Saudi consumers prefer local e-commerce platforms

07/06/23

Saudi Arabia’s retail sector is eyeing significant growth on the back of its e-commerce market.

In a recent report, leading global management consulting firm Kearney and Saudi consulting company Mukatafa noted that 74% of online shoppers in the Kingdom are expected to migrate from global to local platforms.

Saudi Arabia’s e-commerce market is valued at SAR 19.3 billion (USD 5.14 billion). It is forecasted to increase to SAR 34.7 billion (USD 9.25 billion) to reach 7.5% of the overall retail market by 2026.

An expanding e-commerce ecosystem will accelerate innovation, job creation, investment and private-sector growth in line with the Kingdom’s Vision 2030 objectives.

Further supporting e-commerce is the news that the Saudi Central Bank (SAMA) has granted permits to Spotii and Madfu to provide consumer finance through the buy now, pay later (BNPL) platform. These companies provide flexible transaction settlement options. SAMA has been working toward increasing the adoption of the financial technology (fintech) sector to boost the effectiveness, security and flexibility of financial transactions.

The approval is expected to attract a new segment of investors and value added firms that can assist in maintaining more efficient operations. In addition, this initiative will further contribute to The Kingdom achieving its objectives of the Financial Sector Development Programme by elevating Saudi Arabia to become one of the leading worldwide countries in fintech.

Business Start Up Saudi Arabia offers a network of experts and specialists within the lifecycle of a business. We can offer expertise in Market Research and Assessment Saudi Arabia, Saudi Arabia Business Case, Saudi Arabia Business Model Development, Feasibility Study and Business Plan Saudi Arabia, Organizational and Operational Structuring Saudi Arabia, Saudi Arabia Sponsorship and Partnership, Company Formation Saudi Arabia among others.

Please click on the link to learn more about opportunities and possibilities in Saudi Arabia as well asthe initiatives of Business Start Up Saudi Arabia.

Other News

BSUS News 17 - Thumb

Saudi Arabia releases FDI statistics under new methodology

Saudi Arabia`s Ministry of Investment recently released updated statistics detailing foreign direct investment (FDI) into the Kingdom. The new methodology is preferred by the International Monetary Fund...

Read more
BSUS News 16 - Thumb

Saudi`s PIF announces voluntary compliance to aid transparency

Saudi Arabia`s Public Investment Fund (PIF) recently announced it would comply with the Global Investment Performance Standards (GIPS) from the Chartered Financial Analyst (CFA) Institute.

The sovereign...

Read more
BSUS News 15 - Thumb

Saudi Arabia to grant premium residency for regional HQ executives

Saudi Arabia’s Ministry of Investment is offering a premium residency to executives based at regional headquarters. The initiative is part of its ongoing efforts to enhance its business environment and...

Read more
BSUS News 14 - Thumb

Saudi fund to invest SAR 112million in Middle East startups

State owned Saudi Venture Capital (SVC) is investing SAR 112 million (USD 30 million) in a fund that will finance startups and growth-stage companies from Saudi Arabia and the Middle East.

Impact46,...

Read more
BSUS News 13 - Thumb

Saudi and UK Ministers discuss trade and cultural co-operation

Saudi ministers recently discussed enhancing co-operation in trade and cultural sectors with their United Kingdom (UK) counterparts on the sidelines of the GCC Ministers of Trade and Industry meeting in...

Read more
BSUSA - Announcement - Thumb

BSUS Congratulates KSA on Saudi National Day 2023

Business StartUp Saudi Arabia would like to congratulate the Kingdom of Saudi Arabia and its people on the occasion of Saudi National Day 2023!

On this day in 1932, the Sultanate of Najd and the Kingdom...

Read more
BSUSA News 11 - Thumb

Saudi tourism revenues reach SAR 37 billion amid travel boom

Saudi Arabia recorded tourist revenue of SAR 37 billion (almost USD 10 billion) as the sector witnessed a massive surplus due to an unprecedented travel boom in the Kingdom.

According to figures released...

Read more
BSUS News 10 - Thumb

Saudi Arabia’s largest solar project receives SAR 8.3 billion

Saudi Arabia`s National Development Fund (NDF) recently announced its participation in financing the largest renewable energy project in the country.

The Shuaiba project is a partnership between Saudi...

Read more

Page Break