As the holy month of Ramadan approaches its final days in March 2026, economic data reveals an exceptional consumer season in Saudi Arabia. From retail to e-commerce, food industry to entertainment, Ramadan is reshaping the Saudi spending landscape with figures that reflect the scale of economic transformation underway in the Kingdom.

In a year marked by geopolitical tensions and elevated oil prices, Ramadan remains the strongest driver of domestic consumption in the Arab world’s largest economy. Estimates indicate that total consumer spending during the holy month could reach 65 billion Saudi riyals ($17.3 billion), a 12% increase over Ramadan 2025.

Consumer Spending: Record Numbers

Unprecedented Retail Growth

Saudi Arabia’s retail sector recorded 18% year-over-year growth during the first half of Ramadan 2026, according to data from the Saudi Central Bank (SAMA). Electronic payment transactions through point-of-sale terminals rose to 42.8 billion riyals in the first two weeks of the month, compared to 36.2 billion riyals in the same period of Ramadan 2025.

Food spending represents the largest share at 34% of total Ramadan expenditure, followed by clothing and fashion at 19%, then restaurants and cafes at 15%. Notably, the entertainment sector’s share jumped to 11% of total spending, compared to just 7% three years ago.

The Middle Class Drives Spending

Credit card data indicates that middle-income households (15,000-30,000 riyals monthly) are the most proportionally active spenders during Ramadan, with their spending rising 23% compared to regular months. This reflects the deep culture of generosity and family gatherings during the Ramadan season.

E-Commerce: A Ramadan Boom

Saudi e-commerce platforms delivered exceptional performance during Ramadan 2026. Noon announced a 45% increase in orders compared to last year’s Ramadan, while Amazon Saudi Arabia recorded a 38% rise. Top-demanded categories include electronics, household items, and Eid gifts.

Total e-commerce sales during Ramadan 2026 are estimated at 9.2 billion riyals ($2.45 billion), representing 14% of total Ramadan spending. This share rose from just 8% in Ramadan 2022, reflecting the rapid digital transformation in Saudi consumer behavior.

Delivery and Logistics

The delivery sector faced enormous pressure with surging demand. Delivery companies such as Mrsool, HungerStation, and Jahez recorded unprecedented peak times during post-Iftar hours. Average daily orders on food delivery platforms rose 62% compared to regular months, with a focus on large family meals.

Food and Beverage Sector

Price Increases and Seasonal Inflation

Despite government efforts to control prices, some essential food items recorded notable increases. Meat prices rose 8-12% during Ramadan 2026, while fruits and vegetables saw increases ranging from 5% to 15% depending on type and seasonality. Dates, the iconic Ramadan commodity, maintained relative price stability thanks to abundant domestic production exceeding 1.5 million tons annually.

Restaurants and Hospitality

The restaurant sector posted strong numbers with the growing culture of dining-out Iftars. Five-star hotels in Riyadh and Jeddah offer Iftar buffets priced between 250 and 600 riyals per person, with booking rates exceeding 90% on weekends. This pattern reflects a shift in Saudi consumer behavior toward social dining experiences.

Entertainment Sector: Riyadh Season Drives Growth

Ramadan 2026 coincides with the final weeks of Riyadh Season, creating a multiplier effect on entertainment spending. The General Entertainment Authority announced more than 120 Ramadan events across the Kingdom, including food festivals, night markets, and cultural performances.

Entertainment sector revenues during Ramadan 2026 are estimated at 3.8 billion riyals, a 25% increase over last year. Cinema chains recorded 31% growth in ticket sales during the first two weeks of the month, with strong demand for family-friendly shows during post-Taraweeh hours.

Umrah Traffic and Religious Tourism

Ramadan attracts millions of Umrah pilgrims to Makkah and Madinah. Ministry of Hajj and Umrah data indicates that more than 8.5 million Umrah pilgrims visited during Ramadan 2026, a 15% increase over the previous year. This influx injects billions of riyals into the economies of Makkah, Madinah, and surrounding regions.

Spending related to Umrah and religious tourism is estimated at 22 billion riyals during the Ramadan season, encompassing accommodation, transportation, shopping, and dining. Central area hotels in Makkah are recording occupancy rates approaching 100% during the last ten days of Ramadan.

Impact on the Saudi Stock Market

Historically, the Tadawul index (TASI) performs positively during Ramadan, driven by investor optimism and rising earnings in the retail and food sectors. In Ramadan 2026, the index posted a 2.8% return through mid-month, despite pressures from geopolitical tensions.

Major retail stocks delivered standout performance: Jarir rose 7.2%, eXtra gained 5.8%, and Al Othaim added 4.9%. Food sector stocks also benefited from the season, with Almarai rising 3.6% and Savola gaining 4.1%.

What’s After Ramadan? Preparing for Eid Al-Fitr

As Eid Al-Fitr approaches in late March or early April 2026, the Saudi economy is gearing up for a second spending wave. Historically, Eid spending represents 35-40% of total combined Ramadan spending, with focus on:

• Clothing and Fashion: Expected 40% increase compared to regular weeks
• Gifts and Eidiyah: A market estimated at 4.5 billion riyals
• Travel: Domestic and international flight bookings up 55%
• Restaurants: Doubled reservations at fine-dining establishments

Saudi Arabia’s Ramadan economy in 2026 confirms that structural shifts in consumption patterns are deepening year after year. E-commerce is growing, the entertainment sector is expanding, and spending is diversifying away from traditional patterns. These shifts represent real investment opportunities for investors who understand the dynamics of the Saudi market and its seasonal cycle.

Follow The Middle East Insider for in-depth analysis of the Eid economy and Q2 2026 trends in Saudi Arabia.