something else.”

The COO also pointed out that potential funding sources include the sale of non-core assets, such as unused land, a move that has already been announced as part of a broader strategy.

He highlighted that internal operations will contribute to financing growth capital expenditures, stressing that the approach is well-thought-out and strategic.

The Jawharat Riyadh and Jawharat Jeddah projects are set to be transformative for Saudi Arabia’s retail and lifestyle landscape.

“Together, excluding the land, they will cost upward of SR5 billion ($1.3 billion). They are expected to rank among the top one to three in their respective cities and the top five in MENA. This is the benchmark we are aiming for,” Wehbe said.

Jawharat Jeddah is set to open at the end of 2025, with Jawharat Riyadh following in early 2026. These developments are not just aiming to be traditional malls; they are being designed to establish themselves as premier lifestyle destinations.

Jawharat Riyadh, in particular, will stand as one of the region’s largest retail complexes, covering 500,000 sq. meters of land—roughly the size of 70 football fields. The mall will offer 220,000 sq. meters dedicated to retail, office space, entertainment, and food and beverage experiences.

“We are breaking this closed concrete box design that you see across Saudi Arabia, including some Cenomi Centers malls, the old ones in particular,” Wehbe noted. “For example, the Jawharat Riyadh will have almost 27,000 sq. meters of skylight. It’s probably the largest skylight in the Middle East for a lifestyle destination.”

Cenomi Centers is also aiming to set a new benchmark in sustainability. “Sustainability is at the heart of what we do. We’re really aiming to be the first gold LEED-certified mall in the Kingdom, at least in Jawharat Jeddah and then Jawharat Riyadh. We’re aiming for platinum, but we’re promising LEED,” he said.

The tenant mix is a key component of the strategy, according to Wehbe. “What we call ‘magic’ is the mix. You can build the best asset, achieve the highest sustainability standards, and offer the best omnichannel experience. If you don’t have the right mix—meaning the right brands, the right tenants, the right experiences—you won’t have a successful asset,” he explained.

The space allocation within the malls reflects this vision. “We’re planning an additional 65,000 sq. meters of prime office space at Jawharat Riyadh,” Wehbe added.

Phase 2 of the developments will also include an arena, branded residences, and several four- and five-star hotels.

The developer is also focused on introducing unique offerings to the Saudi market. “We are introducing more than 15 to 20 new brands and concepts that will make their debut in Saudi Arabia at Jawharat Riyadh. You’ve never seen them here before,” Wehbe shared.

He continued: “You’re talking about first-of-their-kind concepts created by young Saudi designers and local commissions. We’re also bringing in media studios with broadcast facilities inside Jawharat Riyadh.”

Wehbe also emphasized the company’s commitment to strengthening its financial position and improving its credit rating. “The sukuk we raised last year had multiple purposes. Part of it was used to stabilize and strengthen the capital structure, and part of it went towards improving the credit rating. We had a BB- rating with a stable outlook,” he said.

He added: “Ultimately, our goal is to improve our rating. I personally believe that as soon as growth takes shape—through these two Jawharats and other upcoming announcements—we’ll see progress.”

The company expects significant financial returns from these investments. “Jawharat Riyadh and Jawharat Jeddah will contribute more than 50 percent of our existing EBITDA (earnings before interest, taxes, depreciation, and amortization),” Wehbe stated.

The two malls are projected to generate SR650 million in steady-state EBITDA within about two years, which will account for approximately 50 percent of the current EBITDA base.

“The market will only improve. It’s one of the few bright spots of this region, if not the world,” Wehbe said, highlighting the broader market context and emphasizing how Cenomi Centers’ growth is intricately intertwined with Saudi Arabia’s economic trajectory.

Reflecting on the company’s recent performance, Wehbe described 2024 as a year of record achievements. “We were on track to achieve more than 130 million visits across our 22 centers. 130 million, that’s almost roughly four times the Saudi population. Massive. I don’t think that’s matched anywhere in the Kingdom. We also had record occupancy rates,” he remarked.

The scale of these numbers paints a captivating portrait of the company’s success, a vibrant mosaic of growth against a backdrop of a dynamic, ever-evolving retail landscape.

Looking to the future, Cenomi Centers is determined to deliver on its promises and further elevate investor confidence.

“Investors will finally get the confidence that we are basically executing on what we promised them, and that is the materialization of the promise of the two Jawharats and beyond,” Wehbe concluded.

As the company continues to orchestrate its ambitious vision, these developments beckon as not just destinations, but as a reimagined experience in the heart of a verdant, flourishing market—one that is certainly set to transcend expectations.