Retailing amid regulation and religion: The unique cultural challenges and opportunities facing market ventures in Saudi Arabia

Despite Saudi Arabia’s significant growth potential, integrative examinations of its retail industry, especially including its cultural background, are quite limited. The purpose of this exploratory paper is to identify opportunities and challenges that are unique to Saudi Arabia’s retail industries. As the religious Mecca for Islam, Saudi Arabia presents opportunities and challenges that are not typically observed in other emerging markets. The study concludes that the country offers market opportunities typically observed in other emerging markets, including increases in disposable income, an abundant young population and internet penetration rate. Market opportunities unique to Saudi Arabia include religious tourism and the associated retail space increase. Identified challenges that were similar to those of other emerging markets include the country’s lack of logistics and infrastructure for online sales, deficiency of clear regulations and ineffective bureaucracy. Challenges unique to Saudi Arabia were ascribed to its strict observance of cultural and religious customs and its new labour policy of Saudisation (Nitaqat). Such identified opportunities and challenges may facilitate understanding of the level of standardisation and adaptation recommended in the Middle East.