Sign in
Saudi-based e-commerce players locked in USD 428 mn in venture capital (VC) funding last year, making it the second-highest VC funded sector in the Kingdom, according to a report (pdf) by the General Authority for Small and Medium Enterprises (Monsha’at). The domestic e-commerce market also ranked 8th among all developing economies in 2023, despite remaining “relatively untapped,” according to the report.
E-commerce revenues are forecasted to hit SAR 211 bn (USD 56 bn) this year, and SAR 258.9 bn (USD 69 bn) in 2025, the report reads. E-commerce users are expected to hit 34.5 mn in 2025 — up 42% from their levels in 2019.
Imports aren’t leading the way: Only 35% of products bought online last year were imported, according to the report.
Market enablers in numbers: As of 2023, the Kingdom had 42.9k accessible online shops, with a total of 14k warehouses and storage spaces. The Saudi Business Center issued 26.3k verified e-commerce freelance certificates, while commercial registrations for businesses operating in the sector came in at 16.6k. Meanwhile, we had 191 shipping and delivery service providers as of 2022.
The outlook: The industry is expected to account for 12% of total GDP by next year, up from 4% in 2020. The sector has been growing at a compound annual growth rate (CGAR) of 15% since 2020 and is set to continue through to 2025.
