Saudi E-commerce Startups Secures $426.7Mn in 2023 Funding
E-commerce platform users in the kingdom are expected to reach 34.5 million by 2025.
Saudi Arabia's e-commerce sector is experiencing significant growth, with startups attracting SAR1.6 billion ($426.7 million) in venture capital funding in 2023, according to the Small and Medium Enterprises General Authority (Monsha’at).
E-commerce platform users in the kingdom are expected to reach 34.5 million by 2025, reflecting a 42% increase from 2019 to 2024. This growth highlights the sector's pivotal role in Saudi Arabia’s economic diversification efforts, particularly under the Vision 2030 framework.
The establishment of the E-Commerce Council in 2018 has been a key driver in the sector’s expansion, focusing on advancements in financial technology, payment solutions, and logistics. As a result, Saudi Arabia has emerged as one of the most dynamic e-commerce markets in the Middle East and North Africa.
In our latest thematic report, we take a deep dive into how #ecommerce is helping #SMEs transform their business. With insights and success stories from across the ecosystem, #Monsha’at’s latest report has everything for #entrepreneurs keen to grow their online presence.
— منشآت | Monshaat (@MonshaatSA) August 27, 2024
In 2020, e-commerce contributed 4% to the kingdom's GDP, with 8% of goods and 25% of services purchased online. E-commerce revenues are projected to reach SAR211 billion ($56.23 billion) by the end of this year, though the sector currently represents just 18% of total retail sales.
By 2025, the e-commerce sector’s contribution to GDP is expected to rise to 12%, driven by a targeted 15% compound annual growth rate from 2020 to 2025. Looking ahead, 80% of transactions in Saudi Arabia are anticipated to be conducted electronically by 2030, aligning with the broader goals of Vision 2030.