Saudi Arabia is making expansive plans to become a major national, regional, and international market for e-commerce. This is despite multiple access-to-market issues and other barriers
Saudi e-commerce topped $10 billion in revenue in 2023, making the country the world’s 28th largest online market. It’s also on par with its regional neighbor, the United Arab Emirates, according to a new regional report from Agility Logistics.
Online revenue growth in Saudi Arabia is forecasted to expand at 13.5% annually through 2027, much faster than the global growth average of 11.2%. Meanwhile, e-commerce sales are expected to reach and exceed $30 billion by 2027 and $44 billion by 2030.
In key areas such as investment, logistics capacity, and shipping volumes, Saudi Arabia is set to establish itself as the region’s new e-commerce leader, according to the report’s authors.
A significant push and subsidies for national infrastructure development are tied to high-level ambitions for e-commerce growth.
Currently, the largest category in the Saudi Arabian e-commerce market is Hobby & Leisure, which accounts for 23.6% of the 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%.
Also, the e-commerce net sales of the top 100 Saudi Arabian online stores accounted for about US$1,103 million in 2021.
Namshi.com heads the list of the top online stores by net sales in Saudi Arabia in 2021. Other large and prominent players in the Saudi Arabian market are Amazon.sa, jarir.com, extra.com and noon.com.
The top 5 online stores in Saudi Arabia accounted for 48% of the net sales of the top 100 online stores in 2021. This report provides a comprehensive overview of the Saudi Arabian eCommerce market, including consumer insights, market trends, and top store analyses.
