Saudi Arabia E-commerce Market

Saudi Arabia E-commerce Market Overview:

Saudi Arabia E-commerce market size reached USD 222.9 Billion in 2024. The market is projected to reach USD 708.7 Billion by 2033, exhibiting a growth rate (CAGR) of 12.8% during 2025-2033. The inflating utilization of data analytics and AI algorithms to personalize the shopping experience by recommending products based on a user's browsing and purchase history, making it easier for customers to discover items they may be interested in, is primarily driving the market.

Saudi Arabia E-Commerce Market Analysis:

• Major Market Drivers: Key market drivers include rapid internet penetration, increasing smartphone usage, and the growing popularity of online shopping platforms. Government initiatives, such as Vision 2030, are contributing significantly to the e-commerce growth in Saudi Arabia. The rising middle class and changing consumer preferences toward convenience are fueling the demand for online retail. Additionally, advancements in logistics and payment gateways are enhancing the shopping experience, further supporting market growth. The pandemic's shift toward contactless services has accelerated e-commerce adoption, making it a key growth area in Saudi Arabia’s retail landscape. These factors are creating a positive outlook for the market across the country.
• Key Market Trends: Key trends in the Saudi Arabia e-commerce market include the widespread adoption of mobile commerce (m-commerce) as more consumers shop through smartphones. There is also a rise in digital payment methods, reducing reliance on cash transactions. In line with this, the e-commerce market size in Saudi Arabia is growing rapidly due to the increasing accessibility of high-speed internet and the country's young, tech-savvy population. Enhanced logistics and faster delivery options are also shaping consumer expectations, further accelerating the market's expansion across various sectors, including fashion, electronics, and groceries. Furthermore, social media platforms are becoming popular channels for e-commerce, with brands leveraging influencers to drive sales. The expansion of e-commerce into sectors like groceries, healthcare, and fashion is also shaping the market's growth trajectory.
• Competitive Landscape: Some of the major market players in the Saudi Arabia e-commerce industry include Carrefour, Haraj, Jazp.com andNoon, among many others.
• Challenges and Opportunities: Market faces various challenges including limited infrastructure in rural areas, logistical difficulties, and consumer concerns over online payment security. Additionally, the high cost of delivery and returns can hinder growth for smaller businesses. However, opportunities are abundant, driven by increasing internet penetration, rising smartphone use, and supportive government initiatives like Vision 2030. The growing demand for online services in sectors like grocery, healthcare, and fashion offers significant potential. Additionally, improvements in digital payment systems and logistics networks are creating a more efficient and customer-friendly e-commerce ecosystem. Top e-commerce companies in Saudi Arabia are capitalizing on these opportunities by enhancing their digital infrastructure and offering faster, more reliable delivery services.

Key Trends of Saudi Arabia E-commerce Market:

Expansion of digital payment systems

The expansion of digital payment systems is positively influencing the market in Saudi Arabia. As per the IMARC Group, the Saudi Arabia digital payments market size reached USD 1.16 Billion in 2024. People feel more comfortable shopping online as more people have access to secure card payment methods, internet banking, and mobile wallets. The entire shopping experience is enhanced by these systems since they eliminate the need for currency and allow instant payments. E-commerce systems gain from lower cart abandonment rates and more efficient checkout procedures. Additionally, digital payments facilitate features that promote increased spending, such as buy-now-pay-later choices and installment plans. Companies can grow their clientele and handle transactions more effectively. More individuals are opting to shop online because of increased confidence in user-friendly platforms and online payment security. Overall, the basis for the expansion of e-commerce in Saudi Arabia is being strengthened by the growing use of digital payments.

Broadening of electronic segments

Electronics, including smartphones, laptops, tablets, and accessories, are among the most searched and purchased items online. As new models and technologies are regularly introduced, people prefer browsing and buying online due to the convenience, variety, and competitive pricing provided by e-commerce platforms. Online shops typically offer extensive product details, user feedback, and comparison tools, helping buyers make informed decisions. Discounts, warranties, and easy return policies also encourage online purchases of electronics. The rising interest in smart home devices and personal electronics is driving the demand further. With tech-savvy users and a strong market for digital products, the thriving consumer electronics industry continues to support the overall growth of the market. According to industry reports, the consumer electronics market in Saudi Arabia reached a value of USD 13.50 Billion in 2024 and is set to expand at an approximate CAGR of 7.90% until 2034.

Growing adoption of social media marketing

Increasing adoption of social media marketing is propelling the market growth. Social media platforms are widely employed in the country, especially among young users who spend a significant amount of time online. As per industry reports, in 2024, the total number of individuals with social media accounts in the country hit 35.33 Million. E-commerce companies are utilizing these platforms to promote products, engage with customers, and create brand awareness through visuals, videos, and influencer collaborations. Social media marketing also allows personalized advertising based on user behavior and preferences, which increases the chances of conversion. Interactive features like live shopping, stories, and direct links to product pages make it easier for users to explore and purchase items instantly. As more people continue to rely on social media for shopping inspiration and product discovery, it is becoming a powerful tool that drives traffic and sales for online businesses in Saudi Arabia.

Growth Drivers of Saudi Arabia E-commerce Market:

Rising participation of small and medium-sized enterprises (SMEs)

Increasing participation of SMEs is offering a favorable market outlook. As more SMEs are adopting digital platforms, they tap into a wider customer base beyond their local markets. E-commerce enables these companies to function with reduced operating expenses and compete with larger brands through unique offerings, personalized service, and niche products. Government support and user-friendly digital tools help SMEs set up online stores quickly and manage operations efficiently. Their presence boosts competition, encourages innovation, and increases customer choice, making the online marketplace more dynamic. With the rising demand for convenience and variety, SMEs play an important role in shaping the e-commerce landscape. Their digital transformation is strengthening the overall market and contributing to sustained growth in Saudi Arabia’s online retail sector.

Growing employment of advanced technologies

Rising use of advanced technologies is making online shopping faster, smarter, and more efficient. E-commerce platforms use artificial intelligence (AI) to recommend products based on user behavior, increasing personalization and customer satisfaction. Chatbots powered by AI provide instant support, helping users with queries, returns, and order tracking. Automation in inventory and order management improves accuracy and reduces delays. Augmented reality (AR) allows customers to virtually try products like clothes or furniture, boosting confidence in purchases. Data analytics aids businesses in understanding market trends and customer preferences, enabling them to make better decisions. Secure payment gateways and fraud detection systems enhance trust and safety in transactions. As more e-commerce companies are adopting these advanced tools, they are improving customer experiences, streamlining operations, and driving higher sales.

Improvements in return and refund policies

Enhancements in return and refund policies are propelling the market growth. When buyers know they can return or exchange products easily, they feel more comfortable shopping online, especially for items like clothing, electronics, and beauty products. Flexible return windows, simple processes, and fast refunds encourage more people to try online shopping. These policies reduce the perceived risk of making a wrong purchase and lead to higher conversion rates. E-commerce platforms that offer clear and customer-friendly return policies build stronger trust and loyalty. As competition among online retailers is growing, better after-sales service is becoming a key differentiator. These improvements not only attract new customers but also ensure repeat business. In turn, higher customer satisfaction and retention are contributing to the overall growth of the market in Saudi Arabia.

Saudi Arabia E-commerce Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country level for 2025-2033. Our report has categorized the market based on type.

Type Insights:

• B2C E-commerce
• B2B E-commerce

A detailed breakup and analysis of the market based on the type have also been provided in the report. This includes B2C e-commerce and B2B e-commerce.

Regional Insights:

• Northern and Central Region
• Western Region
• Eastern Region
• Southern Region

The report has also provided a comprehensive analysis of all the major regional markets, which include Northern and Central Region, Western Region, Eastern Region, and Southern Region.

Competitive Landscape:

The Saudi Arabia e-commerce market research report has also provided a comprehensive analysis of the competitive landscape in the market. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided. Some of the key players include:

• Carrefour
• Harajs
• Jazp.com
• Noon

(Please note that this is only a partial list of the key players, and the complete list is provided in the report.)

Saudi Arabia E-commerce Market News:

• June 2025: JINGDONG Logistics, the logistics division of the e-commerce leader JD.com, introduced an express delivery service in Saudi Arabia. The service, called JoyExpress, was a self-managed B2C express delivery solution. Spanning various areas of the kingdom, JoyExpress provided home delivery services, featuring cash-on-delivery, with options for same-day or next-day delivery.
• May 2025: The government of Saudi Arabia allocated USD 1.4 Million to aid the UN Trade and Development's (UNCTAD) efforts in assessing e-commerce. Eman Al-Mutairi, the Vice Minister of Commerce, revealed the contribution agreement with Rebeca Grynspan, the UN Trade and Development Secretary-General, during the 8th session of the Intergovernmental Group of Experts on E-Commerce and the Digital Economy starting in Geneva on 12 May. The additional funding would enhance efforts to strengthen official e-commerce statistics regarding vital aspects, such as adoption, value generation for enterprises, and varying performance across sectors and nations.
• April 2025: Rabbit, a hyperlocal e-commerce firm, made its entrance into the Saudi Arabian market, aiming to deliver 20 Million products across all major cities in the country by 2026. The firm set up its regional headquarters in Riyadh and planned to expand its team in Saudi Arabia.
• April 2025: Telr enhanced its banking network in Saudi Arabia by partnering with Saudi awwal Bank to promote e-commerce transactions. This partnership advanced Saudi Arabia’s Vision 2030 goal of a cashless economy by providing seamless and secure payment solutions tailored to the Kingdom’s changing digital environment. By merging its advanced payment technology with SAB Bank’s financial knowledge, this collaboration improved transaction speed, security, and reliability, enabling e-commerce businesses to accept payments more efficiently.
• February 2025: DHL eCommerce formed a joint venture with AJEX Logistics Services to obtain a minority share in the parcel logistics company based in Saudi Arabia. The agreement would enable it to penetrate the quickly expanding e-commerce parcel market in Saudi Arabia.
• January 2025: Nice One, the Saudi e-commerce company, debuted publicly in its second listing on the Tadawul stock exchange, with its market capitalization significantly increasing on its initial trading day. Redseer Strategy Consultants offered strategic advice during the IPO preparation phase. The latter eagerly anticipated seeing Nice One’s ongoing achievements and impact on the e-commerce scene in the Middle East region.

Saudi Arabia E-commerce Market Report Coverage:

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the Saudi Arabia e-commerce market from 2019-2033.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the Saudi Arabia e-commerce market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the Saudi Arabia e-commerce industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.