eCommerce market in Saudi Arabia

Saudi Arabia is the 29th largest market for eCommerce with a predicted revenue of US$14,159.9 million by 2024, placing it ahead of Austria. Revenue is expected to show a compound annual growth rate (CAGR 2024-2028) of 10.1%, resulting in a projected market volume of US$20,808.8 million by 2028. With an expected increase of 13.0% in 2024, the Saudi Arabian eCommerce market contributed to the worldwide growth rate of 10.4% in 2024. Like in Saudi Arabia, global eCommerce sales are expected to increase over the next years. Seven markets are considered by ECDB within the Saudi Arabian eCommerce market. Hobby & Leisure is the largest market and accounts for 23.6% of the Saudi Arabian eCommerce revenue. It is followed by Electronics with 22.5%, Fashion with 17.8%, Furniture & Homeware with 11.8%, Care Products with 8.8%, DIY with 8.0%, and Grocery with the remaining 7.5%.

The online share refers to the proportion of the retail volume that is transacted via the Internet. It includes purchases via desktop PC, tablet or smartphone, both via website or app. Only retail of physical goods is taken into account. In the Saudi Arabian retail market, the online share is 8.0% and will increase by an average of 8.9% to 11.2% by 2028.

The biggest player in the Saudi Arabian eCommerce market is jarir.com. The store had a revenue of US$452.8 million in 2023. Store rankings include every store that generates revenue in Saudi Arabia. These stores can either have a national focus and only sell in their main country or operate on a global scale. For this evaluation, only revenue created in Saudi Arabia was considered.

With 96.1% VISA the most commonly offered payment method of all online stores in the Saudi Arabian eCommerce market in 2023. Like VISA Mastercard with a share of 94.1% and American Express with a share of 35.3% the payment type Cards is the most common used by online retailers in in the Saudi Arabian eCommerce market in 2023. Other commonly used payment methods in that market are mada (E-wallets) with 76.5% and Cash on delivery (Cash on delivery) with 56.9% of stores offering that payment method to the clients.