Saudi Arabia’s retail sector is entering a more complex phase of growth, where opportunity is significant but execution is becoming more demanding.

In this interview with Gulf Business, Andy Veitch, MD and partner at Boston Consulting Group, shares insights from a recent BCG report on the kingdom’s retail landscape and what it will take for developers and investors to stay competitive.

A recent BCG report highlights significant headroom for retail development in Saudi Arabia, with retail space per capita still below global benchmarks. However, with major flagship openings and signs of oversupply in segments like luxury retail, how should developers and investors approach this opportunity while building winning propositions?

While Saudi Arabia offers clear headroom for retail expansion, the landscape is becoming increasingly competitive. Major flagship developments such as The Avenues, Westfield, and destinations like Diriyah and Qiddiya will compete for the same pool of consumer spending.

There are already signs of oversupply in certain segments, particularly luxury retail, where space is roughly double relative to spending compared to markets like Dubai and Kuwait. This suggests consumers are redistributing spend rather than increasing it, putting pressure on footfall per square metre and overall mall economics.

To remain competitive, developers need to move beyond traditional retail formats and focus on differentiated experiences. This includes integrating retail into mixed-use communities, strengthening food and beverage and entertainment offerings, and building community-driven engagement through events.

Future growth will also depend on expanding revenue streams beyond rent, including retail media, tenant services, loyalty ecosystems and omnichannel integration. At the same time, retailers are increasingly pushing for performance-linked rents tied to turnover and footfall, along with more flexible lease structures.

Ultimately, success will depend on creating propositions that expand overall consumer spending rather than simply redistributing it across an increasingly crowded market.

Experience-led retail is emerging as a key differentiator. Which innovations are proving most effective in driving footfall and dwell time in the region?

The most effective strategies focus on transforming retail into a broader lifestyle experience. Mixed-use integration, enhanced food and beverage offerings, and family entertainment are proving particularly effective in increasing dwell time and repeat visits.

Community-focused events are also playing a growing role, helping destinations build local relevance rather than relying solely on destination appeal, especially as newer developments intensify competition.

Retail media monetisation is now a major revenue stream. How are developers leveraging this, and what barriers exist?

Developers are increasingly generating revenue beyond rent through digital signage, dynamic parking, targeted marketing and tenant services that help drive store performance. Additional streams include non-endemic advertising, integrated marketplaces and product-searchable platforms.

However, scaling this model depends heavily on data. While loyalty apps and location-based data provide a foundation, limitations in data quality and depth remain a challenge. There are also barriers such as tenant reluctance to share data, privacy concerns and regulatory constraints.

A key issue is organisational readiness. Many operators underestimate that most of the effort lies in building capabilities, governance and operating models, rather than just deploying technology.

AI and data integration are cited as foundational for future retail competitiveness, yet readiness remains low. What steps should operators take now?

Operators should begin by identifying where AI can deliver tangible value, focusing on practical use cases such as property management and media revenue. Updating economic models to capture non-rent income streams is also essential.

A clear data strategy is critical, covering data acquisition, usage and monetisation, alongside governance and capability building. Partnerships will play an important role in accessing advanced AI expertise and scaling capabilities.

Equally important is talent, as attracting the right digital and prop-tech expertise will be central to executing these transformations.

Your latest retail report identifies three emerging retail archetypes. How should developers decide which to prioritise, and what trade-offs are involved?

Retail in the region is evolving around three models: community and convenience retail, experience-led destinations, and ecosystem platforms that extend into data, logistics and digital services.

While many developments will blend elements of these, success depends on having a clear primary focus. Assets that attempt to pursue multiple models without prioritisation often face diluted positioning and increased complexity.

The key decision is defining the role each asset plays within its market. Each approach involves trade-offs, and strong performance depends on aligning design, tenant mix and investment strategy with a clearly defined proposition.

As Anker Innovations scales beyond its core charging business into audio, smart home, and AI-enabled devices, the company is doubling down on product-first innovation while quietly building a broader ecosystem of connected services.

In this conversation, Jeffrey Liu, GM for the Middle East and Africa, lays out how Anker is navigating pricing pressures, rising competition, and shifting consumer expectations, while positioning the region as a key growth engine in its global strategy.

Anker has been expanding rapidly across audio, power, and smart home categories, while also pushing into software and ecosystem services. How do you prioritise investment between hardware innovation and developing recurring revenue streams like software, subscriptions, or connected services?

Hardware comes first for us. If the product itself is not solving a real need well, no service layer is going to fix that. So our priority is always product performance, reliability and ease of use.

Once that foundation is in place, software and connected services help us extend the experience, whether that is better device management, smarter security features or added convenience over time. We see those services as strengthening the product, not distracting from it.

The consumer electronics market is facing inflationary pressure and tightening consumer spend. How is Anker approaching pricing strategy and margin management to maintain growth without eroding brand value?

We are not interested in protecting margin by compromising the product experience. Our focus is on managing costs through scale, sourcing discipline and supply chain control, while keeping the quality bar where consumers expect it.

At the same time, we make sure the portfolio covers different price points, from everyday essentials to premium products. That gives consumers real choice without pushing the brand into discount-led positioning.

Anker’s portfolio now includes fast charging solutions, smart devices, and AI-enhanced products. What role does AI play in your product roadmap over the next 12-24 months, and how are you embedding it in ways that meaningfully improve the user experience?

AI only matters if it removes friction for the user. Over the next 12 to 24 months, we see the clearest opportunities in areas like home security, energy management and audio. That includes things like on-device recognition, smarter automation and more personalised performance, but always in ways that are useful and easy to understand. We are not adding AI for the sake of the label. It has to solve something real for the customer.

Competition in accessories and smart devices is intensifying. Where does Anker see the most defensible opportunities for market share gains, and how do you plan to differentiate beyond price?

We focus on out-engineering the competition where it matters most to users. Anker holds more fast-charging patents globally than almost any other brand – that’s a technical moat, backed by real R&D.

We also win on openness, where our ecosystem works seamlessly with most other wireless and digital protocols and platforms, including Qi charging, Matter, AppleHome Kit, Google Assistant and Amazon Alexa, giving users full freedom of choice. And in this region specifically, our privacy-first, on-device AI approach resonates strongly with consumers who value data control.

Anker has seen strong global growth, but regional dynamics vary widely. How are you adapting go-to-market strategies for key regions like the US, Europe, China, and the Middle East, and what are your expectations for revenue mix changes in 2026?

The Middle East is a strategic priority for Anker as it’s one of the fastest-growing opportunities we see globally. High smartphone penetration, a young tech-savvy population, and government-driven smart city investment all point in the same direction.

We are expanding the retail presence across the UAE and Saudi Arabia and all other MEA countries, building local partnerships, and timing launches around moments that matter — Ramadan, Eid, and key retail seasons. By 2026, we expect this region to represent a significantly larger share of our global revenue.

The UAE economy maintained its upward trajectory in the first months of 2026, supported by the strength of the financial and banking sector alongside rising foreign trade and investment indicators, according to official data and local and international reports.

The country has further reinforced its position as a model of stability and flexibility in navigating evolving global economic conditions, strengthening its sustainable leadership at both regional and global levels.

According to the Central Bank of the UAE (CBUAE), total banking assets increased by 1.1 per cent in February 2026 to exceed Dhs5.472tn, compared to Dhs5.414 tn in January.

Total credit rose by 1.2 per cent to Dhs2.63tn, supported by an increase of Dhs20.6bn in domestic credit. Bank deposits grew by 1.9 per cent to Dhs3.4tn, while resident deposits increased by 1.7 per cent to Dhs3.098tn.

The financial system continued to show strong stability. At the beginning of March, the capital adequacy ratio stood at 17 per cent, while the liquidity coverage ratio exceeded 146.6 per cent, remaining well above international regulatory thresholds.

International rating agencies reaffirmed the UAE’s sovereign strength. Moody’s maintained its Aa2 rating with a stable outlook following its review on 30 March 2026.

S&P Global Ratings also affirmed the UAE’s sovereign credit rating at AA/A-1+ for both local and foreign currencies, with a stable outlook.

S&P highlighted the UAE’s strong fiscal and economic resilience, supported by consolidated government net assets estimated at around 184 per cent of GDP in 2026, while government liquid assets stood at approximately 210 per cent of GDP.

On the trade front, the UAE continued to advance its foreign trade strategy under the comprehensive economic partnership agreements (CEPA) programme, which targets non-oil trade of Dhs4tn by 2031.

During the first quarter of 2026, agreements were signed with the Philippines, Nigeria, the Democratic Republic of the Congo and Gabon.

The country also entered the world’s top ten merchandise exporters for the first time, ranking ninth globally according to the World Trade Organisation.

UAE’s foreign trade reached Dhs6tn in 2025

Total foreign trade reached Dhs6tn in 2025, up 15 per cent compared to 2024. Trade in services exceeded Dhs1.14tn for the first time, while non-oil merchandise trade rose 27 per cent to Dhs3.8 tn.

In investment markets, Mubadala Investment Company reported assets reaching Dhs1.4tn, with a cumulative return exceeding 10 per cent over five- and ten-year periods.

ADNOC also entered the list of the world’s 100 most valuable brands, remaining the UAE’s most valuable brand for the eighth consecutive year. Its brand value rose 11 per cent to US$21.13 bn, reflecting growth of more than 350 per cent since 2017.

Dubai advanced to seventh place in the Global Financial Centres Index, marking its highest ranking to date and reinforcing its position as a leading global financial hub.

Corporate expansion trends also pointed upward, with the number of registered companies in the UAE exceeding 1.45m by the end of February.

Dubai Chamber of Commerce added 2,709 new companies in March 2026.

In Sharjah, the Economic Development Department recorded a 1 per cent increase in issued and renewed licences in Q12026 compared to the same period in 2025.

In Ajman, authorities issued 1,617 new licences and 8,777 renewed licences, with renewed licences rising 7 per cent year-on-year, signalling steady business activity.

On the debt capital markets side, the UAE dirham-denominated Treasury bonds (T-Bonds) auction in March 2026 raised Dhs1.1 bn.

Demand was strong from primary dealers for tranches maturing in September 2027 and January 2031, with total bids reaching Dhs4.85bn, around 4.4 times the issuance size.

The National Centre of Meteorology (NCM) has forecast a stretch of increasingly unsettled weather across the United Arab Emirates, with a rise in temperatures expected to give way to dust, stronger winds, and possible rainfall by midweek.

According to the NCM, the country will experience fair to partly cloudy skies at the start of the period, with temperatures climbing steadily through the weekend. This warming trend is being driven by a combination of a surface low-pressure system extending from the east and a high-pressure system from the west, supported by an upper-level ridge.

Warm and calm conditions to start

Saturday’s outlook indicates generally stable weather, with light to moderate winds and calm sea conditions. “Residents can expect fair to partly cloudy skies throughout the day, with temperatures on the rise,” the report noted.

Temperature ranges will vary across the country, with coastal and island areas expected to see highs between 27°C and 32°C, while internal regions may reach between 32°C and 37°C. Mountainous areas will remain cooler, with highs ranging from 18°C to 24°C, a WAM report said.

Humidity levels are forecast to climb as high as 85 percent in coastal areas, while inland regions will remain relatively dry. Winds, blowing from the northwest to southwest, are expected to range between 10 and 25 km/h, with occasional gusts reaching up to 35 km/h.

Sea conditions are projected to remain slight in both the Arabian Gulf and the Sea of Oman during this initial phase.

Clouds gather ahead of change

By Sunday, conditions are expected to remain largely unchanged, with continued fair to partly cloudy skies and light winds. However, forecasters say a transition will begin on Monday, as cloud cover increases over coastal areas and islands, particularly during the night.

“The period will begin with fair to partly cloudy skies and a significant rise in temperatures through the weekend,” the report stated, adding that this pattern will gradually give way to more variable conditions.

Winds are expected to strengthen slightly by Monday, with sea conditions in the Arabian Gulf becoming moderate.

Dust, wind and rain likely midweek

A more noticeable shift is forecast from Tuesday onward, when conditions are expected to turn dusty and increasingly cloudy. Blowing dust may reduce visibility in several areas, particularly in open regions.

“There is a chance of light rainfall over some coastal regions,” the report said, noting that temperatures are likely to decrease, especially along the western coast.

By Wednesday, unsettled conditions are expected to persist, with cloudy skies, continued dust, and a possibility of rainfall across both western and eastern parts of the country. Winds may freshen further, reaching speeds of up to 40 km/hr, contributing to rough sea conditions in the Arabian Gulf, while the Sea of Oman is expected to remain relatively calm.

Authorities have urged residents to remain cautious as conditions evolve over the coming days. “Residents are advised to stay updated on weather developments, especially during periods of strong winds and dust, which may affect visibility and outdoor activities,” the NCM said.

The forecast highlights the potential for rapidly changing conditions, particularly midweek, when outdoor plans and marine activities may be impacted.

The UAE ranks among the leading global hubs for artificial intelligence, supported by strong adoption, rising talent inflows and expanding institutional backing, according to the AI Index Report 2026 issued by Stanford University’s Institute for Human-Centered Artificial Intelligence (HAI).

The report said the UAE continues to outperform expectations in AI adoption relative to its GDP per capita, placing it alongside markets such as Singapore in global comparisons.

It added that more than 80 per cent of employees in the UAE regularly use AI tools at work, with reported high levels of trust in the technology.

The UAE also ranked among the fastest-growing countries in AI engineering skills, with technical capability expanding faster than general AI awareness, the report said.

On talent flows, AI expertise in the country more than doubled between 2019 and 2025, while net talent inflow stood at about 4.40 per 10,000 LinkedIn members, placing it among global leaders in attracting AI professionals.

AI-related job postings accounted for around 2.87 per cent of total listings in 2025, reflecting rising demand for AI-skilled workers across sectors.

UAE’s National AI Strategy 2031 is a key driver

The report highlighted the UAE’s push to embed AI into education through its National AI Strategy 2031, with AI education made mandatory across all school levels from the 2025-2026 academic year.

The curriculum includes fundamentals such as data, algorithms, innovation and ethics.

It also pointed to Abu Dhabi’s Technology Innovation Institute as a key regional research hub, citing its work in advanced AI systems including the Falcon model series.
The report concluded that the UAE continues to strengthen its position as a global centre for artificial intelligence, driven by adoption, policy integration and workforce development.

Read: UAE among top emerging economies in AI readiness: report