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Key insights
- Saudi Arabia's Economic Transformation: Young Consumers Fuel Surging Domestic Demand
Saudi Arabia's GDP hit $1.07 trillion in 2023, ranking first in the Middle East. With its young population and vast consumption potential, the government is pushing economic diversification through "Vision 2030", transitioning from an oil-dependent kingdom to a consumer-led emerging market.
- E-commerce Spending Surges with Singapore-Level Growth
With nearly 100% internet access, improved logistics, and government backing, e-commerce has become the core growth engine of Saudi retail growth. Per capita online spending has increased by over 50% in the past three years and is expected to reach $1,369.83 by 2025—on par with Singapore. Local platforms such as Salla and Zid are rising rapidly, backed by increasing international investment. In the first half of 2023, the number of licensed e-commerce platforms and stores exceeded 30,000, representing a nearly 23% increase over the same period in 2020.
- Eid al-Fitr Shopping Spree Boosts Premium International Brands
Saudi consumers show a strong preference for international brands, and holiday periods drive significant spending spikes, especially during key public holiday periods such as Eid al-Fitr. Amazon's 2024 research shows 62% of Saudi consumers spend more during the holidays. At the same time, women's purchasing power continues to rise, playing an increasingly critical role in household spending. Middle-to-high-income groups are also increasingly interested in premium, organic, and quality-driven products.
- BNPL as a Market Standard: How Localised Payment Integration Drives Saudi E-Commerce Growth
The absence of preferred payment methods and cumbersome checkout processes remain key pain points for Saudi online shoppers. While credit cards are still the main online payment method in 2023, Buy Now, Pay Later (BNPL) services have rapidly gained traction, emerging as a crucial solution for flexible payment needs, and now account for 20% of transactions on some platforms. Local BNPL providers Tabby and Tamara have greatly improved conversion rates for high-ticket purchases by leveraging strong consumer trust. For cross-border merchants, promptly integrating local payment methods such as BNPL is not only an essential step for optimising the checkout experience, but a strategic move to enhance localised market competitiveness. Antom's upcoming integration with Tabby and Tamara will empower merchants to swiftly adapt to Saudi Arabia's payment ecosystem.
Digital transformation is driving e-commerce expansion in Saudi Arabia
Saudi Arabia is quickly emerging as one of the most promising e-commerce markets in the Middle East, driven by rapid digital transformation and a young, tech-savvy population. As the largest economy in the region and a leader in economic diversification, Saudi Arabia offers cross-border merchants a strategic gateway to tap into a high-growth, high-potential market.
In this article, we'll break down everything you need to know to succeed in Saudi Arabia's evolving e-commerce market.
Market Overview
Saudi Arabia has a population of 37.21 million people, with a notably higher proportion of men. 73% are of working age, between 15 and 64 years old, and the official language is Arabic. Saudi Arabia's distinctive gender demographics mainly stem from its reliance on male-dominated foreign labor in industries such as construction and oil.
Saudi Arabia's GDP reached $1.07 trillion in 2023, ranking first in the Middle East and 19th globally, with a per capita GDP of $32,094. In recent years, the Saudi e-commerce market has demonstrated steady growth, with the number of online shoppers reaching 10.2 million users in 2023, and projected to reach 12.1 million by 2025. Statista forecasts a CAGR of 9.91% from 2025 to 2029.
In 2023, Saudi Arabia's debit card penetration reached 72.19%, while credit card penetration stood at 27.74%.
Having reviewed Saudi Arabia's market profile, let's now examine its economic landscape.
Economic Overview
Saudi Arabia is one of the major economies in the Middle East and the largest economy with the Gulf Cooperation Council (GCC). The country benefits from a notably young demographic structure, with only 2.8% of the population aged 65 and over, significantly lower than China (14.2%) and Japan (11.3%).
The service and industrial sectors dominate Saudi Arabia's economic structure. The 2023 unemployment rate of 3.8% aligns with major global economies, demonstrating the stability of its labour market and economic resilience.
In 2023, Saudi Arabia's imports reached $211.03 billion, with machinery and nuclear reactor equipment as major import categories. Data from 2022 showed that China was Saudi Arabia's most important import partner, accounting for 22% of total imports.
That's an overview of Saudi Arabia. Next, let's delve deeper into the consumption patterns of Saudi consumers.
