RIYADH: An increase in non-cash transactions has helped Saudi Arabia rise nine places to third in the Global Retail Development Index. The GRDI leverages a comprehensive set of criteria, including economic health, consumer wealth, and regulatory framework, to gauge the retail potential of 35 to 40 emerging economies, according to a statement. The 2023 edition of the bi-yearly survey findings, launched by the US consulting firm, mirrors the upward trajectory of global retail development in the Middle East and North Africa region. They also cement the country’s strategic pivot away from oil dependency, which currently accounts for approximately 40 percent of its gross domestic product, and the establishment of a favorable business climate. “The MENA region, and notably the Kingdom of Saudi Arabia, are at the forefront of retail’s next wave of growth,” said Debashish Mukherjee, partner at Kearney Middle East and Africa and Consumer and Retail Practice Lead. “The 2023 GRDI illustrates how these markets are redefining the retail ecosystem with strategic digital adoption and consumer-centric approaches,” Mukherjee added. Mukherjee also stressed that the rise in this year’s GRDI is a clear indicator of its dynamic retail environment as well as its strategic initiatives to foster a competitive and diverse economic landscape. Moreover, the report attributed the Kingdom’s climb in the index to non-cash retail transactions surging from 16 percent in 2016 to 62 percent in 2022, aiming for 70 percent by 2030. An additional reason for the jump was the country’s growth in the employment of Saudi nationals in high-skilled jobs and doubling female workforce participation, exceeding Vision 2030 targets. On top of that, the growing popularity and adoption of buy now pay later services and the significant increases in investment deals and licenses in 2022 aided the Kingdom’s jump in the index. Other reasons entailed digital and artificial intelligence integration within the Saudi consumer market, the entry of international brands, and the expansion of entertainment and lifestyle sectors. The GRDI acts as a guide for retailers looking to navigate the complexities and capitalize on the prospects within these emerging markets.