E-Commerce Trends in Saudi Arabia for 2025

Saudi Arabia’s e-commerce is expanding at a higher rate than before. Did you know how online shopping in the Kingdom is evolving? With emerging technologies, government incentives, and shifting customer behavior, the e-commerce sector is changing rapidly. From electronic payments to AI-powered shopping experiences, companies modify themselves to suit technology-enabled consumers.

In this blog, we will discuss the most important e-commerce trends in Saudi Arabia 2025, real-world examples, and how companies can remain ahead in this competitive market.

1. Rapid Growth of Online Shopping

The e-commerce market in Saudi Arabia is growing at a record rate. The country’s total e-commerce sales will reach more than $13 billion by 2025, as reported. This high growth is propelled by:

Higher mobile and internet use
The rise of social commerce shopping
Government initiatives to promote digital companies

For instance, Jarir Bookstore, which was initially a physical business, expanded online successfully, selling books, electronics, and office supplies on its website and app. This move enabled the company to reach more customers across the country.

2. Rise of Mobile Commerce (M-Commerce)

Increasing numbers of individuals in Saudi Arabia are using their mobile phones to make purchases online. Research indicates that well over 70% of the Kingdom’s e-commerce transactions currently occur on a mobile phone. Companies are making investments in:

Mobile-friendly websites
Shopping apps
Quicker checkout procedures

A good example is Namshi, an online fashion e-commerce website that optimized its mobile app for seamless shopping, resulting in increased sales and customer satisfaction.

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3. Digital Payment Boom

Cash on delivery used to be the most popular payment option in Saudi Arabia. But now, digital payments are on the rise. In 2025, 70% of all transactions are projected to be digital. The launch of Apple Pay, STC Pay, and Mada Pay has streamlined online payments and made them more secure.

For example, Noon.com, the region’s largest e-commerce retailer, urges online payments with special deals for those who pay online rather than in cash.

4. AI and Personalization in Online Shopping

Artificial Intelligence (AI) is transforming online shopping behavior. AI enables companies to make personalized product suggestions, offer chatbot services, and generate predictive customer preferences.

A clear example is Amazon Saudi Arabia, which employs AI to offer product suggestions based on browsing history to make shopping simpler and personalized for customers.

5. Social Media Shopping (Social Commerce)

Most Saudi consumers today purchase directly from social media sites such as Instagram, Snapchat, and TikTok. Products are promoted through influencers and sponsored ads by brands, allowing customers to purchase items without exiting the app.

For example, Shein and Fordeal, the two big fashion stores, employ Instagram advertisements and influencer collaborations to record gigantic sales in the Saudi market.

6. Faster Delivery and Smart Logistics

Consumers expect next-day or same-day delivery now. Saudi e-commerce businesses are teaming up with next-generation logistics providers to accelerate deliveries. The advent of AI-driven warehouses and intelligent delivery routes is enabling this.

For instance, SPL (Saudi Post & Logistics) has made investments in intelligent warehouses to facilitate quick and effective delivery throughout the Kingdom.

7. Growth of Buy Now, Pay Later (BNPL) Services

BNPL products such as Tabby and Tamara enable customers to buy goods and pay in installments without interest. This is gaining traction, particularly among young Saudi consumers who prefer flexible payment terms.

For instance, large stores such as IKEA Saudi Arabia have introduced BNPL services, promoting sales and gaining more customers.

8. Sustainability and Eco-Friendly Shopping

Increasing numbers of Saudi consumers are more conscious of the environmental effects of shopping. Therefore, companies are embracing sustainable approaches like:

Employing environment-friendly packaging
Selling sustainable products
Promoting recycling and re-use

For instance, The Body Shop Saudi Arabia sells green skincare products and offers the ability for customers to recycle empty packaging.

9. Government Support and Vision 2030

The Saudi government is promoting the e-commerce sector actively as part of Vision 2030. Some initiatives are:

Promoting digital entrepreneurship
Streamlining business regulations
Enhancing logistics and payment systems

For instance, Monsha’at, which is the Saudi SME Authority, offers funding and mentorship schemes to support small enterprises to prosper in e-commerce.

10. Expanding Online Grocery and Food Delivery

The need for online food and grocery delivery has surged in Saudi Arabia. Food and grocery delivery apps such as HungerStation, Jahez, and Nana provide quick delivery of food and groceries, and shopping has never been easier.

During Ramadan, as an example, grocery delivery volumes are up by 40%, illustrating how the way people shop online varies based on cultural and religious occasions.

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Conclusion: The Future of E-Commerce in Saudi Arabia

Saudi e-commerce is expanding very fast, and companies have to keep up with new trends to remain competitive. With the growth of mobile commerce, artificial intelligence, digital payments, and social shopping, the future of Kingdom online retail is bright. Firms that invest in technology, logistics, and value-based customer experiences will dominate the market in 2025 and beyond.