KSA e-commerce market set to grow but local players need more support

May 29, 2023 | By RetailME Bureau

UAE e-commerce market to touch $9.2-bn by 2026

Valued at SAR19.3 billion the Kingdom of Saudi Arabia’s e-commerce market accounts for 6%, or SAR19.3 billion, of the overall SAR347.2 billion retail market. This is expected to grow to reach 7.5% or SAR34.7 billion by 2026.

Cross-border e-commerce accounts for 59% of all e-commerce revenue (2021). Interestingly, while this is set to decrease (possibly to 49% by 2026) as local and hybrid players gain traction, it still dominates. Meanwhile, 74% of online shoppers in the Kingdom expect to increase their purchases from Saudi e-commerce platforms compared to purchases from China, GCC, Europe and the US.

However, a new report suggests that further support must be given to ensure a level playing field for all e-commerce players, thereby protecting consumer interests and promoting local investments.

Consumers have voted with their purses to date with the majority opting for cross-border platforms due to lower prices (72%), wider choice (47%), convenience (35%) and brand variety (31%). However, this is seen to be changing, as local e-commerce platforms continue to launch in the market and consumers becoming keener to buy locally.

To support local e-commerce businesses to thrive alongside cross-border accounts some initiatives are needed to create a level playing field for all e-commerce players. These could be a reduction in the minimum duty threshold and reviews of tax laws for foreign organisations and individuals. Thresholds on import quantities could be introduced and local quality standards could be mandated for cross-border players. As it stands current regulations in the market favour cross-border players, and until that changes cross-border sales will continue to hold a major share of the e-commerce market compared to local players.

Findings from a report by management consulting firm Kearney and Mukatafa, a KSA organisation unifying the public and private sectors in the development of industry policy and standards.

Previous Article Next Article



InFlavour to showcase diversity of KSA’s F&B sector

Global heavyweights from around the world are confirming their participation at InFlavour, 

Continue Reading

September 6, 2023 | By RetailME Bureau

Coffee Planet has unveiled a new brand identity to reinforce its position 

Continue Reading

August 7, 2023 | By Anurima Das
Food positive

The expansion of the organic food and grocery market in the UAE 

Continue Reading

July 26, 2023 | By Anurima Das
Union Coop reaffirms commitment to create an inclusive retail environment

Dubai-based consumer cooperative brand Union Coop has signed a memorandum of understanding 

Continue Reading

July 24, 2023 | By RetailME Bureau
GMG opens Monoprix in Nakheel Mall

UAE-based diversified business GMG’s Everyday Goods – Retail division has announced the 

Continue Reading

July 19, 2023 | By RetailME Bureau
What’s special about Dubai’s newly opened fruit & vegetable market?

Located in Al Aweer and spanning 66,000 square metres the recently opened 

Continue Reading

July 18, 2023 | By RetailME Bureau
Agthia Group launches $54-mn corporate venture capital fund

Abu Dhabi-based diversified F&B company Agthia Group has launched a $54 million 

Continue Reading

July 13, 2023 | By Rupkatha B
Carrefour UAE plans to recruit 2,500 Emiratis by 2026

Grocery retail major Carrefour, owned and operated by Majid Al Futtaim in 

Continue Reading

July 6, 2023 | By RetailME Bureau
GMG opens first monop store in Dubai

UAE-based diversified business GMG has opened the first monop convenience store at 

Continue Reading

June 20, 2023 | By RetailME Bureau
Carrefour strengthens Emiratisation commitment

Carrefour, which is owned and operated by Majid Al Futtaim Retail in 

Continue Reading

June 6, 2023 | By RetailME Bureau
Al Maya SMKTS diversifies product range

UAE-based supermarket chain Al Maya SMKTS, part of Al Maya Group, continues 

Continue Reading

June 6, 2023 | By RetailME Bureau

Download Images RetailME Magazine