Ecommerce growth in Saudi Arabia- The Complete Guide

For many years, Saudi Arabia maintained a high e-commerce willingness index but did not experience rapid online retail expansion. To put this into context, KSA’s e-commerce penetration in 2017 was just 1.4% less than half of the United States’ level back in 2005. However, this narrative has shifted dramatically.

In the past few years, Saudi Arabia has witnessed exceptional digital acceleration, with e-commerce growth consistently exceeding double digits. As of July 2025, more than ten countries have internet penetration rates above 99%, meaning virtually all residents have constant online access largely driven by mobile connectivity. This includes nations like the UAE, Kuwait, Bahrain, Qatar, Saudi Arabia, Norway, and Denmark.

Saudi Arabia’s e-commerce market continues its upward trajectory, backed by a tech-savvy, digitally empowered population. As businesses fast-track their move to digital commerce, consulting a top e-commerce development company in Saudi Arabia has become crucial for staying competitive.

Consumer Behavior in KSA  

Saudi Arabia has one of the highest digital adoption rates globally. As of early 2025:

• Internet penetration stands at 99%, with 33.9 million active internet users.
• Mobile connectivity is exceptionally strong, with 48.1 million active cellular mobile connections, equivalent to 140% of the population.
• The number of mobile connections increased by 1.9 million (+4%) between 2024 and 2025.
• Internet users grew by 597,000 (+1.8%) during the same period.
• Social media usage is nearly universal, with 34.1 million active social media user identities, representing 99.6% of the population.

Saudis spend a significant amount of time online engaging in shopping, streaming, social platforms, and digital services. According to the latest digital economy insights, 63.7% of individuals in Saudi Arabia shop online, with a remarkable 93.1% of online purchases occurring on local websites, highlighting strong trust in local e-commerce platforms.

While smartphone usage remains dominant and continues to drive e-commerce growth in Saudi Arabia, consumers typically prefer mobile phones for everyday browsing but often turn to laptops or tablets when researching or purchasing high-value products.

Decoding Saudi Arabia’s Digital Consumer  

Despite differences in demographics and infrastructure, the Kingdom’s e-commerce evolution mirrors emerging digital markets such as India and Brazil.

Demographics, Motivators & Shopping Patterns  

Saudi Arabia stands out in the region due to its unique demographic profile. While digital adoption is widespread across age groups, the fastest growing online shopping segments include:

• Women
• Millennials
• Gen Z consumers

This growth aligns with socio-economic reforms that have expanded women’s participation in the workforce and public life, such as the easing of restrictions around driving, employment, and access to fitness and entertainment facilities.

Key motivators for online shopping include:

• Price advantages (especially for electronics and fashion)
• Service convenience (notably for groceries and personal care items)

Impulse driven purchases dominate categories like groceries and electronics, while fashion purchases are generally more planned.

Payment Preferences  

Payment behavior in Saudi Arabia continues to evolve:

• Cash on Delivery (COD) and digital payments remain highly popular among women and younger millennials.
• Credit cards are still favored by older users and more traditional shopper segments.

Although COD was historically dominant with 66% of transactions once depending on it digital payment adoption has materially strengthened due to fintech expansion, increased trust, and government-led digitization efforts.

Factors Driving E-commerce Growth in Saudi Arabia  

While electronics, fashion, and travel initially drove online commerce, the next phase of growth is expected to be led by:

• Fast-moving consumer goods (FMCG)
• Groceries
• Personal care products

Government Incentives Supporting E-commerce  

E-commerce is a cornerstone of Saudi Arabia’s Vision 2030 under the National Transformation Program. The government continues to invest heavily in infrastructure and logistics, including more than $100 billion allocated to logistics development, aimed at enabling nationwide e-commerce expansion.

The Vision 2030 framework also targets job creation, with the goal of generating more than one million new opportunities within the retail and digital sectors, attracting both regional and global brands.

Affluent, Tech-Savvy Population  

Saudi Arabia remains one of the world’s most digitally connected and socially engaged countries. High internet penetration, widespread smartphone usage, and strong social media engagement play an essential role in every stage of the e-commerce lifecycle from product discovery to purchase and post-purchase interaction.

Socio-economic Reforms  

Under the leadership of Crown Prince Mohammed bin Salman, the Kingdom has undergone major reforms aimed at:

• Diversifying the economy beyond oil
• Empowering women
• Enhancing quality of life
• Increasing workforce participation

These reforms have expanded the consumer base dramatically, adding millions of new active buyers to the digital marketplace.

Key Takeaways  

• E-commerce in Saudi Arabia is expanding at an exceptional pace, supported by 99% internet penetration, rising digital payments, and strong adoption among women and young consumers.
• Discounts, promotions, and competitive pricing remain major catalysts for online purchases, especially in electronics and fashion.
• Understanding the nuanced behaviors of Saudi shoppers is essential. Categories like groceries and electronics see impulse buying, while fashion purchases are more deliberate.
• Businesses must align with Saudi Arabia’s evolving digital ecosystem and leverage technology to remain competitive.

For seamless, future-ready digital transformation and e-commerce development in Jeddah, organizations can connect with Ewaantech, a trusted technology partner in the region.