Did you realize that Saudi Arabia stands out as a growing e-commerce hub globally? Absolutely! With a population of tech savvy individuals who enjoy shopping online Saudi Arabia presents a lucrative digital landscape for businesses. For those considering venturing into the Arabian market with their products or services the time is ripe! The e-commerce in Saudi Arabia is flourishing, presenting opportunities for businesses across all scales. By familiarizing yourself with customs and traditions you can pave your way, towards achieving success.
Point to be taken in view is that e-commerce in Saudi Arabia is growing and has generated US$10 billion in revenue in recent year, making the Kingdom the 28th largest online market globally and bringing it on par with its regional neighbour, the UAE.
Infographics by GO-Globe E-Commerce Saudi Arabia
Top Statistics for E-Commerce in Saudi Arabia
- Saudi e-commerce generated US$10 billion in revenue in 2023, making the Kingdom the 28th largest online market globally and bringing it on par with its regional neighbour, the UAE.
|
Year
|
Revenues in (million USD)
|
|
2017
|
6,131
|
|
2018
|
8,717
|
|
2019
|
9,784
|
|
2020
|
10,864
|
|
2021
|
11,038
|
|
2022
|
11,743
|
|
2023
|
13,614
|
|
2024
|
14,159 (Estimated)
|
- Saudi Arabia is the 29th largest market for eCommerce with a predicted revenue of US$14,159.9 million by 2024, placing it ahead of Austria.
- Revenue is expected to show a compound annual growth rate (CAGR 2024-2028) of 10.1%, resulting in a projected market volume of US$20,808.8 million by 2028.
- With an expected increase of 13.0% in 2024, the Saudi Arabian eCommerce market contributed to the worldwide growth rate of 10.4% in 2024
- In the eCommerce Market, the number of users is expected to amount to 24.7 million users by 2029.
- User penetration is expected to be 43.6% in 2024 and to hit 63% by 2029.
- The average revenue per user (ARPU) is expected to amount to US$552.90.
- 42.6% of Saudi Arabia’s population is female, while 57.4% of the population is male.
- KSA stands as a pivotal market, driving around 45% of the entire digital economy in the Middle East and North Africa (MENA) region.
- For perspective, the Kingdom is projected to surpass 20 million digital economy users by 2030.
Online Buyer Demographics
|
Nationality
|
%age
|
|
Saudis
|
42%
|
|
Non-Arab Immigrants
|
58%
|
- The Kingdom of Saudi Arabia (KSA) is positioned as a global leader in digital maturity with internet penetration exceeding 95%.
- Even though Saudi Arabia is a large country, the majority (>70%) of the online market is fuelled by cities such as Riyadh, Jeddah and the Eastern region.
- Some of the popular ecommerce and digital platforms include:
- noon
- Amazon
- Jahez
- Hungerstation
- Careem
- eXtra
- Souq.com
- Jarir.com
- Expatriates.com
- Also, omnichannel operators such as Carrefour, Cenomi, 6thStreet.com and Centrepoint to name a few, have played pivotal roles in shaping KSA’s digital economy.
- UAE, Saudi Arabia and Qatar have remained among the world’s top 10 emerging markets for logistics.
- Today, the rate of digital payments in the Kingdom is at 65%, on track to hit the Saudi Central Bank’s goal of 70% by the end of 2025.
E-commerce revenue by category
| Category | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 |
| Clothes & Shoes | 1,591 | 1,893.5 | 2188.9 | 2510.7 | 2866.5 | 3209.5 |
| Consumer electronics | 1805.5 | 2,037.6 | 2262.7 | 2487.6 | 2747.2 | 2998.9 |
| Food, cosmetics and Pharmaceuticals | 409.8 | 472.2 | 542.1 | 615.3 | 693.1 | 776.8 |
| Furniture & Home Appliances | 669.9 | 808.1 | 952 | 1112.9 | 1284.4 | 1477.5 |
| Special Interest | 1,417.8 | 1,604.5 | 1797.4 | 1991 | 2193 | 2401.6 |
E-commerce Users by Age Group in millions
| 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | |
| 16-24 | 2.077 | 2.303 | 2.529 | 2.753 | 2.978 | 3.188 | 3.377 |
| 25-34 | 4.26 | 4.846 | 5.463 | 6.107 | 6.789 | 7.473 | 8.142 |
| 35-44 | 1.646 | 1.911 | 2.202 | 2.51 | 2.842 | 3.183 | 3.525 |
| 45-54 | 0.411 | 0.501 | 0.608 | 0.731 | 0.876 | 1.04 | 1.223 |
| 55+ | 0.14 | 0.202 | 0.287 | 0.39 | 0.518 | 0.67 | 0.847 |
By Gender
| Year | Men | Women |
| 2014 | 6.166 | 2.369 |
| 2015 | 7.09 | 2.673 |
| 2016 | 8.104 | 2.984 |
| 2017 | 9.188 | 3.302 |
| 2018 | 10.372 | 3.631 |
| 2019 | 11.606 | 3.949 |
| 2020 | 12.867 | 4.247 |
Conclusion
The eCommerce sector, in Saudi Arabia, is experiencing a surge in growth. Providing beneficial opportunities for companies to explore further opportunities in the market. With its strong internet, large population, and booming digital economy, Saudi Arabia is a top contender in the global online marketplace. If you're an enterprise or looking to expand, now is a chance. Access and benefit from this thriving market's potential. To thrive in Saudi Arabia's rise as a tech hub, one must understand its culture, market, and consumers.
Frequently Asked Questions
What makes Saudi Arabia a significant market, for e-commerce businesses?
Saudi Arabia boasts one of the largest e-commerce industries globally. It is projected to generate over $13 billion soon. Its tech-savvy public and 95% internet usage make it a hub for digital enterprises.
What are the primary online shopping platforms available, within Saudi Arabia?
In Saudi Arabia's e-commerce industry, you'll find platforms like noon and Amazon. There are also favorites like Jahezz and Hungerstation. Souk.com and omnichannel players like Carrefour and 6thStreet.com are making their mark, too.
Who makes up the group of individuals shopping online in Saudi Arabia?
In Saudi Arabia's shopping, there is a mix of nationals (42%) and non-Arab expatriates (58%). The majority of shoppers are in the 25 to 34 age bracket. Individuals from all age groups are represented in the market.
What is the size of the e-commerce sector, within Saudi Arabia?
Saudi Arabia has the world's largest online market. It will exceed USD 14 billion by 2024, with a 10% annual growth rate. The market is expected to expand from 2024 to 2028 by 10%.
What are the main product categories found within Saudi Arabia’s market?
People are interested in categories like fashion items, gadgets, food, drinks, beauty products, medications, household furnishings, and home equipment.
Are payments commonly used in Saudi Arabia?
Digital transactions have become popular nowadays as 65 percent of payments are made electronically than with cash. The Saudi Central Bank has set a goal to raise this percentage to 70 by the year 2025.
Which cities are, at the forefront of e-commerce operations, within Saudi Arabia?
Riyadh and Jeddah, along with the Eastern Region of Saudi Arabia, are responsible for more than 70% of the online market share.
What's the percentage of people using e-commerce services among users residing Saudi Arabia’s e-commerce industry?
By 2024 the expected user penetration is projected to reach 43 point 5 percent. It is anticipated to increase to 63 percent by the year 2029, indicating an increase in the popularity of online shopping.
How does Saudi Arabia measure up against nations, in the region?
Saudi Arabia and the UAE are both, at the forefront of the e-commerce market within the Middle East and North Africa region. Together responsible, for 45 percent of the area’s economy.
Before venturing into the e-commerce market what key information should companies be aware of?
In today's market, businesses must understand the culture. They must also keep up with consumer preferences and trends to thrive. They must also note the rise of payment methods and cities' influence in online shopping.
