Saudi Arabia Ecommerce Market Size (2024 - 2029)

The market size of ecommerce in Saudi Arabia is expected to grow significantly in the coming years, driven by factors such as high internet penetration, advancements in mobile internet technologies, and increasing government support for digital technologies. The market includes a variety of goods sold online, such as food and beverage, consumer electronics, fashion and apparel, beauty and personal care, and home furnishings. However, the increase in ecommerce activity also presents challenges, such as the potential for increased financial fraud. Despite this, the shift towards ecommerce has been accelerated due to the COVID-19 pandemic, which has led to changes in consumer behavior and an increased reliance on digital channels.

Market Size of Saudi Arabia Ecommerce Industry

Saudi Arabia Ecommerce Market Summary
Study Period 2019 - 2029
Base Year For Estimation 2023
Market Size (2024) USD 13.61 Billion
Market Size (2029) USD 27.37 Billion
CAGR (2024 - 2029) 15.01 %
Market Concentration Low

Major Players

Saudi Arabia Ecommerce Market Major Players

*Disclaimer: Major Players sorted in no particular order

setting-icon

Need a report that reflects how COVID-19 has impacted this market and its growth?

Saudi Arabia E-Commerce Market Analysis

The Saudi Arabia Ecommerce Market size is estimated at USD 13.61 billion in 2024, and is expected to reach USD 27.37 billion by 2029, growing at a CAGR of 15.01% during the forecast period (2024-2029).

The market analyzes the revenue generated by selling goods such as food and beverage, consumer electronics, fashion and apparel, beauty and personal care, furniture and home, and others through the online sales channel.

  • Saudi Arabia has a developed economy, and internet penetration is significant in the nation, with the World Bank indicating that over 100% of the population uses the internet. This indicates that the awareness of online shopping is significant and contributes to market growth. The growing advancements in mobile internet technologies, smartphones, and broadband have boosted the adoption of internet-based services.
  • Moreover, the growing government aid in boosting the adoption of digital technologies in the nation in line with the Vision 2030 plan is analyzed to contribute to the market growth rate during the forecast period. For instance, in September 2022, the Ministry of Commerce launched ten initiatives to develop e-stores in Saudi Arabia. The ministry stated that the ten initiatives had been set in accordance with the people's suggestions to develop this sector.
  • The growing collaborations in the nation are also contributing to the market growth rate. For instance, in 2022, the Middle East's Apparel Group and FSN E-commerce, the parent company of the online fashion store Nykaa, struck a contract to enter the Gulf market. To provide differentiated Gulf Cooperation Council (GCC)-oriented beauty offerings in the United Arab Emirates, Saudi Arabia, Qatar, Oman, Kuwait, and Bahrain, Nykaa will leverage the Apparel Group's retail infrastructure network and extensive market relationships. The GCC is positioned for rapid growth, particularly in the personal care and cosmetics sectors. With the Apparel Group, Nykaa has a significant chance to broaden its core value proposition and accelerate regional offline and online retail growth.
  • As more individuals in Saudi Arabia use e-commerce for their shopping, this increases the opportunity for scammers to take advantage of vulnerable customers. According to Arabian Business, 93% of financial fraud occurred after the pandemic, which supports the fact that cybercrime activity is rapidly increasing. This is expected to challenge the growth of the market.
  • However, consumers' interest in e-commerce also increased significantly post-pandemic. The COVID-19 pandemic significantly increased online product sales due to governmental restrictions, lockdowns, and safety purposes; it became the new normal as companies and customers went digital by offering products and services through e-commerce channels during the pandemic in Saudi Arabia. Restrictions on movement and trade due to the COVID-19 pandemic led to a substantial shift in consumer behavior in the Kingdom, with locals increasingly turning to digital channels.

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 (B2B e-commerce, applications (beauty and personal care, consumer electronics, fashion and apparel, food and beverage, furniture, and home), 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) Estimates and Forecasts
Market Segmentation - by Application
B2B e-commerce
Market Size (GMV) Estimates and Forecasts

Saudi Arabia Ecommerce Market Size Summary

The Saudi Arabia Ecommerce Market is witnessing significant growth, driven by factors such as high internet penetration, government initiatives to boost digital technology adoption, and collaborations within the industry. The revenue for this market comes from the sale of various goods including food and beverage, consumer electronics, fashion and apparel, beauty and personal care, furniture and home, among others. However, the rise in cybercrime activity poses a challenge to the growth of the market. Despite this, the interest in e-commerce has increased significantly post-pandemic, with the COVID-19 restrictions leading to a shift in consumer behavior towards digital channels. The market is characterized by competitiveness among companies, with major players like Amazon, Haraj, Noon A.D. Holdings Ltd, Namshi General Trading L.L.C., and Aliexpress dominating in terms of market share. However, with increasing innovations in e-commerce, many companies and startups are increasing their market presence. The fashion and apparel segment is expected to grow exponentially, while the beauty and personal care segment is also expected to hold a significant share of the market. Government initiatives and changing consumer preferences are some of the factors driving growth in these segments.

Explore More

Saudi Arabia Ecommerce Market Size - Table of Contents

  1. 1. MARKET INSIGHTS

    1. 1.1 Market Overview

    2. 1.2 Industry Attractiveness-Porter's Five Forces Analysis

      1. 1.2.1 Bargaining Power of Suppliers

      2. 1.2.2 Bargaining Power of Buyers/Consumers

      3. 1.2.3 Threat of New Entrants

      4. 1.2.4 Threat of Substitute Products

      5. 1.2.5 Intensity of Competitive Rivalry

    3. 1.3 Key Market Trends and Share of E-commerce of Total Retail Sector

    4. 1.4 Impact of COVID-19 on the E-commerce Sales

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Type

      1. 2.1.1 B2C E-commerce

        1. 2.1.1.1 Market Size (GMV) Estimates and Forecasts

        2. 2.1.1.2 Market Segmentation - by Application

      2. 2.1.2 B2B e-commerce

        1. 2.1.2.1 Market Size (GMV) Estimates and Forecasts

Saudi Arabia Ecommerce Market Size FAQs

The Saudi Arabia Ecommerce Market size is expected to reach USD 13.61 billion in 2024 and grow at a CAGR of 15.01% to reach USD 27.37 billion by 2029.

In 2024, the Saudi Arabia Ecommerce Market size is expected to reach USD 13.61 billion.

Saudi Arabia E-Commerce Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)