What: BCG's April 2026 survey of 1,895 consumers in Saudi Arabia finds high optimism about the economy and personal lives, but savings come first and value for money drives purchases.

Why it is important: Saudi consumers research online but 85% still call a physical store important or essential to their decision, so retailers need to connect digital discovery with in-store purchase rather than push shoppers online.

Saudi consumers feel more positive than their European peers. An average of 79% say they feel good across eight dimensions, against 35% across the European markets surveyed, even though inflation and energy prices are the leading concerns. Over the next six months, consumers expect income, savings and spending to rise, though much of the expected spending growth reflects higher prices rather than greater volumes. Given extra income, saving ranks ahead of every spending category, and 66% would sacrifice spending today to save more.

Purchases follow a practical hierarchy led by value for money, functionality and price. Only 31% of purchases involve a brand chosen in advance. Two-thirds of consumers say they seek local brands, yet local production ranks last among purchase criteria. Only 14% will pay a premium for sustainable options, while 86% expect them to cost the same or less.

Discovery is digital but purchase remains physical: online is the main inspiration channel for 28% to 48% of consumers by category, against 14% to 21% for purchase. More than 50% of Saudi luxury spend goes abroad, drawn by assortment, service and price. BCG notes the survey measures stated intentions, so actual behaviour may be more moderate.

IADS Notes: BCG's European survey from BCG, June 2025 found 54% of European consumers pessimistic about their home economy, with household essentials the only category showing positive net spending growth. The selectivity BCG reports in Saudi Arabia also shows up in luxury: BCG, July 2026 found that 70% of consumers walked away from purchases they considered unjustified. On luxury spending leaving the Kingdom, WWD, June 2024 reported Chalhoub Group's view that a 15% VAT rate, against about 5% in neighbouring countries, and superior shopping facilities elsewhere make Saudi Arabia less appealing for luxury shopping. The expectation of sustainability at parity has a UK precedent: Retail Insight Network, September 2024 reported that 83.4% of Gen Z and 81.8% of millennials would buy more sustainable health and beauty products if they were cheaper. On discovery and purchase, Retail Insight Network, July 2026 describes stores as central to omnichannel journeys, supporting online research, in-store advice and click-and-collect.

The Saudi consumer in 2026: confident, but disciplined