Saudi Arabia’s E-commerce Market Set to Triple by 2033

Saudi Arabia’s e-commerce sector is on track for explosive growth, with the market projected to reach $708.7 billion by 2033 — nearly three times its current size, according to a new report by market research firm IMARC.

The expansion is being driven by rapid digital adoption, widespread internet and smartphone penetration, and structural reforms under the Kingdom’s Vision 2030 strategy. More than 98 percent of Saudis are now online, while mobile commerce dominates shopping behavior, supported by frictionless digital payments and the rise of social commerce.

The COVID-19 pandemic acted as a catalyst for digital retail, accelerating a shift that has only gained momentum in recent years. The government’s 2019 e-commerce law, coupled with Vision 2030 reforms, has boosted consumer trust and created a favorable environment for online businesses.

“Saudi Arabia’s e-commerce surge is underpinned by proactive government support and a tech-savvy infrastructure that outpaces many peers,” said Mohammed Dhedhi, partner at Kearney’s consumer and retail practice. He added that new fulfillment centers, digital payment options, and improved logistics have removed barriers that hinder growth in other emerging markets.

Social media platforms are increasingly central to the shopping experience, with more than 35 million Saudis discovering products through influencers and purchasing directly through apps. Mohamed El-Ansari, CEO of Trendyol Gulf, noted that younger generations are leading this transformation. “For Gen Z and millennials, the shopping journey often starts with a scroll, and inspiration can turn into intent in seconds,” he said.

Mobile wallets, buy now-pay later options, and the national payment system, Mada, have also reshaped consumer behavior. In 2024, e-commerce sales using Mada cards reached SR197.42 billion ($52.64 billion), up more than 25 percent year-on-year, according to Saudi Arabia’s central bank. Apple Pay has also become widely popular across the Kingdom.

Electronics remain the largest online retail category, valued at $13.5 billion in 2024, but new growth areas are emerging. Online grocery services, healthcare platforms, and fashion retail are expanding rapidly, driven by demand for convenience and enhanced digital experiences such as virtual fittings and live shopping.

Small and medium enterprises are benefiting from low barriers to entry and government support programs, with many partnering with international platforms to access wider markets. According to Dhedhi, such collaborations help local businesses compete with global players by leveraging advanced logistics and marketing tools.

The sector’s impact extends well beyond retail. E-commerce is creating jobs, stimulating logistics and warehousing demand, and supporting Saudi Arabia’s push to diversify its economy away from oil. Retail-led non-oil GDP grew 4.2 percent in 2024, with online sales emerging as a key driver.

As technologies such as artificial intelligence and augmented reality continue to enhance personalization and convenience, analysts suggest that even the $708 billion forecast could prove conservative. With one of the youngest, most connected populations in the world, Saudi Arabia’s digital retail revolution shows no sign of slowing.