
Study Period | 2019 - 2030 |
Base Year For Estimation | 2024 |
Forecast Data Period | 2025 - 2030 |
Market Size (2025) | USD 27.96 Billion |
Market Size (2030) | USD 49.49 Billion |
CAGR (2025 - 2030) | 12.10 % |
Market Concentration | Low |
Major Players![]() *Disclaimer: Major Players sorted in no particular order |
Saudi Arabia E-Commerce Market Analysis
The Saudi Arabia Ecommerce Market size is estimated at USD 27.96 billion in 2025, and is expected to reach USD 49.49 billion by 2030, at a CAGR of 12.1% during the forecast period (2025-2030).
The Saudi Arabian e-commerce landscape is experiencing rapid digital transformation, driven by high internet adoption and technological advancement. According to the Communications, Space, and Technology Commission's Saudi Internet Report 2022, internet penetration in the country reached 98.6%, indicating widespread digital accessibility. This digital infrastructure has created a robust foundation for e-commerce growth, with major platforms investing in advanced technologies and innovative solutions to enhance customer experience. The integration of artificial intelligence, cloud computing, and data analytics has enabled retailers to offer personalized online shopping experiences and improve operational efficiency.
The market is witnessing significant consolidation and strategic partnerships among key players to strengthen their market position. A notable development was the acquisition of online fashion retailer Namshi by Noon for USD 335.2 million in February 2023, demonstrating the market's maturity and potential for further consolidation. According to checkout.com's February 2023 report, 91% of Saudi consumers now shop online, reflecting the widespread adoption of digital commerce across the population. This high adoption rate has attracted substantial investments in digital infrastructure and online payment solutions.
The logistics and fulfillment sector is undergoing substantial modernization to support the growing e-commerce ecosystem. In early 2023, Starlinks, a Saudi logistics provider, launched a state-of-the-art fulfillment facility equipped with over 250 robots for logistics automation, capable of storing more than 12 million products. This advancement in warehousing and logistics infrastructure has enabled faster delivery times and improved inventory management, contributing to enhanced customer satisfaction and operational efficiency. The integration of automated systems and smart warehousing solutions has become a key differentiator for e-commerce platforms operating in the market.
Security concerns and fraud prevention have emerged as critical focus areas for the industry. According to Arabian Business, 93% of financial fraud cases occurred after the pandemic, highlighting the need for robust security measures. In response, e-commerce platforms are implementing advanced security protocols and fraud detection systems. Major platforms like Amazon.sa, which recorded approximately 20.8 million monthly visits in March 2023 according to SEMRUSH, are investing heavily in security infrastructure to protect consumer data and ensure safe transactions, thereby building consumer trust in online shopping.
Saudi Arabia E-Commerce Market Trends
Increase in Internet Penetration and Smartphone Usage
The remarkable growth in internet and smartphone penetration in Saudi Arabia has created a robust foundation for e-commerce market expansion. According to the Communications, Space, and Technology Commission's Saudi Internet Report 2022, internet penetration in the country reached an impressive 98.6%, with some regions like Riyadh achieving nearly 100% penetration. This widespread internet access is complemented by significant improvements in connectivity infrastructure, with average mobile download speeds increasing to 180.2 Mbps in 2022, while the average download speed for 5G reached 344.4 Mbps, enabling faster and more reliable online shopping experiences.
The proliferation of mobile devices has transformed consumer shopping behavior, with mobile internet usage reaching 97.9% in 2022. According to GSMA Intelligence data, mobile connection penetration in Saudi Arabia stood at 115.9% of the total population in January 2023, indicating multiple device ownership. This high smartphone penetration has led to increased adoption of mobile commerce, with retailers adapting their strategies to provide omnichannel experiences. For instance, major e-commerce vendors like SHEIN, Noon, WalaOne, and Amazon have developed sophisticated mobile applications to capitalize on the growing preference for mobile commerce, offering features like personalized recommendations and seamless checkout processes.
Promotion of E-commerce by the Government Sector, including Measures to Strengthen Last Mile Delivery and Improve Distribution Centers
The Saudi government has implemented comprehensive initiatives to strengthen the e-commerce ecosystem, particularly focusing on improving last-mile delivery and distribution infrastructure. In December 2022, the Ministry of Commerce launched ten strategic reforms following a survey of 6,000 customers, mandating online business outlets to expand their geographical coverage beyond main cities and diversify shipping options to prevent delivery delays. These initiatives also require online storefronts to offer various payment solutions such as Mada and credit cards, creating a more inclusive and efficient digital retail environment.
The government's commitment to modernizing logistics infrastructure is evident through significant investments in automated warehousing and distribution centers. In February 2023, the Saudi Authority for Industrial Cities and Technology Zones (Modon) signed an agreement to establish 14 fully digital and automated warehouses in Jeddah's first Industrial City, offering quick and temporary logistical solutions to support industrialists and entrepreneurs. Additionally, the country's National Transport and Logistics Strategy aims to position Saudi Arabia as a global logistics hub connecting three continents, with a particular focus on improving road quality and safety to support online business operations. These infrastructure developments are complemented by the Ministry of Commerce's establishment of the Saudi E-commerce Council, which oversees customer interaction and mandates commercial licensing for all online storefronts, ensuring a regulated and trustworthy e-commerce environment.
Segment Analysis: By Application
Fashion & Apparel Segment in Saudi Arabia E-commerce Market
The fashion and apparel segment dominates the Saudi Arabia e-commerce market, commanding approximately 32% market share in 2024. This significant market position is driven by the increasing adoption of online retail platforms by fashion-conscious Saudi consumers, particularly among the younger demographic. The segment benefits from the presence of major international brands and local retailers who have established a robust online retail presence through various e-commerce platforms. The growth is further supported by the comprehensive payment portfolio offered by market vendors and the implementation of advanced technologies in warehousing and logistics specifically designed for fashion retail. Additionally, the high individual net income and growing per capita GDP in Saudi Arabia have contributed to increased purchasing power, particularly benefiting the fashion and apparel segment.

Beauty & Personal Care Segment in Saudi Arabia E-commerce Market
The beauty and personal care segment is emerging as the fastest-growing category in the Saudi Arabian e-commerce market, with a projected growth rate of approximately 18% during 2024-2029. This remarkable growth is driven by increasing consumer awareness of personal grooming, rising demand for premium beauty products, and the expansion of global skincare companies in the Saudi market through digital channels. The segment's growth is further accelerated by the increasing adoption of personalized beauty solutions and the rising trend of organic and vegan cosmetics products, particularly among Gen Z and Millennial consumers. The segment is also benefiting from strategic investments in B2C e-commerce platforms specifically designed for beauty and personal care products, enhanced by advanced digital payment solutions and improved logistics infrastructure.
Remaining Segments in Saudi Arabia E-commerce Market By Application
The Saudi Arabia retail e-commerce market encompasses several other significant segments, including consumer electronics, food and beverage, furniture and home, and other miscellaneous categories. The consumer electronics segment maintains a strong presence, driven by the high penetration of smartphones and digital devices. The food and beverage segment is experiencing transformation through innovative delivery solutions and digital payment integration. The furniture and home segment is benefiting from the growing interest in home decoration and renovation projects. These segments are collectively strengthened by the government's digital transformation initiatives, improved logistics infrastructure, and the increasing adoption of mobile payment solutions across the Kingdom. The rise of digital shopping habits is also contributing to growth across these segments.
Saudi Arabia E-Commerce Industry Overview
Top Companies in Saudi Arabia E-commerce Market
The Saudi Arabian e-commerce landscape is dominated by major players including Amazon, Noon, Haraj, AliExpress, and SHEIN Group, who have established strong market positions through various strategic initiatives. These companies are increasingly focusing on product innovation through the integration of artificial intelligence, machine learning, and advanced analytics to enhance personalized shopping experiences and improve operational efficiency. The market leaders are demonstrating operational agility by investing in automated warehousing solutions, expanding their logistics networks, and implementing sophisticated inventory management systems. Strategic moves in the market include the adoption of diverse payment solutions, including buy-now-pay-later options, partnerships with local retailers, and the development of omnichannel experiences. Companies are also expanding their presence through investments in fulfillment centers, establishing strategic partnerships with logistics providers, and enhancing their last-mile delivery capabilities to serve the growing Saudi consumer base.
Global Giants Compete with Regional Specialists
The Saudi e-commerce market exhibits a dynamic competitive structure where global e-commerce giants compete alongside regional specialists and local platforms. International players like Amazon and AliExpress leverage their technological capabilities and global supply chain networks, while regional players such as Noon and Haraj capitalize on their local market knowledge and cultural understanding. The market is experiencing moderate consolidation through strategic acquisitions and partnerships, as evidenced by Noon's acquisition of Namshi and various collaborations between international platforms and local retailers.
The competitive landscape is further shaped by the presence of specialized e-commerce platforms focusing on specific product categories such as fashion, electronics, and beauty products. Market consolidation is driven by the need to achieve economies of scale, enhance technological capabilities, and expand market reach. The trend of mergers and acquisitions is particularly notable in the fashion and beauty segments, where larger platforms are acquiring specialized retailers to diversify their product offerings and strengthen their market position.
Innovation and Customer Experience Drive Success
For incumbent players to maintain and increase their market share, the focus needs to be on continuous technological innovation, enhancement of customer experience, and optimization of supply chain operations. Companies must invest in advanced analytics capabilities, artificial intelligence-driven personalization, and seamless payment solutions while maintaining strong relationships with suppliers and logistics partners. The development of robust mobile commerce capabilities, integration of social commerce features, and implementation of effective customer loyalty programs are becoming increasingly critical for market success.
New contenders entering the market need to differentiate themselves through specialized offerings, superior customer service, or innovative business models. Success factors include building trust through reliable delivery services, offering competitive pricing strategies, and developing strong partnerships with local businesses. The regulatory environment, particularly regarding data protection and e-commerce operations, plays a crucial role in shaping competitive strategies. Companies must also address the risk of substitution from traditional retail by offering unique value propositions and maintaining strong relationships with end-users through personalized experiences and efficient customer service. Additionally, the rise of D2C e-commerce models is encouraging companies to directly engage with consumers, enhancing brand loyalty and customer satisfaction.
Saudi Arabia E-Commerce Market Leaders
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Amazon.com, Inc.
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Namshi Holding Ltd.
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Noon Ad Holdings Ltd (Noon E-Commerce)
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Jazp.com
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AliExpress
- *Disclaimer: Major Players sorted in no particular order

Saudi Arabia E-Commerce Market News
- 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.
Saudi Arabia E-Commerce Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions and Market Definition
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
- 4.1 Market Overview
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4.2 Industry Attractiveness-Porter's Five Forces Analysis
- 4.2.1 Bargaining Power of Suppliers
- 4.2.2 Bargaining Power of Consumers
- 4.2.3 Threat of New Entrants
- 4.2.4 Threat of Substitutes
- 4.2.5 Intensity of Competitive Rivalry
- 4.3 Key Market Trends and Share of E-commerce of Total Retail Sector
- 4.4 Impact of COVID-19 on the E-commerce Sales
5. MARKET DYNAMICS
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5.1 Market Drivers
- 5.1.1 Increase in Internet Penetration and Smartphone Usage
- 5.1.2 Promotion of E-commerce by the Government Sector, including Measures to Strengthen Last-Mile Delivery and Improvise Distribution Centers
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5.2 Market Restraints
- 5.2.1 Increasing Incidents of Cybercrime, Fraudulent Transactions on E-commerce Platforms
- 5.3 Analysis of Key Demographic Trends and Patterns Related to the E-commerce Industry in Saudi Arabia
- 5.4 Analysis of the Key Modes of Transaction in the E-commerce Industry in Saudi Arabia
- 5.5 Analysis of Cross-border E-commerce Industry in Saudi Arabia
- 5.6 Current Positioning of Saudi Arabia Country in the E-commerce Industry in the Middle East
6. MARKET SEGMENTATION
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6.1 By Type
- 6.1.1 B2C E-commerce
- 6.1.1.1 Market Size (GMV) for the Study Period
- 6.1.1.2 By Application
- 6.1.1.2.1 Beauty and Personal Care
- 6.1.1.2.2 Consumer Electronics
- 6.1.1.2.3 Fashion & Apparel
- 6.1.1.2.4 Food & Bevrages
- 6.1.1.2.5 Furniture and Home
- 6.1.1.2.6 (Toys, DIY, Media, Etc.)
- 6.1.2 B2B e-commerce
- 6.1.2.1 Market Size (GMV) for the Study Period
7. COMPETITIVE LANDSCAPE
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7.1 Company Profiles
- 7.1.1 Amazon.com, Inc.
- 7.1.2 Namshi Holding Ltd.
- 7.1.3 Noon Ad Holdings Ltd (Noon E-Commerce)
- 7.1.4 Jazp.com
- 7.1.5 AliExpress
- 7.1.6 VogaCloset
- 7.1.7 SHEIN Group
- 7.1.8 DSM Grup Danışmanlık İletişim ve Satış Tic. A.Ş. (Trendyol)
- *List Not Exhaustive
8. INVESTMENT ANALYSIS
9. MARKET OPPORTUNITIES AND FUTURE OUTLOOK
Saudi Arabia E-Commerce Industry Segmentation
The Saudi Arabian e-commerce market is defined based on the revenues generated from the sales of various end-user applications, such as food, beverage, consumer electronics, fashion and appraisal, beauty and personal care, furniture, home, and other end users. The analysis is based on market insights captured through secondary and primary research. The market also covers the major factors impacting its growth in terms of drivers and restraints.
The Saudi Arabia e-commerce market 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 in USD for all the above segments.
By Type | B2C E-commerce | Market Size (GMV) for the Study Period | ||
By Application | Beauty and Personal Care | |||
Consumer Electronics | ||||
Fashion & Apparel | ||||
Food & Bevrages | ||||
Furniture and Home | ||||
(Toys, DIY, Media, Etc.) | ||||
B2B e-commerce | Market Size (GMV) for the Study Period |
Saudi Arabia E-Commerce Market Research FAQs
How big is the Saudi Arabia Ecommerce Market?
The Saudi Arabia Ecommerce Market size is expected to reach USD 27.96 billion in 2025 and grow at a CAGR of 12.10% to reach USD 49.49 billion by 2030.
What is the current Saudi Arabia Ecommerce Market size?
In 2025, the Saudi Arabia Ecommerce Market size is expected to reach USD 27.96 billion.
Who are the key players in Saudi Arabia Ecommerce Market?
Amazon.com, Inc., Namshi Holding Ltd., Noon Ad Holdings Ltd (Noon E-Commerce), Jazp.com and AliExpress are the major companies operating in the Saudi Arabia Ecommerce Market.
What years does this Saudi Arabia Ecommerce Market cover, and what was the market size in 2024?
In 2024, the Saudi Arabia Ecommerce Market size was estimated at USD 24.58 billion. The report covers the Saudi Arabia Ecommerce Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the Saudi Arabia Ecommerce Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
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Saudi Arabia Ecommerce Market Research
Mordor Intelligence offers comprehensive insights into Saudi Arabia's rapidly evolving ecommerce landscape. We combine extensive research expertise with deep industry knowledge. Our analysis covers the full spectrum of digital commerce, including online retail and internet retail operations. We examine both B2B ecommerce and B2C ecommerce segments. The report provides a detailed analysis of online shopping trends and digital shopping behaviors. It also highlights the growing importance of mobile commerce and social commerce in the region's digital ecosystem.
Stakeholders gain valuable insights into online business operations. This includes online storefront implementation and ecommerce platform selection. The report, available as an easy-to-download PDF, examines key technological aspects such as shopping cart software, online payment systems, and digital payment solutions. Our analysis particularly benefits D2C ecommerce ventures and retail ecommerce businesses. It offers comprehensive coverage of ecommerce software adoption and digital retail transformation strategies. The report provides actionable intelligence for businesses looking to optimize their online storefront presence and enhance their competitive positioning in the Saudi Arabian market.