Discover Saudi Arabia's e-commerce market, projected to grow from USD 2 billion in 2024 to USD 3.4 billion by 2030, at a CAGR of 12%.

Saudi Arabia E-Commerce Market Report is Segmented by Type (B2C E-Commerce (Applications (Beauty and Personal Care, Consumer Electronics, Fashion and Apparel, Food and Beverage, Furniture and Home, Others (Toys, DIY, Media, Etc. )), and B2B E-Commerce). The Market Sizes and Forecasts are Provided in Terms of Value (USD) for all the Above Segments.

The market size of the e-commerce industry in Saudi Arabia was expected to grow from 11 billion U.S. dollars in 2020, to reach 21 billion U.S. dollars by 2025 after the adjustments for the effect of the COVID-19 pandemic on e-commerce. From 2020 to 2022, there was an expected additional six percent annual market growth due to COVID-19 in the Gulf Cooperation Council (GCC) region.

The largest e-commerce industry in the in the Gulf Cooperation Council (GCC) region was Saudi Arabia with an expected market size of 9.8 billion U.S. dollars in 2020. The market size of e-commerce in the GCC region was expected to grow to reach 21.6 billion U.S. dollars in that year.

The size of the Saudi Arabia E-Commerce Market was valued at USD XXX Million in 2023 and is projected to reach USD XXX Million by 2032, with an expected CAGR of 15.01% during the forecast period. The e-commerce market in Saudi Arabia is experiencing rapid growth, driven by increased internet penetration, a youthful population, and rising mobile device usage. As one of the largest economies in the Middle East, Saudi Arabia has a robust consumer base that’s transitioning from traditional shopping to online retail. The Vision 2030 initiative, aimed at diversifying the economy beyond oil, strongly supports the expansion of digital and e-commerce sectors. This initiative encourages foreign investments and develops infrastructure for e-commerce businesses, including improved logistics and payment systems, making the environment favorable for both local and international players. Recent developments include: February 2023: The online fashion retailer Namshi, which operated primarily in Saudi Arabia, was acquired by the e-commerce company Noon for a total cash consideration of USD 335.2 million, and this addition of more fashion and lifestyle brands to Noon's digital offering of goods and services in the country, December 2022: Sideup, an e-commerce platform developer, received USD 1.2 million in funding from local and international investors. The business was to use its investment funds to expand its operations in Saudi Arabia and shift its headquarters to Riyadh as part of its plans for Saudi Arabia.. Key drivers for this market are: Increase in Internet Penetration and Smartphone Usage, Promotion of E-commerce by the Government Sector, including Measures to Strengthen Last-Mile Delivery and Improvise Distribution Centers. Potential restraints include: Privacy and security concerns. Notable trends are: Fashion and Apparel Segment is Expected to Grow Exponentially.

This statistic presents the market size of the e-commerce industry in Saudi Arabia from 2014 to 2017. In 2017, the e-commerce market size in Saudi Arabia amounted to three billion U.S. dollars, compared to 1.4 billion U.S. dollars in 2014.

The Saudi Arabia E-Commerce Logistics Market report segments the industry into By Service (Transportation, Warehousing Inventory Management, Value-Added Services (Labelling, Packaging)), By Business (B2B, B2C), By Destination (Domestic, International), and By Product (Fashion and Apparel, Consumer Electronics, Home Appliances, Furnniture, Beauty and Personal Care Products, Other Products (Toys. Food Products)).

Saudi Arabia E-Commerce Market size was valued at USD 21.3 Billion in 2024 and is projected to reach USD 56.6 Billion by 2032, growing at a CAGR of 13% from 2026 to 2032.

Saudi Arabia E-Commerce Market Drivers

The Saudi Arabia E-commerce Market is experiencing explosive growth, fueled by a young, tech-savvy population and government initiatives. Here's a breakdown of the key market drivers and restraints:

Market Drivers:

Young and Tech-Savvy Population: Saudi Arabia has a predominantly young population with high internet and smartphone penetration rates. This demographic is highly receptive to online shopping and digital services. Government Initiatives and Vision 2030: The Saudi government's Vision 2030 aims to diversify the economy and promote digital transformation. Government initiatives supporting e-commerce development, digital payments, and logistics infrastructure are key drivers. Increasing Internet and Mobile Penetration: High internet and mobile penetration rates provide a large and growing customer base for online retailers. Mobile commerce (m-commerce) is particularly strong in the region. Rising Disposable Incomes: Increasing disposable incomes are driving consumer spending on online purchases, particularly for discretionary items.

In 2023, the value of the e-commerce market in Saudi Arabia amounted to 8.7 billion U.S. dollars. This represented an increase from seven billion U.S. dollars of market value seen in the previous year.

Saudi Arabia AI in Retail and E-commerce Market has valued at USD 245 Million in 2023 and is anticipated to project robust growth in the forecast period with a CAGR of 35.4% through 2029F.

Saudi Arabia e-commerce industry is expected to grow at a CAGR of 19.5% during the forecast period driven by the increased smartphone usage along with the high internet penetration in KSA.

The Saudi Arabian e-commerce market is experiencing robust growth, projected to reach $24.94 billion in 2025, exhibiting a Compound Annual Growth Rate (CAGR) of 12.10% from 2019 to 2033. This expansion is fueled by several key drivers. Rising internet and smartphone penetration are empowering a digitally savvy population, increasingly comfortable with online transactions. Government initiatives promoting digital transformation and diversification of the economy are further bolstering the sector's growth. Furthermore, a young and growing population with high disposable incomes is driving demand for diverse online offerings, particularly within segments like fashion & apparel, consumer electronics, and beauty & personal care. The convenience of online shopping and the competitive pricing strategies employed by major players like Amazon, Noon, and Namshi, are also significant contributing factors. The B2C e-commerce segment dominates the market, though B2B e-commerce is also showing promising growth potential as businesses increasingly adopt online procurement strategies. While the market enjoys significant momentum, certain challenges remain. These include the need for enhanced logistics and delivery infrastructure to meet growing demand efficiently across a geographically diverse nation. Strengthening cybersecurity measures to protect against fraud and data breaches is also crucial. Furthermore, fostering greater consumer trust and confidence in online transactions through robust consumer protection laws and initiatives is vital for continued market expansion. The market is highly competitive, with both established international players and thriving local businesses vying for market share. This competition, while challenging, ultimately benefits consumers through enhanced choices, competitive pricing, and continuous innovation in the online retail landscape. Recent developments include: October 2024: Mastercard has implemented a new technology infrastructure in Saudi Arabia, enabling local processing of e-commerce transactions. The firm states that this system is designed to offer secure and efficient payment services for both Mastercard partners and consumers. Furthermore, it aligns with the Kingdom’s ambition to broaden its digital commerce landscape.September 2024: TBS Holding, a company specializing in the food industry, announced its plans to establish new partnerships in Africa and Saudi Arabia to enhance e-commerce. The company's participation in Seamless 2024 aims to engage with other companies, explore new customer segments, and focus on artificial intelligence technologies in e-commerce services amidst the evolving landscape in the Middle East and Africa. This focus on supporting digital transformation and e-commerce services will boost the company's profitability.. Key drivers for this market are: Increase in Internet Penetration and Smartphone Usage, Promotion of E-commerce by the Government Sector, including Measures to Strengthen Last-Mile Delivery and Improvise Distribution Centers. Potential restraints include: Increase in Internet Penetration and Smartphone Usage, Promotion of E-commerce by the Government Sector, including Measures to Strengthen Last-Mile Delivery and Improvise Distribution Centers. Notable trends are: Increased Internet Penetration and Smartphone Usage​ Drives the Market.

The Saudi Arabia E-Commerce report provides a detailed analysis of emerging investment pockets, highlighting current and future market trends. It offers strategic insights into capital flows and market shifts, guiding investors toward growth opportunities in key industry segments and regions.

The Saudi Arabian e-commerce eyewear market is growing at 5.20% CAGR from 2025 to 2030, driven by growing digital convenience and brand accessibility, which are accelerating online eyewear shopping trends. Key industry players include EssilorLuxottica, Safilo Group, De Rigo, LVMH, and Kering.

The Middle East and Africa E-Commerce Market Report is Segmented by B2C E-Commerce (Beauty and Personal Care, Consumer Electronics, Fashion and Apparel, Food and Beverage, Furniture and Home, and Others), B2B E-Commerce, and Country (the United Arab Emirates, Saudi Arabia, South Africa, and Rest of Middle East and Africa). The Market Sizes and Forecasts are Provided in Terms of Value (USD) for all the Above Segments.

Unlock data-backed intelligence on Saudi Arabia Kids e-Commerce Market size at USD 1 billion in 2023 showcasing industry trends and opportunities.

The Personal Care eCommerce market in Saudi Arabia is predicted to reach US$342.1m revenue by 2025. The top online retailers in the market are niceonesa.com, extra.com and shein.com.

The Saudi Arabia e-commerce cosmetics and fragrances market size is projected to grow at a CAGR of 9.50% between 2025 and 2034. The major drivers of the market include rising investments by major market players towards the development of unique, exciting, and novel fragrances and growing availability of personalised and innovative offerings across fragrances and cosmetics.

The Middle East and Africa (MEA) e-commerce market is experiencing robust growth, projected to reach a market size of $135.77 billion in 2025 and maintain a Compound Annual Growth Rate (CAGR) of 14.28% from 2019 to 2029. This expansion is fueled by several factors. Increased internet and smartphone penetration across the region are making online shopping increasingly accessible to a wider consumer base. A young and rapidly growing population, particularly in key markets like the UAE and Saudi Arabia, is driving demand for diverse products and services online. Furthermore, government initiatives promoting digitalization and e-commerce infrastructure development are creating a favorable environment for businesses. The rise of mobile commerce, coupled with convenient payment options like mobile wallets, further contributes to the market's upward trajectory. Significant investment in logistics and delivery networks is addressing previous bottlenecks and enhancing customer experience. The market is segmented by both B2C and B2B activities, with B2C dominating due to high consumer adoption of online shopping. Within the B2C sector, key product categories like beauty & personal care, fashion & apparel, consumer electronics and food & beverage are witnessing considerable growth. However, challenges such as logistical complexities in certain regions, concerns about online security, and the need for greater financial inclusion remain to be addressed to unlock the market's full potential. While the provided data focuses on the period until 2029, extrapolating from the 14.28% CAGR, we can anticipate continued strong growth beyond this point. The sustained expansion in MEA's e-commerce market hinges on continued improvements in digital infrastructure, robust investment in logistics and payment gateways, and tailored marketing strategies that address the unique needs and preferences of diverse consumer segments within the region. The presence of major global players like Amazon, Alibaba, and Walmart, alongside regional players, signifies the market's attractiveness and indicates ongoing competition, leading to innovation and improved services for consumers. The market's future will likely be characterized by further segmentation, specialization, and the increased adoption of innovative technologies such as Artificial Intelligence and machine learning to enhance personalization and customer experience. Recent developments include: June 2024: Kuehne+Nagel initiated the construction of a new fulfillment and distribution center in EZDubai, a prominent e-commerce hub within Dubai South. The chosen location is adjacent to Al Maktoum International Airport and linked to Jebel Ali Port via a bonded logistics corridor., October 2023: Calibrate Commerce, a Dubai-based e-commerce expert, unveiled Calibrate Labs, an incubator tailored for homegrown e-commerce enterprises in MENA. The initiative targets start-ups aiming to develop their own ideas or scale their existing ventures.. Key drivers for this market are: Increase in the Adoption of Latest Technology, Increasing Consumer Interest towards Convenient Shopping solutions. Potential restraints include: Increase in the Adoption of Latest Technology, Increasing Consumer Interest towards Convenient Shopping solutions. Notable trends are: The Adoption of Latest Technology is Increasing.

The Saudi Arabia Cosmetics Ecommerce & Fragrance Market is Segmented by Product Type (Hair Care, Skin Care, Make-Up Products, Deodorants, and Fragrances), Category (Mass and Premium), and End User (Men, Women, And Unisex). The market size are provided in terms of values (in USD million) during the forecast period for the above segments.