TGM RESEARCH GUIDE: BEST PRACTICES

How to conduct market research projects in Saudi Arabia?

A guideline on how to conduct successful market research in Saudi Arabia, including key strategies, best practices, and cultural, regulation and ethical considerations.

Written by

Ngoc Le

She was a market research writer and long-time contributor to TGM. Her insights focus on making market data accessible and actionable for global audiences.

As Saudi Arabia rapidly transforms under Vision 2030, it is becoming a prime destination for businesses. With a young, tech-savvy population and a GDP exceeding $1 trillion, the Kingdom offers extensive opportunities in technology, tourism, FMCG, and automotive sectors.

In such a dynamic landscape, understanding the complex interplay of economic growth and cultural values is essential for success. The Kingdom's Islamic traditions and recent regulatory changes shape consumer behavior and research practices. This is where market research plays a critical role—providing the insights businesses need to take advantage of its huge potential. This guide provides key strategies and best practices for effective market research in Saudi Arabia, helping you gather valuable data, understand local market dynamics, and make informed decisions in this promising market.

Why Saudi Arabia is An Attractive Market for Research?

Saudi Arabia, the largest economy in the Arab world and the 19th largest globally, boasts a population of over 36 million (World Bank, 2023). With a GDP of $1.067 trillion in 2023, the Kingdom’s economy is one of the strongest in the Middle East. The median age of 31 (UN, 2024) indicates a relatively young population, which presents a significant opportunity for businesses looking to tap into growing consumer markets driven by youthful, tech-savvy demographics.

KSA’s economic landscape is undergoing rapid transformation due to a series of diversification efforts under Vision 2030. While oil remains central, other sectors such as technology, tourism, FMCG, and automotive are experiencing substantial growth. Saudi Arabia is now one of the largest automotive markets in the Middle East and ranks among the top 20 globally (EqualOcean, 2024). Additionally, KSA had the highest consumer spending in the MENA region, with a private consumption expenditure of $109.180 billion in March 2024 (CEIC, 2024). The tourism sector, which contributed SAR 444.3 billion to the GDP in 2023, further solidifies the Kingdom’s attractiveness as a business destination (WTTC, 2024).

Why KSA is An Attractive Market for Research

Saudi Arabia’s fast-growing economy and strong potential make it essential to conduct thorough market research. Alongside economic factors, cultural elements rooted in Islamic and Arabic traditions greatly influence how people behave as consumers and how businesses operate. Language, religious values, and social customs such as hospitality ("karam") and the importance of social networks ("wasta") play a central role in shaping market dynamics. These elements directly impact consumer preferences, particularly in sectors like halal food, modest fashion, and ethical consumption. Businesses aiming to enter the Saudi market must understand these cultural nuances to craft effective marketing strategies and build long-lasting relationships with Saudi consumers.

The unique combination of demographic vitality, economic diversification, and cultural richness creates a dynamic environment for market research that nowhere has. However, success in the Saudi market depends on adopting a culturally aware, data-driven strategy. In this context, thorough market research allows you to effectively tap into the Kingdom's growing markets, thrive in a promising yet complex environment, and respect its rich cultural framework.

What is the Current State of Digital in KSA?

Saudi Arabia is experiencing a digital revolution, with impressive rates of internet and mobile adoption. The internet penetration rate of the Kingdom stood at 100% (World Bank, 2023). This universal internet access is complemented by a mobile connection rate of 124% and a mobile ownership rate of 77.19%. These statistics paint a picture of a highly connected society, where digital technologies are deeply integrated into daily life and business operations.

The Kingdom's digital landscape is surpassing global trends, reflecting the government's commitment to digital transformation as part of its Vision 2030 plan. This digital saturation is driving innovation across sectors, from e-commerce and fintech to healthcare and education. For businesses and market researchers, this presents unparalleled opportunities to connect with Saudi consumers. It opens new pathways for real-time data collection and insights into consumer behavior. The high mobile connection rate opens new avenues for mobile-first research methodologies and targeted marketing strategies.

Looking ahead, the next five years will be crucial for market research in Saudi Arabia's digital context. As the Kingdom continues to invest in emerging technologies, the volume and variety of data available to researchers will expand exponentially. This will necessitate new approaches to data analysis and interpretation, with a focus on real-time insights and predictive analytics. The future of market research in Saudi Arabia will likely see a convergence of traditional methods with cutting-edge digital tools, offering a more nuanced understanding of the market. Researchers who can effectively navigate this data-rich environment will be best positioned to provide valuable insights into one of the Middle East's most dynamic economies.

Why Choose Online Surveys for Market Research in KSA?

1. Alignment with Digital Trends

In With a high internet penetration rate and extensive mobile usage in Saudi Arabia, online surveys are well-suited to the country's growing digital landscape. This method complements the digital habits of the population, making data collection more relevant and effective for today's tech-savvy consumers.

2. Anonymity and Personal Comfort

In Saudi Arabia, where privacy and discretion are highly valued, online surveys serve the function of ensuring anonymity. This allows respondents to feel secure when sharing opinions, particularly on sensitive topics. By participating from the comfort of their own homes, individuals are more likely to provide honest and unfiltered responses, free from social or political pressures.

Saudi culture emphasizes respect for social hierarchies and authority figures. Participants might be hesitant to provide honest feedback in person if it involves criticizing someone of higher status or discussing sensitive topics that could be perceived as controversial.

3. Access to Hard-to-Reach Audiences

Saudi Arabia's diverse geography, ranging from bustling urban centers to remote rural areas, can complicate traditional survey methods. Online surveys bridge this gap by reaching participants across the entire country, including hard-to-access regions. This capability ensures a more comprehensive and representative sample, encompassing both metropolitan areas like Riyadh and Jeddah and more isolated locations.

4. Flexibility Around Religious Observances

Online surveys can be completed at the respondent's convenience, accommodating their religious practices and daily routines. This flexibility ensures higher participation rates and more accurate data collection.

Religious practices, such as prayer times and fasting during Ramadan, can affect the availability and willingness of participants for offline research. Scheduling interviews or focus groups at these times can be challenging and may lead to lower participation rates.

5. Faster Data Collection

Online surveys significantly speed up the data collection process compared to offline methods. Automated data processing allows researchers to obtain preliminary results quickly—often within hours—rather than waiting weeks or months for traditional fieldwork. This rapid turnaround is particularly advantageous for gaining timely insights in Saudi Arabia's fast-paced market.

6. Improved Data Accuracy

Online surveys enhance data accuracy through automated validation checks and respondent control over their answers. This approach minimizes the likelihood of errors and inconsistencies, resulting in high-quality data.

By leveraging TGM's online panel, researchers can tap into the benefits of online surveys while ensuring representative and reliable data collection in KSA's unique market environment.

To learn more about the composition and capabilities of our KSA online panel, download our comprehensive panel book. Get access to demographics, recruitment methods, and quality assurance processes to support your research decisions.

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Best Practices for Running a Successful Online Survey in Saudi Arabia

To conduct effective online surveys in Saudi Arabia, it requires careful attention to the unique cultural, technological, and social aspects of the Kingdom. Here are key practices to ensure your research is both respectful and effective:

Optimize Language and Layout: Ensure your survey is available in Modern Standard Arabic and Saudi dialects. Design all elements to flow from right to left, with clear visual separation in bilingual surveys. Consider including English versions for the expatriate population.
Acknowledge Social Hierarchy: Recognize the importance of social status in Saudi culture. Frame questions in a way that respects social hierarchy and allows respondents to maintain their dignity. For example, when asking about decision-making, include options that reflect family or collective decisions rather than just individual choices.
Incorporate Islamic Values: Align survey content with Islamic principles. Use Islamic greetings like "Assalamu Alaikum" in introductions. When asking about lifestyle choices or preferences, include options that reflect Islamic values and practices. Avoid scheduling surveys during prayer times, on Fridays, or during Ramadan without appropriate adjustments.
Use Appropriate Imagery: If including images, ensure they are culturally appropriate and adhere to Islamic principles. Avoid images of alcohol, pork, or immodestly dressed individuals. Consider using traditional Saudi or Islamic motifs in the survey layout to create a familiar and welcoming feel.
Address Vision 2030 Themes: Where relevant, incorporate themes related to Saudi Arabia's Vision 2030 in your surveys. This could include questions about attitudes towards economic diversification, tourism, or women's increasing participation in the workforce.
Mobile-First Design: With Saudi Arabia's high smartphone penetration, prioritize mobile-friendly survey designs. Use shorter questions and visual elements that render well on mobile screens.
Consider Expatriate Population: With a significant expatriate population, especially in major cities, design surveys that can capture insights from both Saudi nationals and foreign residents when relevant.
Offer Culturally Appropriate Incentives: Incentives like e-vouchers for popular local retailers or options to donate to approved charities can motivate participation. Ensure the incentives align with Islamic principles and are simple to redeem.
Incorporate Ethical Safeguards: Given the Kingdom's social and political context, ensuring participant safety is essential. Allow anonymity and avoid asking questions that could be perceived as sensitive or controversial. Use encrypted survey tools to protect data integrity and participant identity.
Set Clear Quotas for Demographic Representation: To get a comprehensive view of the Saudi market, set quotas based on key demographics like age, gender, region, and nationality (Saudi citizens vs. expatriates). This helps ensure your data is nationally representative and captures the diversity of the Kingdom's population.
Optimize Sample Coverage: When designing your survey, consider how to balance data from smaller regions with major cities. For national accuracy, a large sample size is needed. Combining smaller regions with larger ones, such as merging data from Jizan with Makkah, Al-Baha with Riyadh, can help manage costs and time while maintaining reliability. If your focus primarily is on major cities, concentrating on urban areas like Riyadh, Jeddah, and Dammam may be sufficient.
Partner with Experts: Collaborate with market research firms or consultants who understand the nuances of local culture and can provide insights into regional differences within the Kingdom. They can offer valuable guidance on navigating cultural sensitivities and ensuring compliance with local regulations.

Regulatory and Ethical Considerations in Market Research

Market research in Saudi Arabia, like in other countries, requires careful attention to specific rules and ethical issues. Saudi Arabia has a new data protection law called the Personal Data Protection Law (PDPL), which is similar to Europe's GDPR. Following this law and international data protection standards is very important. Being clear about how data is used, getting permission from participants, and understanding local rules and cultural sensitivities are key to doing ethical research in Saudi Arabia.

Doing research in Saudi Arabia means following both international data protection standards and local regulations, such as PDPL. The PDPL, effective from March 2022, controls how personal information is collected, used, and shared. It's important to clearly explain to participants how their data will be used and stored.
You need to follow the ICC/ESOMAR International Code, which is one of the best global standards for ethical market research. This helps ensure transparency, protect participants' privacy, and properly handle Saudi Arabia's unique cultural and legal requirements.

To handle these complexities, it's a good idea to work with a research company that knows Saudi Arabia well. Working with experienced agencies can help make sure your research follows both Saudi and international rules, while respecting the country's culture and laws.

How to Conduct a Successful Market Research Project in Saudi Arabia with TGM Research

Conducting market research in Saudi Arabia requires a strategic approach tailored to the country's unique economic and cultural landscape. The process involves eight key steps:

Define Your Objectives
Design Your Research Approach
Collect Data
Analyze the Results
Interpret Findings
Present Results
Develop Action Plan
Evaluate and Refine

For more detailed instructions on each step of market research, check out our guide on how to do market research. TGM Research is here to assist with every stage of your project in Saudi Arabia. We offer tools and market research methods to turn your idea into success. Plus, we provide access to our local panel, delivering answers and valuable insights into your target market.

Conclusion

Market research in Saudi Arabia presents unique opportunities, given its vibrant economy and shifting consumer trends. To succeed, researchers must navigate local cultural norms, utilize advanced digital methods, and comply with both local and international regulations. Online surveys prove particularly effective in overcoming cultural and practical hurdles, enabling efficient data collection. By collaborating with our specialists, you can tap into Saudi Arabia's expanding market potential and maximize your success with our research solutions and tools.

As the leading online data collection agency, TGM Research conducted multiple market research projects in Saudi Arabia, pioneering online research in this market. To learn more about the recent projects we did in Saudi Arabia, our industry expertise and research solutions, please contact us.

References

Population, total (no date) World Bank Open Data. Available at: https://data.worldbank.org/indicator/SP.POP.TOTL?locations=SA
United Nations, Department of Economic and Social Affairs, Population Division (2024). World Population Prospects 2024, Online Edition.
Saudi Arabia ranks among top 20 global automotive markets, with over 160,000 imports. (n.d.). Retrieved from https://equalocean.com/news/20
Saudi Arabia Private Consumption Expenditure. (n.d.). Retrieved from https://www.ceicdata.com/en/indicator/saudi-arabia/private-consumption-expenditure
World Travel & Tourism Council. (2024). News Article: World Travel & Tourism Council (WTTC). Retrieved from https://wttc.org/news-article/saudi-arabias-travel-tourism-breaks-all-records
World Bank. (2023). Individuals using the Internet (% of population) - Saudi Arabia. Available at: https://data.worldbank.org/indicator/IT.NET.USER.ZS?locations=SA.
GSMA Mobile Connectivity Index (2024). Available at: https://www.mobileconnectivityindex.com/index.html#year=2023&zoneIsocode=JOR.

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