E-commerce platform users in Saudi Arabia have grown by 42 percent from 2019 to 2024. The Kingdom’s e-commerce revenues are projected to reach SR260 billion by 2025. The Saudi Small and Medium Enterprises General Authority (Monsha’at) revealed these insights in a recent report.
Significant Contributions to GDP
The report predicts that e-commerce will contribute 12 percent to Saudi Arabia’s GDP next year. In 2023, financing for e-commerce projects reached SR1.6 billion. Globally, Saudi Arabia ranked 8th in e-commerce among the top 10 developing economies.
Expanding E-Commerce Ecosystem
The Saudi Business Center documented 26,300 freelance document holders and 16,500 commercial register holders in 2023. The number of e-stores is expected to reach 42,900 by next year. In 2022, there were 191 shipping and delivery service providers. Meanwhile, imported products accounted for 35.44 percent of the e-commerce market in 2023.
Opportunities and Challenges
E-commerce offers significant opportunities for growth, including reducing operation costs and reaching a wide customer base. However, challenges such as competition, limited resources, and inventory management remain obstacles for businesses in this sector.
Monsha’at’s Awareness Campaign
Monsha’at launched a campaign titled “The Market is Your Game” to raise awareness about e-commerce. The campaign, involving both public and private sector entities, encourages entrepreneurs to explore and benefit from e-commerce. It also aims to inform them about the services Monsha’at and other entities offer to support e-commerce investors.
