Saudi Arabia E-Commerce Market Research Report: Forecast (2025-2030)

Market Definition

E-commerce is an online digital marketplace where buyers and sellers communicate through platforms to more effectively trade a variety of goods, including apparel and fashion, consumer electronics, and more.

Market Insights & Analysis: Saudi Arabia E-Commerce Market (2025-30):

The Saudi Arabia E-Commerce Market size was valued at around USD 15 billion in 2024 and is projected to reach USD 29 billion by 2030. Along with this, the market is estimated to grow at a CAGR of around 12% during the forecast period, i.e., 2025-30. This growth in the market is largely due to the strong and expanding digital infrastructure of the country. The kingdom has a massive internet penetration of around 99% and a cellular mobile connection of over 49 million in 2024. Additionally, the kingdom is witnessing rapid expansion in digital payments due to accelerating growth in its fintech sector.

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For instance, the Central Bank of Saudi Arabia reported in April 2024 that the processing of digital transactions through Saudi Arabia’s national payment system has risen by 24% on a year-over-year basis to 10.8 billion payments in 2023. In addition to this, digital retail payments have witnessed rapid growth. These developments gave Saudi Arabia a strong foundation on which its e-commerce sector is accelerating. Apart from this, the sector is among the priority sectors of the government under its Vision 2030. This allowed for 100% foreign ownership of the e-commerce businesses in the country that have obtained government licenses and fulfilled the minimum capital criteria.

The strong government support resulted in substantial investment in the sector. For instance, the General SME Authority of Saudi Arabia stated that the total venture capital investment in the e-commerce sector stood at around USD 428 million in 2023. The development of such scenarios led to an increase in e-commerce businesses in the country. For instance, the number of licensed e-commerce platforms and stores during the first half of 2023 has reached 35,314, as per the kingdom's Commerce Ministry. It is nearly an increase of 23% for the same period in 2020. Such market dynamics will boost the growth in the Saudi Arabia E-Commerce Market over the foreseeable future.

Saudi Arabia E-Commerce Market Driver:

Tech-Savvy Population Boosting E-commerce Sector – Saudi Arabia has more than 36 million people in its population. The average age of the country is approximately 30, roughly 25% of the Saudi population falls within the range of ages 18 to 24. Saudi Arabia, other than this benefit of the youth population, also enjoys a well-developed digital infrastructure. The Internet penetration in Saudi Arabia has nearly touched the entire population, mainly due to government efforts such as the installation of free Wi-Fi hotspots across the country. In addition, the kingdom has complete penetration of cellular devices. These dynamics result in the young population of the country spending a substantial amount of time on the Internet. For instance, the CST Commission of Saudi Arabia in 2023 reported that about 52.3% of the population of the kingdom spends seven hours on the internet.

The development of these scenarios brought about an extreme boom in the e-commerce industry of the kingdom. According to the CST Commission of Saudi Arabia, in 2023, as many as 63.7% of internet users bought products or services online within the country, and 74.6% of those purchases were made by women. Other than this, the General Authority of SMEs of Saudi Arabia envisages that the e-commerce sector of the country will reach revenue of approximately USD 56.2 billion by the end of 2024. Despite such huge growth, e-commerce sales account for only around 18% of the total retail sales. This, in turn, reflects the high growth that the market will gain during the forecasted period.

Saudi Arabia E-Commerce Market Opportunity:

Growing Food & Grocery Delivery Market to Offer Growth Opportunities – The food delivery category of the broader E-commerce segment is witnessing rapid growth in Saudi Arabia. The two prominent players operating in the category, Hungerstation and Jahez, hold over 67% of the market share and have seen a rapid rise in their gross merchandise volume (GMV). For instance, Jahez has reported a 31% YOY rise in its GMV in the first half of 2024, with the total orders surging to over 50 million.

Apart from this, the entry of other players, such as Keeta and Ninja, will transform the Saudi food delivery market. While Keeta wants to drive its growth through massive discount-driven offers, Ninja has already expanded to over 15 cities in Saudi Arabia, with more than 5,000 restaurants on board in the first half of 2024. Moreover, the leading grocery delivery startup Nana has entered into a strategic partnership with The Chefz for further expansion in the market. The rapidly changing market dynamics involve the entry of new players and increasing partnerships between existing players, which would further expand the food and grocery delivery market. These developments would result in the overall growth of the e-commerce market of Saudi Arabia.

Saudi Arabia E-Commerce Market Challenge:

Logistical Inadequacies to Hinder Market Growth – The rapidly booming E-commerce sector in Saudi Arabia has increased the delivery of packages and parcels in the country. The high package volumes, along with the technological inefficiencies and warehouse limitations at the local levels, create low last-mile visibility. This makes the delivery process more complex and leads to an increase in delivery time and cost. Moreover, Saudi Arabia is a large country with challenging terrain, given its geography. The limitation of the storage and warehousing facilities makes it difficult and expensive to deliver packages to its large, dispersed population. These developments could restrain the market growth as the challenging delivery requirements and high expectations of customers prove to be expensive. This would restrain the participation of small and medium enterprises in the kingdom, thereby limiting market growth.

Saudi Arabia E-Commerce Market (2025-30): Segmentation Analysis

The Saudi Arabia E-Commerce Market study of MarkNtel Advisors evaluates & highlights the major trends and influencing factors in each segment. It includes predictions for the period 2025–2030 at the national level. Based on the analysis, the market has been further classified as:

Based on the Browsing Method:

• App-Based
• Website-Based

In 2024, the App-Based browsing method holds the largest share of more than 65% in the e-commerce market of Saudi Arabia. This is largely due to the massive penetration of more than 98% of mobile phones in the country. Mobile phones turned out to be the most preferred way of shopping online for the residents of Saudi Arabia. This is largely associated with the convenience and ease of making online purchases through smartphones. For instance, the CST Commission of Saudi Arabia reported that more than 98% of the internet usage in the country happens on smartphones. These market dynamics have resulted in major market players launching their smartphone-based applications to cater to the massive audience that shops online. These dynamics are likely to continue, making the app-based segment a preferred browsing method for e-commerce in Saudi Arabia.

Based on Payment Mode:

• Cash Payment
• Card Payment
• Digital Payment

In 2024, the card payment segment holds more than 45% share in the Saudi Arabia E-Commerce Market. This is largely because digital payments, which are rapidly growing in Saudi Arabia, are in the nascent stage, and card payments already hold a prominent position as a payment mode in the country. For instance, Paymentwall, a global payment provider, highlighted that over 64% of online transactions in Saudi Arabia are done through debit cards. This is because card payments are more convenient compared to cash. While making payments as customers, they don’t have to carry large sums of cash with them.

Additionally, customers get reward points and offers when they make payments through their cards, which further incentivizes their adoption. Although payment through cards is prominent in 2024, the rapidly growing digital payment methods such as digital wallets and other options such as “buy now and pay later” are gaining traction. Such development would accelerate the adoption and proliferation of digital payments in the country over the foreseeable future.

Saudi Arabia E-Commerce Industry Recent Development:

• November 2024: Noon and Beyoung entered into a partnership where Noon will help Beyoung to enter the Middle East Market including Saudi Arabia.
• March 2024: Careem partners with Redbox, which is the largest parcel locker in the MENA region, to deliver its packages in Saudi Arabia.

Gain a Competitive Edge with Our Saudi Arabia E-Commerce Market Report

1. Saudi Arabia E-Commerce Market Report by MarkNtel Advisors provides a detailed & thorough analysis of market size & share, growth rate, competitive landscape, and key players. This comprehensive analysis helps businesses gain a holistic understanding of the market dynamics & make informed decisions.
2. This report also highlights current market trends & future projections, allowing businesses to identify emerging opportunities & potential challenges. By understanding market forecasts, companies can align their strategies & stay ahead of the competition.
3. Saudi Arabia E-Commerce Market Report aids in assessing & mitigating risks associated with entering or operating in the market. By understanding market dynamics, regulatory frameworks, and potential challenges, businesses can develop strategies to minimize risks & optimize their operations.

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