Saudi Arabia Leads 93% of Gulf E-Commerce Investment

Saudi Arabia has become the dominant e-commerce market in the Gulf, capturing about 93% of Gulf Cooperation Council e-commerce investments by 2025 — up sharply from 46% in 2021 — as online retail and delivery infrastructure expand across the Kingdom.

E-commerce and marketplace startups in the Kingdom attracted around USD 384 million in funding across 36 deals, accounting for 17.1% of total startup funding, with an average deal size of USD 10.7 million. Leading business-to-business platforms such as Sary and Nana are among the sector's most prominent players. Across the wider Middle East, e-commerce raised roughly USD 494 million in venture funding — the second most funded sector after fintech — with Saudi Arabia claiming the largest national share.

The picture in early 2026 was more subdued. Overall venture capital funding in the Kingdom fell 74% to about USD 219 million in the first half of the year, while e-commerce funding specifically dropped 98% to around USD 7 million, as no mega-rounds above USD 100 million were closed in the period.

Logistics driving long-term growth

The engine behind the sector remains strong. Saudi Arabia's e-commerce logistics market was valued at about USD 4.58 billion in 2024 and is projected to reach roughly USD 13.67 billion by 2033, growing at about 12.9% a year. E-commerce logistics processed around 118 million orders in the first quarter of 2026, up 49% year-on-year, with الرياض generating about 44–45% of national order volume.

Under رؤية السعودية 2030, the Kingdom is executing a transport and logistics program with an infrastructure pipeline of roughly SAR 500 billion across rail, road, aviation, ports, and logistics zones. Transport and logistics investments this decade already exceed about SAR 120 billion, with a focus on digitizing supply chains — including digital customs and corridor platforms that support last-mile delivery. For residents, that translates into faster deliveries, more choice, and expanding job opportunities across retail and logistics.

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