Saudi Arabia eCommerce

Insights into the growth of Saudi Arabian eCommerce with payment methods, target audiences, marketing, social media, economy and logistics all profiled

Economy

Saudi Arabia is home to 32.28 million people with a total GDP of 646.44 billion USD and GDP per capita of 22,411 USD, which is expected to reach 23,421 USD by 2022.

Digital User Insights

There are currently 12.94 million eCommerce users in Saudi Arabia, with an additional 6.34 million users expected to be shopping online by 2022. Four years from now, these 19.28 million eCommerce users will spend an average of 487.70 USD online.

Internet usage

On average, Saudi Arabian desktop users spend 3 hrs 25 minutes per day on the internet, whereas mobile users spend 3 hrs 51 minutes. 

Product Categories

Total Saudi eCommerce revenue across all product categories is 6.13 billion USD, and is expected to grow to 9.41 billion USD by 2021. Fashion is currently the leading product category in Saudi Arabia, accounting for 1.91 billion USD market share, followed by Electronics & Media, which generates 1.85 billion USD in sales.

By 2021, Fashion will still be the most purchased online category, with an estimated value of 3.08 billion USD, and second favorite, Electronics & Media, will have an expected worth of 2.66 billion USD.

Logistics

In 2016, Saudi Arabia was ranked 52nd in the World Bank Logistics ranking.

Preferred Online Payments

64% of Saudi shoppers like to pay cash on delivery when shopping online.

Where does Saudi Arabia buy from?

China supplies Saudi Arabia with 23.4 billion USD in imports – ranging from gold to cars. Saudi Arabia's other key import partners are the United States ($18.8 billion), Germany ($11 billion), South Korea ($9.7 billion) and the United Arab Emirates ($8.5 billion).

Internet and Device Usage

Internet penetration in Saudi Arabia is currently 71.3%, and should reach 73.4% by 2022. Smartphone penetration is a little less (65.2%), but is projected to grow to 66.6% in the next four years.

63% of online shoppers in the Middle East buy via desktop, a stark contrast to the amount of smartphone (6%) and tablet (7%) shoppers.

Marketing

In 2017, 265 million USD of Saudi Arabia's ad spend was spent on outdoor advertising.

Social Media

59% of Saudis are active social network users, thanks to YouTube, Facebook, Instagram and Twitter, which are the leading social networks.

For more market insights, check out the eShopWorld series of blogs covering a range of emerging eCommerce markets. 

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