The Ramadan Boom in Saudi Arabia
Ramadan is a significant and sacred month for Muslims worldwide, including those in Saudi Arabia. During this time, Muslims observe fasting, increased spiritual reflection and worship, and community gatherings. As a result, this month presents a unique opportunity for businesses to thrive in Saudi Arabia.
The Rise of Seasonal Businesses
During the month of Ramadan in Saudi Arabia, many temporary businesses emerge, particularly in the food and beverage sector, making it a lucrative opportunity for entrepreneurs. The stalls and trucks selling food items, including balila, fried liver, kunafa, sobia, and coffee, are a common sight all over Jeddah during the holy month, providing seasonal employment and extra income for traders due to high demand.
According to experts, Ramadan brings about economic growth in all sectors allowing businesses to take advantage of the momentum during this period. The month of Ramadan is typically characterized by an increase in consumer spending and business activity. The food and retail sectors tend to experience the most significant growth, with many Saudis preferring to shop for clothing, electronics, and other household items during this time. A survey conducted by Toluna, a leading provider of market research and consumer insights, revealed that consumer shopping intention in the Saudi market grew 44 percent across all sectors during Ramadan 2023 compared to the comparative period in 2022. For instance, an average balila stall earns an average daily income of over 500 riyals ($130), which increases on weekends due to the higher number of visitors. The growth of temporary businesses during Ramadan is an important aspect of the Kingdom's economy, and it creates many opportunities for entrepreneurs and small businesses.
Growth of E-Commerce
In addition to the increased food and retail sales, there has been a noticeable growth of e-commerce. This trend has been driven by the increasing popularity of online shopping in Saudi Arabia, which has led to the emergence of a thriving e-commerce sector. Online shopping platforms such as Noon, Souq, and Amazon have seen a significant surge in sales during the holy month, with many retailers offering exclusive discounts and promotions to attract customers. The growth of e-commerce during Ramadan has encouraged many young Saudis to start their own online businesses. With the availability of e-commerce platforms and the growing demand for online shopping, it has become easier for individuals to start their own businesses from the comfort of their homes. This has led to the emergence of a new wave of entrepreneurs who are using the holy month to kick-start their businesses and take advantage of the increased consumer demand.
The Saudi government has recognized the potential of e-commerce in boosting the country's economy and has taken several steps to support the sector. These initiatives include the introduction of laws to protect consumers and promote online transactions, as well as the establishment of dedicated e-commerce zones to encourage investment in the sector. These efforts have helped to create a more supportive environment for entrepreneurs and have contributed to the growth of e-commerce in Saudi Arabia.
The Pilgrimage Boom
Furthermore, during the holy month of Ramadan in 2023, the hotel and accommodation sector in Makkah saw a significant surge. According to data released by the Hajj and Umrah Committee at Makkah Chamber, the hotel occupancy rate reached 80%, the highest in three years. The surge in hotel bookings during Ramadan highlights the importance of this month for Muslims worldwide, and the crucial role it plays in the hospitality and tourism sectors in Saudi Arabia.
Overall, the Ramadan season of 2023 in Saudi Arabia witnessed a significant surge in e-commerce and entrepreneurial activities, particularly in the food and beverage sector. The increase in online shopping and temporary businesses has provided opportunities for small businesses and entrepreneurs to thrive during this period. Additionally, the hotel and accommodation sector in Makkah saw a surge in occupancy rates during Ramadan, indicating the importance of this season for both spiritual and economic activities in Saudi Arabia.