E-commerce sales using the Kingdom's Mada payment system have surged to $5 billion, reflecting a 37% annual growth. The rise is attributed to a growing preference for online transactions, supported by widespread smartphone penetration and enhanced digital infrastructure. The Saudi central bank has also played a pivotal role by integrating contactless payment systems and promoting a cashless economy, fostering convenience and security for consumers.
Saudi Arabia’s digital readiness and rising disposable incomes have further solidified its position as a leader in the region’s e-commerce landscape. The demographic under 40 years old, comprising 65% of the population, has become a significant consumer base, particularly in the fashion and apparel sectors. With a market valuation of nearly $4 billion, the fashion e-commerce sector is projected to almost double by 2028. This growth aligns with government initiatives like the Saudi Fashion Commission’s "100 Saudi Brands" campaign, spotlighting local talent and craftsmanship.
Investments exceeding $24 billion into digital infrastructure, including 5G deployment with 77% national coverage, have reinforced Saudi Arabia’s position as a global frontrunner in connectivity. Global players, such as Mastercard and TBS Holding, are capitalizing on this expansion, contributing advanced payment processing systems and artificial intelligence technologies.
Saudi Arabia’s Public Investment Fund has also backed major e-commerce players like Noon, creating competitive advantages against international giants such as Amazon. This ecosystem is further enriched by an affluent consumer base, with nearly 130,000 millionaires poised to increase to over 226,000 by 2030, demonstrating significant purchasing power and interest in luxury brands.