Saudi Arabia E-commerce Market Size

According to Renub Research Latest Report Saudi Arabia E-commerce market was valued at US$ 24.67 billion in 2024 and is projected to grow at a CAGR of 12.10%, reaching US$ 68.94 billion by 2033. Growth is driven by rising internet penetration, smartphone adoption, government programs like Vision 2030, digital payments, improved logistics, and changing consumer behavior.

The market report covers Types (B2C E-commerce, B2B E-commerce) and Company Analysis for 2025–2033.

Market Overview

E-commerce involves buying and selling goods and services online, including digital marketplaces, online stores, and B2B transactions. Consumers can purchase products, pay bills, book services, and access digital content across various platforms.

In Saudi Arabia, digitalization, extensive smartphone usage, and a young, tech-savvy population are fueling e-commerce growth. Government initiatives like Vision 2030 support the market by promoting digital payments, improving logistics, and enhancing online retail infrastructure. Major platforms such as Amazon, Noon, and local retailers have expanded their online presence, offering a wide product range and convenient shopping experiences.

Growth Drivers

Increasing Internet and Smartphone Penetration

·        Saudi Arabia has one of the highest internet penetration rates in the Middle East.

·        Mobile shopping apps and digital payment adoption are increasing online purchases.

·        Vision 2030 encourages enterprises to develop online platforms, expanding e-commerce reach.

Tech-Savvy Young Population

·        Population over 36 million, with about 25% aged 18–24.

·        Almost full internet and smartphone penetration, enhanced by government initiatives like nationwide free Wi-Fi hotspots.

·        High online engagement: 52.3% of the population spends ~7 hours daily on the internet (CST Commission, 2023).

Government Initiatives and Vision 2030

·        Digital economy promotion through cashless transactions, fintech solutions, and logistics improvements.

·        Policies ensure secure digital payments and consumer protection, boosting online shopping trust.

·        63.7% of internet users purchased online in 2023, with 74.6% transactions by women.

·        Expected e-commerce revenue of USD 56.2 billion by 2024, yet still 18% of total retail, indicating further growth potential.

Rising Demand for Online Shopping & Electronic Payments

·        Convenience, price competitiveness, and product variety drive online adoption.

·        Digital payment methods like Mada, Apple Pay, STC Pay increase trust and safety.

·        2024: Mastercard launched domestic e-commerce transaction processing infrastructure, while Barq partnered with Mastercard Gateway to expand digital payments.

Challenges

Logistics and Last-Mile Delivery

·        Large geography and rural areas create delivery challenges.

·        High shipping costs and delayed rural deliveries affect customer satisfaction.

Consumer Trust and Payment Security

·        Some consumers prefer cash on delivery due to fraud and cyber-attack concerns.

·        Ongoing improvement in policies is gradually building trust in digital payments.

Market Segments

B2C E-commerce

·        Rapid growth driven by online shopping websites, apparel, electronics, and food delivery.

·        Platforms like Amazon, Noon, and local retailers offer personalized services, rewards, and promotions.

·        Digital payments and fast delivery strengthen the B2C segment.

B2B E-commerce

·        Businesses increasingly adopt digital procurement platforms for raw materials, wholesale products, and industrial supplies.

·        Cloud platforms, automated supply chains, and digital payments streamline transactions.

·        Example: Amazon Saudi doubled warehouse capacity in 2023, opening a 2.7 million cubic foot fulfillment center in Riyadh, storing over 9 million products.

Market Segments Overview

Types:

·        B2C E-commerce

·        B2B E-commerce

Company Analysis Covers:

·        Overview

·        Key Persons

·        Recent Developments

·        Revenue

Key Players:

·        Amazon.com Inc.

·        eBay Inc.

·        Emaar Properties

·        Namshi

·        Noon

·        Alibaba

·        Jarir Marketing (Bookstore)

·        Carrefour

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