Kearney ME Survey: KSA consumer spending power remains strong despite concerns about the macro-economic environment

Kearney ME Survey: KSA consumer spending power remains strong despite concerns about the macro-economic environment

- While price increases have been noted across most retail categories, 11% of consumers have reported an increase in spending compared to 2021

- Despite concerns, KSA consumers do not expect to reduce their spending over the next six months

Dubai, KSA – Consumer spending power in the Kingdom of Saudi Arabia remains strong despite concerns about the global macro-economic environment. This is according to local research by leading management consulting firm, Kearney, exploring consumer sentiment and purchasing habits. 79% of those surveyed highlighted concerns about global market volatility and rising inflation, and 72% noted an increase in the prices of goods purchased over the last three months.

Price increases were felt most in food and beverage (76%), restaurants and hotels (67%), clothing and footwear (63%), electronics (61%) and transport including gas prices (57%). However, despite concerns and noticeable price hikes, consumers do not expect their spending to be impacted with almost half (46%) planning on making a major household purchase (SAR 1,000+) in the next six months.

“The Kingdom’s progress over the past five years has contributed greatly in further strengthening its economic foundations. Businesses and individuals have benefitted from favorable policy changes which have given consumers’ confidence in their purchasing power, regardless