Describes how widely e-Commerce is used, the primary sectors that sell through e-commerce, and how much product/service in each sector is sold through e-commerce versus brick-and-mortar retail. Includes what a company needs to know to take advantage of e-commerce in the local market and , reputable, prominent B2B websites.
Last Published: 7/18/2017
Electronic Commerce in Saudi Arabia is projected to reach $5.7 billion in 2017, as increasing numbers of Saudis gain access to the Internet. There are nearly 70 million website hits per month and user growth continues to expand at an estimated 9.3 percent per annum. Current e-commerce market share data show that, with a 13 percent market share, is the largest e-commerce entity in the Kingdom. (8 percent), Namshi (7 percent), and MarkaVIP (5 percent) Fashion, with an estimated market volume of $1.7 billion, constitutes the largest segment.

E-commerce faces a number of challenges to growth. Saudi consumers favor cash payments on delivery rather than credit card payments at the point of sale on the Internet. Saudi e-commerce business-to-consumer (b2c) websites must overcome this challenge in order to significantly increase the e-commerce market share. Payment gateways that encourage electronic payment are being developed to address this issue. With Saudi Arabia being the second largest global market for spam e-mail, improved cyber security is necessary to engender greater consumer trust in e-commerce transactions.

Almost half of all Saudi Internet users report purchasing products and services online and through their mobile handsets. The SAG has passed a number of regulations to control and monitor electronic transactions and combat cybercrime. Additionally, the government has allocated close to $800 million to implement an e-Government Initiative. In order to drive the e-Government Initiative forward, the YESSER program (meaning “to facilitate” in Arabic) was launched by the government. The initiative is expected to develop the first National e-Government Strategy and Action Plan within the next five years. The YESSER program’s role is to enable the implementation of individual e- government services by ministries and other government agencies and to provide best practice in implementing pilot services.

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Saudi Arabia eCommerce Industry Trade Development and Promotion eCommerce