In light of Saudi Vision 2030 and ambitious digital transformation plans, the future of e-commerce in Saudi Arabia looks extremely promising. This industry is experiencing rapid growth and attracting significant investments from the private and government sectors. We will discuss the growth of e-commerce investment in Saudi Arabia and the importance of investing in e-commerce.

The most prominent factors driving the growth of e-commerce investment in Saudi Arabia:

1- Digital transformation: The Saudi government seeks to stimulate digital transformation across various sectors, providing the infrastructure and environment conducive to the flourishing of e-commerce.

2—Increased Internet and smartphone penetration: 98% of the Saudi population has access to the Internet, while 91% use smartphones, forming a broad base of online shoppers.

3- High adoption rates of e-commerce: Studies have shown that 63% of Saudi consumers prefer online shopping over traditional stores.

4- Focus on entrepreneurship and startups: The Kingdom provides incentives and support programs for e-commerce entrepreneurs, which enhances the development of innovative solutions and services.

5- Expanding logistics infrastructure: The government and the private sector are investing in developing logistics infrastructure to facilitate shipping and delivery operations.

These factors pave the way for a promising future for e-commerce in Saudi Arabia. The market is expected to reach $33.6 billion by 2025, making the Kingdom a prime destination for investment in this sector in the region.

Read also: The future of e-commerce in Saudi Arabia is bright 2025.

Investing in e-commerce

  • Growth Strategies: Providing customized strategies for e-commerce business growth, including improving conversion rates and increasing average order value.
  • Customer Service: Improve customer service through live chat, responding to inquiries quickly and efficiently.
  • Creating e-stores: Designing and developing integrated e-stores that support a smooth and convenient shopping experience.

Khutana can be a powerful partner for businesses seeking to enhance their digital presence and increase online sales. By providing a variety of services focused on improving digital performance and increasing brand awareness, businesses can achieve sustainable growth and long-term success.

Statistics on the growth of investment in e-commerce in Saudi Arabia

According to a report issued by Mubasher, e-commerce transactions in Saudi Arabia grew by 17% during the first quarter of 2024 compared to the same period the previous year. Here are the most important statistics mentioned in the report:

  • Factors such as increased internet and smartphone usage, improved digital infrastructure, and a rising standard of living have contributed to the growth of e-commerce in the Kingdom.
  • Saudi Arabia is one of the region’s leading markets for e-commerce, with expectations that this sector will continue to grow in the coming years.
  • This strong growth in the e-commerce sector in Saudi Arabia is expected to continue in the coming years, positively impacting the national economy.
  • E-commerce transactions in Saudi Arabia grew by 17% in the first quarter of 2024 compared to the first quarter of 2023.
  • This growth comes as part of the ongoing expansion of the e-commerce sector in the Kingdom.

You can read: Saudi Arabia’s Public Investment Fund in e-commerce

Successful examples of investing in e-commerce in Saudi Arabia

Saudi Arabia is experiencing significant growth in e-commerce, with numerous successful examples illustrating this growth. Here are some notable examples:

Noon

Founded in 2016, it has become one of the largest e-commerce platforms in the region, offering a wide range of products, from electronics to clothing and household products.

Souq.com

Before its acquisition by Amazon in 2017, Souq.com was one of the largest e-commerce sites in the Middle East. It continues to operate under the Amazon brand and offers a diverse range of products.

Jarir

Jarir is not just a bookstore; it has become one of the largest online stores in Saudi Arabia, offering a diverse range of products including books, electronics, and stationery.

Extra

Specializing in online sales of electronics and home appliances, it offers premium services such as fast delivery and extended warranties.

Bath & Body Works

Although it’s a global company, its online branch in Saudi Arabia has been a huge success, offering a wide range of body care and fragrance products.

Mamas & Papas

Focusing on baby and child products, they are extremely popular among mothers in Saudi Arabia. These examples reflect the significant expansion of e-commerce in the Saudi market, with more consumers relying on online shopping.

The importance of investing in e-commerce in Saudi Arabia

Investing in e-commerce in Saudi Arabia is of great importance for several reasons related to the Kingdom’s economic, technological, and social development. Here are some points that highlight the importance of this investment:

Market growth

Saudi Arabia is one of the largest markets in the Middle East in terms of population and purchasing power. With the growing number of internet and smartphone users, the number of online shoppers is growing dramatically.

Government support

The Saudi government strongly supports the e-commerce sector as part of Vision 2030, which aims to diversify the economy and reduce dependence on oil. This support is manifested in legislative facilitation and advanced infrastructure.

Increased demand for digital services

As consumer habits change, the need for convenient and fast shopping solutions grows. E-commerce meets these needs by offering a variety of products and fast delivery services.

Low operating cost

Compared to traditional commerce, setting up an online store requires significantly less cost than setting up a physical store. This allows entrepreneurs to offer their products and services at competitive prices.

International expansion of e-commerce

It allows Saudi companies to easily access global markets. Businesses can sell their products and services to customers across borders without the need for a physical presence in those countries. Read about how to use e-commerce platforms for online marketing.

Digital transformation

With the Kingdom undergoing rapid digital transformation, investing in e-commerce enhances this transformation and enables companies to be part of the global digital economy.

Innovation and Diversity E-Commerce

It encourages innovation and the introduction of new and innovative products and services to the market. Small and medium-sized enterprises (SMEs) can use e-commerce to offer specialized and unique products. Investing in e-commerce represents a golden opportunity to boost the local economy, improve the consumer experience, and support entrepreneurs in the Kingdom of Saudi Arabia.

Khutana E- Marketing Services, Search Engine Optimization, and E-Commerce Investment

Khutana, a digital marketing, search engine optimization (SEO), and e-commerce investment company, is an ideal model for companies seeking to support business growth in the digital age. Here’s a look at the services a company like Khutana can offer:

E-marketing services from Khutana E-marketing

1- Managing digital marketing campaigns from khutana e-marketing efforts:

  • Social Media Advertising: Managing campaigns on platforms like Facebook, Instagram, Twitter, and LinkedIn to increase brand awareness and engage with your target audience.
  • Google Ads: Design and manage effective search and paid advertising campaigns.

2- Email marketing from khutana e-marketing:

Design and implement email campaigns targeting specific customers and providing valuable content that enhances the customer-company relationship.

3- Data analysis and reports from khutana e-marketing:

Provide comprehensive reports that demonstrate the performance of marketing campaigns and provide actionable insights to improve strategies.

Search Engine Optimization (SEO) Services from Khutana E-Marketing

Site analysis from khutana e-marketing:

Conduct a comprehensive website analysis to identify strengths and weaknesses in SEO performance.

Content optimization from khutana e-marketing

Writing optimized content based on targeted keywords that enhances the site’s visibility in search results.

A strategy for building high-quality links to your site to increase trust and authority with search engines.

Improving User Experience (UX/UI) from khutana e-marketing:

Improve website design and user experience to ensure visitors stay longer and achieve their goals easily.

There’s no doubt that strategic decisions and significant investments in digital transformation will enable Saudi Arabia to achieve regional leadership in e-commerce in the coming years. Share your thoughts and opinions on this article in the comments.

Questions about the article: Growth of E-Commerce Investment in Saudi Arabia 2025


What is the size of the e-commerce market in Saudi Arabia?

The e-commerce market in Saudi Arabia was estimated to be worth around US$15 billion in 2024 and is expected to reach US$29 billion by 2030.


What are the fastest growing businesses in Saudi Arabia?

The construction sector has become one of the leading industries in the market, with significant growth.


What is the trend of online shopping in Saudi Arabia?

69% of Saudi consumers purchased at least one product online in 2021. Fashion is the largest sector in Saudi Arabia, representing 32% of total e-commerce revenue in the Kingdom.


Which country is the number one in e-commerce?

China is the world’s No. 1 e-commerce market, by a very large margin, generating over $3 trillion annually in e-commerce sales, representing more than half of all online sales worldwide.