Saudi E-Commerce Set to Hit $31.3 Billion in 2026

New market data points to steady growth across Saudi Arabia's online retail and digital payments sector heading into 2026, with the e-commerce market estimated at about USD 31.3 billion in 2026, up from roughly USD 28.0 billion in 2025. The sector is projected to expand at a compound annual rate of about 11–12% through 2031.

Broader digital commerce — which includes services, food delivery, travel, and business-to-business online channels — sits in the USD 27–31 billion range for 2025, while pure business-to-consumer online retail of goods is estimated at around USD 16–20 billion. Online grocery is a fast-moving segment, valued at about USD 1.8 billion in 2025 and USD 2.1 billion in 2026, with projected growth of roughly 18% a year to reach about USD 5.7 billion by 2032.

Electronic payments keep rising

Electronic payments now account for 85% of total retail payments in 2025, up from 79% in 2024. That translates into about 14.6 billion electronic transactions in 2025, compared with 12.6 billion the year before. National payment systems data show continued growth in transaction volumes and a rising share of electronic payments within total retail spending. The digital payments service-revenue market is estimated at about USD 1.3 billion in 2025, rising to around USD 1.48 billion in 2026, with the electronic retail payment share moving toward 88%.

For shoppers and merchants, cards remain central: credit and debit cards make up about 42–43% of online payment mode share, while digital wallets are the fastest-growing option. On the cost side, domestic mada debit acquiring is typically around 1.5% plus SAR 1.00 per transaction — lower than standard credit card rates. Payment gateways serving Saudi merchants generally charge mada fees of 1.0–1.75% plus SAR 0.5–1.0, credit card fees around 2.2–3.0% plus SAR 0.5–1.0, with settlement usually between T+1 and T+7.

For residents and expats across the Kingdom, the numbers reflect an increasingly cashless everyday experience — from grocery deliveries to online shopping — and a widening range of payment choices at checkout.

---

Stay updated with the latest news, events, sports updates, business insights, real estate and lifestyle stories on Saudi Living — the leading online platform for residents, expats, and visitors in Saudi Arabia.

Follow Saudi Living for daily updates:

• Instagram - @saudiliving
• X - @saudiliving
• Facebook - @saudiliving
• YouTube - @saudiliving