Saudi Arabia Leads 93% of Gulf E-commerce Investment

Saudi Arabia has captured about 93% of total e-commerce investments across the Gulf Cooperation Council in 2025, a sharp rise from roughly 46% in 2021, confirming the Kingdom's position as the region's leading online retail hub.

The Kingdom now accounts for around 34% of e-commerce revenue across the Middle East and Africa, making it the single largest market in the wider region, and its share exceeds 40% of the total Arab online commerce market. E-commerce penetration in Gulf retail stands at roughly 11% of total retail sales, with Saudi Arabia positioned as the primary hub.

Estimates of the Saudi e-commerce market for 2025 vary by definition, ranging from about USD 24.6 to 31.3 billion on broad measures that include B2C, B2B, marketplaces, food delivery and digital merchant transactions, and near USD 16.3 billion for narrower consumer-focused online retail, projected to reach about USD 36.6 billion by 2032. In local currency, the market is estimated at roughly SAR 80 to 120 billion for 2025.

Business-to-consumer transactions dominate, holding around 73–75% of revenue share, driven by digital grocery, fashion and electronics. Riyadh leads with about 35–40% of national e-commerce revenue, while the Eastern Province is identified as the fastest-growing region through 2031–2032. Online grocery alone reached about USD 1.79 billion in 2025, with app-based platforms holding around 68% of the segment.

Why it matters

E-commerce has grown from under 5% of Saudi retail in 2019 to roughly 10–12% by 2024, with long-term targets pointing to around 25% by 2035. Recent investment is concentrated in logistics, fulfillment centers, digital payments and supporting infrastructure, backed by national development and sovereign investment programs. For residents and businesses, that means faster deliveries, wider product choice and a steadily expanding digital shopping ecosystem.

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