Saudi Arabia’s e-commerce market has largely depended on international marketplaces to fulfil the needs of its consumers. But as the Kingdom pushes ahead with its economic diversification plans, homegrown players will likely come to the fore in this booming market.
The Saudi Arabian government is keen to support e-commerce in the Kingdom with it implementing legislation and regulations to facilitate the growth of online businesses. This is creating a favourable environment for e-commerce companies to thrive.
The growth of e-commerce in Saudi Arabia has had a big impact on traditional brick-and-mortar retailers. While traditional retailers are expanding and adding retail space, the pace of e-commerce growth suggests that Saudi Arabia may not need to develop as much retail selling space per capita as in other countries.
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Retail E-Commerce
Online sales of new and used goods to the public from a business for personal or household consumption. This figure includes those purchases made via online marketplaces, assuming it is a business-to-consumer purchase. This figure includes the purchase of mobile apps, games, in-app purchases and downloaded versions of recorded music, film, video games, books, journals and magazines. Note: The streaming versions of these media types, which are not tracked in Retailing, are captured in Streaming Services E-Commerce. Goods purchased via quick-delivery services, such as Amazon Prime, are captured here, whereas the subscription fee for such a service is captured in Other E-Commerce. Retail purchases made via hyperlocal or third-party delivery platforms are also included here, while the delivery fees associated with such services are included in Other E-Commerce. This category excludes the following industries and channels: • Specialist retailers of motor vehicles; motorcycles, vehicle parts and fuel • The rental, hire and leasing of products • Wholesalers, cash and carry outlets • Consumer-to-consumer transactions • Informal retail which is not declared to tax authorities
See All of Our DefinitionsThis report originates from Passport, our Retail E-Commerce research and analysis database.
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