The e-commerce market in Saudi Arabia is experiencing explosive growth, reaching a market size of USD 22.29 billion in 2024, with projections indicating it will double to USD 49.49 billion by 2030, making it the most critical hub for e-commerce expansion in the Middle East. Backed by a young consumer base and an expanding digital payment ecosystem, cross-border e-commerce accounts for a significant share of 35% in the Saudi market, presenting substantial overseas expansion opportunities.
This rapid expansion is driven by systematic upgrades in government policies and infrastructure. These include strict regulations under the E-Commerce Law, the advancement of cashless payment systems, and investments exceeding USD 130 billion in building a logistics hub network spanning three continents, providing solid support for e-commerce operations. Leading enterprises such as Amazon and SHEIN have significantly enhanced delivery efficiency through smart warehousing and high-temperature-adaptive automation technologies, meeting the market’s high standards for speed and service quality.
Saudi Arabia's digital payment system has transitioned from traditional cash-on-delivery to mainstream digital payments, with transaction volumes via local payment methods like Mada cards increasing by over 56% year-on-year. Additionally, the rise of BNPL (Buy Now, Pay Later) models and improved cross-border payment systems have further lowered consumer payment barriers, accelerating the process of consumption upgrading.
The core consumer segment in Saudi Arabia’s e-commerce market consists primarily of individuals under the age of 30, with female consumers accounting for 59%. Consumer demand is gradually shifting from price-performance considerations toward value and experience orientation, driving rapid growth in categories such as health, beauty, and fashion. The festival economy has performed particularly well, with platform transaction volumes surging during Ramadan 2025, highlighting the significant influence of cultural and religious factors on consumer behavior.
High logistics costs and regulatory compliance remain key challenges in market development. Last-mile delivery costs are approximately 1.5 times higher than those in Europe and North America, while customs clearance and product certification processes are complex, imposing higher operational standards on overseas enterprises. Saudi Arabia’s 15% VAT rate and stringent compliance framework increase operating costs, necessitating that businesses adopt localized compliance strategies, tax planning, and intelligent logistics solutions to reduce costs and improve efficiency.
In the cross-border e-commerce sector, Chinese supply chains demonstrate strong competitiveness. Fast-fashion brands such as SHEIN and AliExpress have achieved high growth and expanded market share through localized operations and strategic deployment of smart warehousing. Brand strategies emphasize cultural integration and functional innovation; for example, SHEIN’s “Desert Rose” collection successfully blends traditional clothing elements with modern design, enhancing user engagement and repeat purchase rates.
On the marketing front, content creation integrated with social short-video platforms like TikTok—leveraging local KOLs and AI technology—enables precise product seeding and user acquisition at scale, forming a triad marketing loop of “short video + private domain + search,” significantly improving traffic conversion efficiency. The Viking Overseas Platform (LnRu) offers end-to-end support from payment integration to tax compliance, lowering operational barriers and optimizing compliance costs for international businesses.
In summary, in 2025, Saudi Arabia’s e-commerce market is transitioning from rapid scale expansion to a phase of high-quality development. The convergence of policy incentives, infrastructure upgrades, and consumption upgrading creates new opportunities for cross-border e-commerce and brand globalization. A deep understanding of local culture, effective alignment with regulatory requirements, development of intelligent supply chains, and innovative digital marketing are key to achieving long-term success in this highly promising market.
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