RIYADH: Saudi Arabia’s e-commerce market value increased by 60 percent between 2019 and 2020, and is now forecast to exceed SR50 billion ($13 billion) by 2025, according to a new analysis.
Boston Consulting Group’s report, prepared jointly with Meta, explains e-commerce’s large growth relative to the traditional retail sector.
E-commerce sales in Saudi Arabia have been driven by apparel, electronics, and appliances.
Despite the fast growth of the sector in Saudi Arabia, it is still in an emerging phase, the report argued.
In 2020, online sales in the Kingdom accounted for 8 percent of the total retail sales compared to 18 percent worldwide.
“The e-commerce market in Saudi Arabia is smaller in comparison to some of the bigger e-commerce markets, such as China, US, and the UK,” said Pablo Martinez, managing director at BCG.
“However, its tremendous potential is already apparent despite its infancy, and the advancement of a robust e-commerce ecosystem in the years ahead will present a multitude of economic and social benefits,” he added.
The rapid growth of the e-commerce market in Saudi comes as the Kingdom makes sustained progress to its Vision 2030.