Saudi Arabia’s e-commerce market to triple by 2033
AI, digital payments, and youth drive Kingdom’s online retail growth, with sales projected to reach $708.7 billion within eight years
RIYADH, Saudi Arabia (MNTV) — Saudi Arabia’s e-commerce sector is projected to expand nearly threefold to $708.7 billion by 2033, fueled by artificial intelligence, digital payments, and a young tech-savvy population, according to new research by IMARC.
With 98 percent of Saudis online and among the highest global smartphone penetration rates, the Kingdom has the ideal environment for digital retail growth, reported Arab News.
The COVID-19 pandemic accelerated this shift, but experts note the momentum has only intensified since.
Government backing has also been crucial. Vision 2030 reforms and the 2019 e-commerce law have strengthened consumer confidence and simplified regulations, creating a secure ecosystem for digital business.
More than half of Saudis are under 30, forming a youthful consumer base that increasingly favors the convenience and variety of online shopping.
“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 the market is expected to grow at 12 to 14 percent annually over the next five years.
Digital payments and mobile commerce reshape consumer habits
Mobile commerce has emerged as the dominant driver, with smartphones now the primary shopping tool. Social media platforms have become marketplaces where over 35 million users discover products, follow influencers, and complete purchases directly through apps.
Live shopping events and instant checkout features are increasingly shaping buying patterns, particularly among Gen Z and millennials.
Payment preferences are also evolving. The digital payments market reached $1.16 billion in 2024, supported by mobile wallets, buy-now-pay-later services, and NFC-enabled cards.
Saudi Arabia’s national payment network, Mada, remains central, while Apple Pay has gained wide popularity. According to the Saudi Central Bank, e-commerce transactions through Mada cards totaled $52.6 billion in 2024, marking a 25.8 percent year-on-year increase.
Artificial intelligence is transforming shopping by providing personalized recommendations, powering chatbots for customer service, and enabling augmented reality tools that let consumers preview products before buying.
Mohamed El-Ansari, CEO of Trendyol Gulf, emphasized that localization strategies tailored to Saudi consumers — from modest fashion edits during Ramadan to premium packaging for gifting — are building trust and loyalty.
Beyond retail, the sector is delivering broader economic gains. Online sales represented just 6 percent of the $92.6 billion retail market in 2023, but spillover effects boosted non-oil GDP by 4.2 percent in 2024, supporting logistics, warehousing, and tech startups.
Sustainability is also advancing, with Riyadh targeting 30 percent of vehicles to be electric by 2030 alongside AI-driven logistics optimization.
As Saudi Arabia deepens its digital transformation under Vision 2030, experts suggest the $708 billion forecast may prove conservative, given the pace of innovation and the growing consumer embrace of e-commerce.
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