Saudi Arabia’s booming e-commerce market is set to grow to 33.6 million users!

Recent reports from international media sources indicate a robust expansion in Saudi Arabia’s e-commerce landscape. Forecasts by the United States International Trade Administration suggest a surge in the kingdom’s e-commerce user base, with projections hitting 33.6 million by 2024—an impressive 42% leap from 2019 figures.

The Saudi Central Bank has shared encouraging data, highlighting that e-commerce sales via Mada cards soared to SAR 14.11 billion (USD 3.76 billion) in February 2024, marking a 25% year-over-year growth. Transaction volume for the month also spiked, with a 44% increase from the previous year, totaling over 84 million transactions.

A commercial guide from the United States International Trade Administration reveals a near 60% uptick in online sales across various categories within the past three years in Saudi Arabia. Media products, apparel, and footwear sectors have enjoyed the most pronounced growth. Moreover, spending per capita among Saudi e-commerce shoppers has swelled by over 50%.

In a strategic push to bolster the digital economy’s contribution to Saudi Arabia’s GDP, the government has rolled out a series of initiatives fostering a fertile environment for e-commerce growth. In 2023, Jarir emerged as a frontrunner among Saudi online retailers, boasting revenues of USD 452.8 million. Nahdi Online and Amazon Saudi Arabia followed closely with USD 330.1 million and USD 328.5 million in sales, respectively. Collectively, these e-commerce giants command a 38.7% market share within Saudi Arabia’s top 100 e-commerce entities.

Deloitte, a leading market consultancy, anticipates a continued upward trajectory for Saudi Arabia’s e-commerce sector, with market valuation poised to hit USD 23.46 billion by 2027. The forecast also suggests a swell in e-commerce users to 34.5 million by 2025, with penetration rates projected to climb from 66.7% in 2023 to an estimated 74.7% by 2027.

For Amazon sellers looking to tap into this burgeoning market, these insights underscore the vast potential within the Saudi e-commerce sphere. With a growing user base, increased spending power, and a government-backed digital economy, Saudi Arabia presents a golden opportunity for Amazon sellers to expand their reach and thrive in a dynamic and rapidly evolving marketplace.

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