Saudi Arabia’s e-commerce sector is entering a transformative era, projected to nearly triple in size to $708.7 billion by 2033, according to IMARC’s Saudi Arabia E-commerce Market Report. Fueled by artificial intelligence (AI), digital payment innovation, and a young, connected population, the Kingdom is rapidly evolving into one of the world’s most dynamic digital retail markets.
With over 98% internet penetration and one of the highest global smartphone adoption rates, Saudi Arabia offers ideal conditions for e-commerce expansion. Post-pandemic consumer behavior, paired with Vision 2030’s focus on digital transformation and economic diversification, continues to drive online shopping growth.
Kearney’s Mohammed Dhedhi noted that “Saudi Arabia’s e-commerce surge is underpinned by proactive government support and a tech-savvy infrastructure that outpaces many peers.” The Kingdom’s e-commerce law and Vision 2030 reforms have strengthened consumer trust, while initiatives across logistics and digital payments have reduced transaction friction.
Mobile commerce dominates, with 66% of consumers using smartphones for purchases. Social media has evolved into a key sales channel, where 35 million users engage with influencers and brands directly. Trendyol Gulf CEO Mohamed El-Ansari said: “For Gen Z and millennials, the shopping journey often starts with a scroll—where inspiration turns into purchase in seconds.”
The digital payments market hit $1.16 billion in 2024, driven by the national Mada card network, mobile wallets, and Apple Pay. E-commerce transactions using Mada cards reached SR197.42 billion ($52.6 billion) in 2024, up 25.8% year-on-year. Enhanced security, instant checkouts, and AI-powered personalization are further boosting consumer confidence and convenience.
AI is revolutionizing Saudi retail—powering recommendation engines, chatbots, and augmented reality tools that allow customers to “try before they buy.” El-Ansari emphasized that local relevance—such as modest fashion edits for Ramadan or localized product curation—has been key to long-term loyalty.
While electronics remain the top online category, sectors like groceries, healthcare, and fashion are growing rapidly. SMEs are thriving on digital platforms, supported by government entrepreneurship programs and partnerships with global marketplaces such as Amazon and TikTok Shop.
Beyond retail, e-commerce is becoming a pillar of Saudi Arabia’s non-oil economy. Online sales currently account for around 6% of the Kingdom’s $92.6 billion retail market, but are stimulating growth in logistics, warehousing, and fintech. Experts predict 12–14% annual growth over the next five years.
Sustainability is also rising on the agenda, with the Kingdom targeting 30% electric vehicles in Riyadh by 2030 and integrating AI-driven logistics to reduce carbon emissions.
As Saudi Arabia continues to harness the power of AI, fintech, and youth-driven innovation, its e-commerce ecosystem is not just scaling in size—it’s reshaping the future of digital commerce across the Middle East.
