Name: Saudi Arabia E-Commerce Market and Analysis Report – Opportunities and Forecast 2023-2030
SKU: UP3541-001001
Availability: InStock

Saudi Arabia E-Commerce Market and Analysis Report – Opportunities and Forecast 2023-2030

Report Description Table Of Content Sample Request Request For Customization

Saudi Arabia e-commerce market is registering a CAGR of 19.5% during the forecast period.

Saudi Arabia E-Commerce Market

To have an edge over the competition by knowing the market dynamics and current trends of “Saudi Arabia E-Commerce Market” request for Sample Report here

Major Saudi Arabia E-Commerce Market Drivers

Increasing awareness among consumers about the online shopping platform is supporting the growth of the e-commerce market in KSA. In addition, rising technological advancement in mobile internet and smartphones has increased the adoption of internet based services in Saudi Arabia. Increased smartphone usage coupled with the high internet penetration rate is expanding the e-commerce market in Saudi Arabia. For instance, internet traffic has been increased by 17% i.e., 35 million terabytes as compared to 2021 as per the Communications, Space and Technology Commission report 20222. Saudi Arabia Internet penetration growth has been increased to 98.6% in 2022.

Saudi government planned to diversify its economy to attract more investment under Saudi Vision 2030. E-commerce is the one of the most important aspect of Vision 2030. The country has launched various initiatives to boost and support the e-commerce such as expanding and promoting e-commerce education programs in academic institution, supporting e-commerce services in cities and introducing guidelines for cyber security in e-commerce. These initiatives has increased adoption of digital technologies in Saudi Arabia. For instance, Saudi Arabia planned to invest USD 6.4 billion in coming technologies and entrepreneurship to enhance Saudi Arabia digital vision for 2030.

Saudi Arabia E-Commerce Market Technological awareness along with the implementation of 4G and 5G technology among consumers is anticipate to have positive impact on Saudi Arabian e-commerce market. For example, KSA Ministry of Commerce has introduced 10 initiatives to develop the e-stores in the country. This is expected to propel the Saudi Arabia ecommerce market.

Do you want to know more about the Research process and detailed Methodology, Request Research Methodology of this report

Increasing smartphone and broadband penetration rates are propelling a shift toward online buying in Saudi Arabia. One of the primary factors fostering the growth of Saudi Arabia’s E-commerce market is the government’s growing aim for e-commerce development. Also, significant growth in internet penetration and connected device access to e-commerce platforms and websites present positive growth to the Saudi Arabia E-commerce market. E-commerce in Saudi Arabia enables local online sellers, regional and international market players, startups, and home-based businesses to conduct business without building any additional infrastructure and maintaining a physical existence in Saudi Arabia. In addition, conventional businesses varying from FMCG companies to banks are progressively witnessing e-commerce platforms and websites as the fastest-rising complementary channel for their offerings.

Saudi Arabia E-Commerce Market Different government entities in Saudi Arabian market have initiated different programs to enhance the local e-commerce industry by motivating online buyers to buy more, improving logistics infrastructure, and bringing new opportunities for new local sellers into digital platforms. For example: The Ministry of Commerce and Investment and its affiliated organizations are leading initiatives to establish a favorable environment for online business. They are actively involved in shaping regulatory policies, developing customer trust in e-commerce, and helping small and medium enterprises by promoting e-commerce initiatives. Moreover, prioritizing the Saudi Post under the Ministry of Communications and Information Technology will undoubtedly develop competitiveness and simplify the local logistics network and infrastructure of E-commerce Industry in Saudi Arabia.

Customers are getting more comfortable with online transactions and trust rises in e-commerce platforms, the demand increases for e-commerce shopping. Factors such as reliable delivery services, preventive and authorized payment systems, and supporting return policies have contributed to this trend. In addition to this, the strategic location of Saudi Arabia and rising trade relations results in different growth opportunities for cross-border e-commerce. For instance, the Saudi Arabian Monetary Authority is dedicated to developing the growth of the Saudi Arabian e-commerce market. They aim to accomplish this by introducing a strong and secure payment ecosystem and developing convenience for customers through different payment channels. However, these initiatives are predicted to tackle the foremost challenges hampering growth of Saudi Arabia’s e-commerce market. These challenges include the non-existence of an unlimited platform for all stakeholders, restricted and unreliable payment options, and the shortage of high-quality, cost-effective services from logistics providers.

The rising innovations in smartphones, mobile internet, digital technologies, and broadband have fostered the adoption of internet-based services. The growing government assistance in encouraging the usage of digital technologies lines up with the Vision 2030 plan and is predicted to significantly contribute to the growth of Saudi Arabia E-commerce market in the forecast period. The Ministry of Commerce has introduced ten initiatives to develop e-stores in Saudi Arabia, following the public’s suggestions to make profitable this sector. Furthermore, renovating the telecommunications infrastructure, establishing a strong digital payment ecosystem, optimizing distribution systems, nurturing local industries, and encouraging innovation and entrepreneurship are all important steps in developing Saudi ecommerce market in the coming period.

In case, any of your pain points areas are not covered in the current scope of this report, Request for Free Customization here

B2C E-commerce Segment is expected to increase in near future.

B2C e-commerce spending in Saudi Arabia has witnessed significant growth in recent years. This growth has been propelled by a widespread transition from offline to online and mobile shopping. Supply-side advancements, advanced quality of service, developed delivery services, and the growing variety of products and services accessible are predicted to propel segment growth. With a rising taste of customers for shopping from an e-commerce platform, e-commerce market players are predicted to invest more shortly. These investments are predicted to propel organic growth through extended operations and inorganic growth via acquisitions. Growing technological adoption and widespread smartphone availability made e-commerce sector more efficient and reachable. In addition, rising usage of social networks is further propelling demand for online purchases around a broad variety of products and services. The ecommerce in KSA is anticipated to observe high growth in the coming period due to significant growth in digital dependency and less complexity in shopping on online platforms.

Saudi Arabia E-Commerce Market Fashion and Apparel Segment is predicted to grow at the fastest rate.

Fashion and Apparel segment contributes a substantial share of revenue generated by e-commerce offerings from market vendors across the country. The clothing and fashion industries have a wide variety of outfits including watches, shoes, eyewear, jewelry, bags, and accessories, comprising products for boys, men, girls, and women. Even with the strict social norms dictating dress and appearance, there is a thriving interest and intent among both men and women in the fashion and apparel segment.

The Saudi Arabian Fashion Commission has contributed to developing the nation substantially by nurturing the fashion industry. Their initiatives, such as the 100 Saudi Brands program and the establishment of the Saudi Professional Fashion Association, have significantly contributed to this effort. This initiative focuses on empowering 100 Saudi designers and premium brands, propelling business expansion. It is probably to foster e-commerce demand in the country, as online platforms can efficiently market these products to a wider audience.

In 2022, FSN International, a parent corporation of omnichannel retailer Nykaa, established a strategic partnership with the Middle East Easter Apparel Group to extend its existence into the GCC region, which encompasses Saudi Arabia.

Top Market Players

Various notable players operating in the market, include Amazon.com Inc, Noon Ad Holdings Ltd. (Noon E-Commerce), Jazp.com, Aliexpress., Namshi General Trading L.L.C, Carrefour among others.

Key Development

- In 2023, Saudi Amazon doubled its storage volume with establishment of a new fulfillment center with a storage facility of 2.7 million cubic feet to support more entrepreneurs and sellers in Saudi Arabia to scale their business online.
- In 2023, Noon A.D. Holding Ltd launched Noon One to help customers save money on their purchases. This effective program offers members limitless free delivery on every app product and prompts them to buy more regularly, delivering a convenient and cost-effective shopping experience.
- In 2023, Noon.com acquired Namshi to expand its digital network of products and services.
- In 2023, Majid AI Futtaim inaugurated its initial carrefour store which is 5000 square meters in AI Kharj to provide more than 20,000 products and enable a seamless and easy shopping experience for consumers.
- In 2022, Noon.com opened a massive 45,000m2 customer fulfillment center in Riyadh, marking its largest warehouse space in the city to deliver products speedily to millions of clients across Saudi Arabia.
- In 2022, Saudi Arabia signed an agreement with Amazon to foster opportunities for SMEs around the Kingdom.

Segments covered in the Report:

The Saudi Arabia E-Commerce Market has been segmented on the basis of Type and application. Based on Type, the market is segmented into B2C E-commerce and B2B E-commerce. Based on Application, the market is segmented into Fashion & Apparel, Beauty & Personal Care, Consumer Electronics, Food & Beverages and Others.

For detailed scope of the “Saudi Arabia E-Commerce Market” report request a Sample Copy of the report

Report Coverage	Details
Market Revenues (2022)	USD Million
Market Base Year	2022
Market Forecast Period	2023-2030
Base Year & Forecast Units	Revenues (USD Million)
Market Segment	By Type, By application
Regional Coverage	Saudi Arabia
Companies Profiled	Amazon.com Inc, Noon Ad Holdings Ltd. (Noon E-Commerce), Jazp.com, Aliexpress., Namshi General Trading L.L.C, Carrefour among others; a total of 6 companies covered.
25% Free Customization Available	We will customize this report up to 25% as a free customization to address our client’s specific requirements

Market Segmentation