E-commerce has drastically transformed the dynamics of consumer behavior in business models in retail, alongside other sectors globally. This megatrend, however, still offers huge potential for industry players in the Middle East and North Africa (MENA) region. In the Gulf Cooperation Council (GCC), several driving agents contribute to the region’s attractiveness as a destination for e-commerce investment such as high per capita income, developed logistics networks, and high internet penetration levels. A large social media penetration has also driven the rise of e-commerce in the region. In Saudi Arabia, the vast majority of the population was
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The e-commerce market in Saudi Arabia
Saudi Arabia has the largest population in the GCC, with a tech-savvy and growing young population, which makes it a key market player in MENA. In 2020, around
90 percent of the population had internet access. These factors eased e-commerce adoption among the population, with around 80 percent of
active internet users in Saudi Arabia engaging in online shopping, which is the same share as in China. Thus, the e-commerce market is one of the largest across the MENA region and is expected to continue growing.
Consumer behavior
The e-commerce sales in the kingdom are expected to continue growing. It is no surprise that even after the pandemic, the shift in consumer behavior is still witnessed among Saudis, and some trends are here to stay. More consumers are shifting towards
online shopping when it comes to groceries. The current climate presents an opportunity for brands to grow new customer relationships and add value to existing ones.
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