Saudi Arabia wants to be known as more than one of the world’s biggest energy producers. As the country seeks to diversify its economy beyond primarily oil and gas exports, Saudi Arabia now intends to build an expansive national and international ecommerce market.
Saudi Arabia’s ecommerce expansion
“As the second-highest venture capital-funded sector in Saudi Arabia, e-commerce is booming, but there’s still room for growth,” according to The General Authority for Small and Medium Enterprises (Monsha’at), a government agency in the kingdom. “Compared to leading markets, where online sales account for 18% of retail, ecommerce is relatively untapped in the kingdom.”
Additionally, the size of the Saudi B2C market is expected to reach $70 billion by next year and is expected to account for about 12% of the country’s gross domestic product.
Other growth metrics include:
- The number of Saudi Arabia ecommerce patrons will total 34.5 million by 2025.
- There are 42,900 online stores and 191 shipping and delivery services providers.
- The number of fulfillment centers totals 14,000.
- Venture capitalists invested $428 million in Saudi Arabia ecommerce business ventures in 2023.
- 35% of all products were global imports.
“Traditional sectors still have significant opportunities to transition fully or partially to e-commerce models,” said Muhannad Al-Mulhim, a consultant with the Ministry of Commerce. “There are also numerous opportunities when it comes to automation and artificial intelligence (AI).”
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