E-commerce sales in Saudi Arabia via “Mada” cards during the first quarter of 2025 reached their highest levels ever, totaling more than SAR69.3 billion (around $18.5 billion), achieving an annual growth of 56 percent, and an increase of approximately SAR24.9 billion compared to the same period in 2024, during which sales reached SAR44.4 billion, according to the statistical bulletin issued by the Saudi Central Bank for May. The report, carried by the Saudi Press Agency (SPA), indicated that the number of transactions executed via Mada cards exceeded 370 million during the first quarter, while sales achieved a quarterly growth of 26 percent, an increase of approximately SAR14.1 billion, compared to SAR55.2 billion in the fourth quarter of 2024.
Measuring monthly performance, e-commerce sales via Mada reached approximately SAR27.4 billion in May, registering an 18 percent growth from the previous month, when sales reached SAR23.3 billion, with transactions exceeding 147 million. The data showed a cumulative growth of 31.3 percent during the period from January to May 2025, an increase of approximately SAR6.5 billion, compared to sales of SAR20.9 billion in January.
The Saudi e-commerce market is witnessing rapid expansion, with total market size projected to reach between $16.5 billion and $27.96 billion in 2025, depending on the source. This growth is supported by a compound annual growth rate (CAGR) of approximately 12 percent through 2030. E-commerce now accounts for about 18 percent of total retail sales in the Kingdom, indicating significant room for further growth as digital adoption continues.
Key drivers of growth
Digital transformation and Vision 2030: The Saudi government’s Vision 2030 initiative has been pivotal, focusing on digital infrastructure, cashless transactions, and fintech solutions. These efforts have created a robust environment for online retail and increased consumer trust in digital payments. Mobile and internet penetration: With internet penetration at 98.6 percent and smartphone usage at 97 percent, Saudi consumers are increasingly shopping online, with over 91 percent of consumers now making purchases via digital platforms. Mobile payments: The mobile payments market in Saudi Arabia is expected to reach $25.94 billion in 2025, with remote payments (including e-commerce) growing at a CAGR of 15.4 percent. Contactless and mobile wallet adoption is widespread, with 94 percent of cardholders using tap-to-pay features in 2024.
Read more: E-commerce in Saudi Arabia sees 17.47 percent surge with 40,697 new records in Q2 2024
Consumer behavior and payment trends
Shift to digital payments: The adoption of digital payment methods such as Mada, Apple Pay, and stc pay has simplified transactions and increased consumer confidence. Mada, as the national payment network, is central to this shift, enabling secure, instant payments both online and in-store. Mobile commerce: Over 70 percent of e-commerce transactions in Saudi Arabia are now conducted via mobile devices, reflecting the population’s comfort with technology and preference for convenience. Women’s participation: Women are increasingly active in the digital economy, making up nearly 75 percent of online purchases in 2023, supported by government initiatives to empower female entrepreneurs and digital workers.
Sector highlights and leading categories
Food and grocery delivery: This segment is witnessing particularly rapid growth, with leading platforms like Hungerstation and Jahez reporting significant increases in order volumes and gross merchandise value. Retail and social commerce: Traditional retailers such as Jarir Bookstore have successfully expanded online, while social commerce and influencer-driven sales are becoming more prominent.
Business and regulatory environment
Increase in e-commerce businesses: The number of registered e-commerce businesses in Saudi Arabia reached 40,953 by the end of 2024, marking a 10 percent year-on-year increase. Logistics and infrastructure: Investments in logistics, last-mile delivery, and digital payment infrastructure are further supporting the sector’s growth and efficiency.
