Saudi Arabia’s e-commerce industry has experienced significant growth, with an annual growth rate of over 32% in the first quarter of 2023
Saudi Arabia's e-commerce industry grew by over 32% in Q1 2023
The electronic commerce industry in Saudi Arabia has shown tremendous growth in the past year. Source: Arabian Business Development of Saudi Arabian E-commerce Revenue Saudi Arabia is the 27th largest e-commerce market, and according to ecommerceDB research, it is estimated that e-commerce revenue will reach 11.977 billion US dollars by 2023, with a compound annual growth rate (CAGR 2023-2027) of 13.9%. It is expected that the market size will reach 20.1558 billion US dollars by 2027. Saudi Arabia’s e-commerce market is expected to grow by 21.4% in 2023, contributing to 17.0% of the global growth rate in 2023. In Saudi Arabia’s e-commerce market, fashion is the largest market, accounting for 33.9% of Saudi Arabia’s e-commerce revenue. This is followed by electronics and media (26.9%), food and personal care (23.0%), toys, hobbies, and DIY (9.2%), and furniture and appliances (7.0%). Growth of Saudi Arabian E-commerce Industry The e-commerce industry in Saudi Arabia has shown significant growth, with an annual growth rate of over 32% in the first quarter of 2023. During this period, the number of commercial registrations issued reached 4,093, compared to 3,499 in the first quarter of 2022. The development of e-commerce business systems is one of the goals of the national transformation plan, supporting the realization of Saudi Arabia’s Vision 2030. As one of the 10 fastest growing countries in the e-commerce field, the growth rate in the first quarter of 2023 was 17%. Saudi Arabia’s e-commerce system supports entrepreneurs who are willing to transition from conventional trade to e-commerce by providing entities that offer electronic payment, digital marketing, and technology solutions services. These entities also provide services related to e-marketplace, logistics solutions, and development of e-shop platforms. The Saudi Ministry of Commerce’s e-commerce committee aims to strengthen the reliability of e-commerce, increase its contribution to the national economy, and stimulate and develop e-commerce activities in Saudi Arabia. Bright Prospects for Real-time Payments in Saudi Arabia
In 2022, the real-time payment transaction volume in Saudi Arabia reached 352 million, and it is expected to climb to 1.2 billion by 2027 – a compound annual growth rate (CAGR) of 26.1%. Source: ZAWYA BY REFINITIV.
As the largest real-time payment market in the Middle East, Saudi Arabia continues to lead the real-time payment revolution in the region. According to the “Real-Time Payments Gold Rush Report 2023” published by ACI Worldwide in collaboration with leading data analysis company GlobalData, the number of real-time payment transactions reached 352 million in 2022, and is expected to climb to 1.2 billion by 2027, with a CAGR of 26.1%. Santhosh Rao, Senior Vice President of ACI Worldwide MEASA, said: “Two-thirds of Saudi Arabia’s population are under the age of 25, and real-time payments will continue to thrive and pave the way for economic growth and financial prosperity throughout Saudi Arabia.” Given the government’s support for the modernization of national payment infrastructure, Saudi Arabia has accelerated its transition to non-cash payments in recent years. By 2027, most payments in Saudi Arabia are expected to be electronic payments, with 7.4% being real-time payments and 48.6% being other forms of electronic payments. The report also shows that Saudi Arabia has risen to ninth place in the global mobile wallet penetration rate, and 80% of Saudi consumers say they are avid users of mobile wallets. The success of real-time payments in Saudi Arabia is largely due to the country’s 2030 vision plan, which promotes the modernization of the country’s payment infrastructure and the adoption of digital payments to promote economic growth and financial inclusivity.
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