Saudi Arabia’s e-commerce boom showcases its leaders’ commitment to technological advancement, aiming to enhance remote shopping and cashless payments. This aligns with the country’s digitization efforts to modernize and diversify its economy.
The General Authority for Small and Medium Enterprises (Monsha’at) recently released a report titled ‘Small and Medium Enterprises and Promising Prospects for E-Commerce’, highlighting significant progress in this sector. The report reveals that e-commerce project financing reached 1.6 million rials (383 million euros) last year, with the number of e-commerce platform users expected to hit 34.5 million by 2025.
Key sectors in Saudi e-commerce include online sales platforms, digital marketing, logistics, and payment systems. The market is projected to reach EUR 12.222 billion by year’s end, growing annually at 15%, potentially reaching EUR 24.596 billion by 2029.
Globally, there are around 1.8 billion e-commerce users, with a trade volume of EUR 26 billion. In Saudi Arabia, most payments are expected to be electronic, with 7.4% in real-time and 48.6% through other digital methods. A recent report ranked Saudi Arabia ninth in smartphone adoption, with 80% of consumers using mobile wallets.
E-commerce has greatly impacted emerging businesses by reducing entry barriers, operational costs, and expanding customer reach. However, challenges remain, including high competition, inventory management, and service quality.
Monsha’at’s report features insights from industry experts like Muhannad Al-Mulhim, who emphasized the e-commerce council’s role in helping companies grow and innovate. Companies like Zid, founded in 2017, aid merchants in modern retail transitions. CEO Mazen Al-Darrab highlights Zid’s role in facilitating collaborations and seizing market opportunities.
Floward, specializing in flowers and gifts, has expanded to nine countries and 40 cities, including London. Meanwhile, Trudoo Smart Shipping Solutions shared its early challenges and future aspirations in the logistics market.
Since 2022, PayTabs has been enhancing e-payment experiences in various markets, leveraging expertise to attract consumers. Partnering with Swiss firm Netcetera, PayTabs ensures secure online payments, preventing fraud and facilitating transactions.
Founded by Abdulaziz Al-Jouf, PayTabs has been vital in the payments ecosystem for over a decade, offering solutions to SMEs, banks, and retailers across the Middle East, Africa, and South Asia, with plans for further expansion.
With offices in Saudi Arabia, UAE, and Egypt, PayTabs boosts regional digital payment competitiveness, prioritizing secure electronic transactions as a PCI Security Standards Council certified provider.
Saudi Arabia’s e-commerce efforts are transforming its economic landscape, positioning its businesses as key players in the global digital market. Supported by advanced technology and government backing, Saudi SMEs are poised to compete and thrive internationally.