Saudi Arabia leads regional adoption of online shopping post-pandemic

Around 24 percent of surveyed consumers have used a “buy now, pay later” option this year – higher than the 23 percent across the UK and Europe. (File/Shutterstock)saudi
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Updated 20 September 2021
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Saudi Arabia leads regional adoption of online shopping post-pandemic

  • 83 percent of 13,000 surveyed consumers said they will “maintain or even increase their current level of e-commerce spending into the next year”
  • The unprecedented growth in both e-commerce and digital payments are also reflective of a developing regulatory regime

DUBAI: When countries implemented lockdowns to control the COVID-19 pandemic, consumers all over the world took to the internet to satisfy their shopping needs – accelerating the growth of e-commerce.

The region was no exception, and the trend is likely to continue post-pandemic.

Based on a new report by global payments company Checkout.com, 83 percent of 13,000 surveyed consumers said they will “maintain or even increase their current level of e-commerce spending into the next year.”

The shift in consumer behavior was remarkable in Saudi Arabia, the report noted, with 53 percent of Saudi respondents saying they shop online at least once a month – above the regional average of 45 percent.

It’s even highlighted during peak shopping seasons, such as in Ramadan, where 76 percent of consumers in Saudi Arabia and the UAE say they were likely to buy products and services online more frequently during the holy month.

The report estimated that 209 million more customers in the Middle East and North Africa, as well as Pakistan, — a region known as MENAP — have begun shopping online since the pandemic broke out in March 2020.

The growth in e-commerce owes to a “greater sophistication” in the region’s digital payments ecosystem.

“A flourishing digital payments and e-commerce ecosystem is leading consumers to feel more empowered, with star-ups thriving in the fintech arena, and commercial markets opening up,” said Mo Ali Yusuf, regional manager for MENAP at Checkout.com.

The report said 60 percent of consumers in the region now prefer to use a digital payment method when purchasing online – up by 20 percent since the company’s 2020 report.

Not only is cash being used less, but consumers are also using newer ways of paying, including digital wallets and “buy now, pay later” apps.

Outperforming Europe

Yusuf said MENAP has begun “to outperform European markets in the adoption of emerging payment methods.”

Around 24 percent of surveyed consumers have used a “buy now, pay later” option this year – higher than the 23 percent across the UK and Europe.

“This presents a phenomenal opportunity for global and domestic merchants to expand their businesses across MENA,” he added.

An official at the World Bank earlier highlighted the role of digital payments in economic growth, entrepreneurship, job creation, public service delivery and financial inclusion in the region.

The use of financial technology (fintech) applications in the region has been promising – with 76 percent reporting to use some form of it in the past year, only 4 percent short of the consumers in the Asia Pacific region.

This presents an opportunity to address financial inclusion in the region, the Checkout.com regional manager said, particularly empowering the unbanked and underbanked population.

Government backing and a modernized regulatory regime

The unprecedented growth in both e-commerce and digital payments are also reflective of a developing regulatory regime, with many countries including Saudi Arabia showing keenness in adapting to trends in banking and finance.

Core policies in several Gulf countries are built around promoting a “digital economy,” even accelerated by the impact of COVID-19.

“As countries recover from this crisis, robust inclusive digital financial systems will be vital to creating a foundation for critical gains for sectors,” a statement from the Arab Monetary Fund said.


From moros to mass tourism — historical bonds fuel Saudi-Spanish tourism takeoff, says ex-Balearic leader

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From moros to mass tourism — historical bonds fuel Saudi-Spanish tourism takeoff, says ex-Balearic leader

  • Jose Ramon Bauza says Saudi-Spanish tourism ties may be in their infancy but are poised for a fruitful relationship
  • ‘Kingdom has everything to become global leader on vacational and family destinations,’ former Spanish senator tells Arab News

MADRID: Saudi-Spanish tourism ties may still be in their infancy, but for Jose Ramon Bauza Diaz, they already have the makings of a “family affair.”

“We are at the very beginning of what should be a fruitful and successful relationship,” the former Spanish politician turned tourism consultant told Arab News on the sidelines of FITUR, the flagship global tourism fair.

“Everything has yet to be done. I think we are not starting from scratch, but we are at a starting point, and we have both the opportunity to do a lot of things together.”

Spain welcomed a record 93 million visitors in 2024, overtaking the US as the world’s second most visited country by international arrivals. The Kingdom represents a small proportion, with around 182,000 Saudis visiting in 2023.

Even so, Bauza believes the two countries are “warming up” fast, helped by deep historical links dating back to the presence of ‘moros’ — ancient Arabs whose legacy is etched into the Iberian Peninsula’s culture and architecture.

“We believe in the same principles. We believe in family, we believe in trust. We believe in doing things (together). We love being together; we are not people who want to be isolated,” he said. “This is a specific and privileged starting point.”

Tourism is a central pillar of Saudi Arabia’s Vision 2030, with the Kingdom only fully opening up to global visitors about a decade ago. In 2025 it welcomed more than 122 million domestic and international visitors, a 5 percent year-on-year rise that keeps it on track to reach 150 million by the end of the decade.

Religious tourism has been a key driver alongside a strong push into the luxury segment, but Bauza warned that overreliance on a narrow niche could limit the sector’s full potential.

“Saudi (Arabia) is currently very focused on the luxury (segment); that’s perfect — it is (already) one of the best in the world (in that market). But I think the Kingdom can (also) be the best in the world in vacation tourism, family tourism, and the upper middle to high-end (segment),” he said.

Drawing on Spain and Europe’s experience as industry leaders, he argued that no country can afford to compromise on quality.

“Everyone that (sets) quality (apart) is penalized,” he stressed. “Saudi has everything to be a top luxury destination. But as well that, to be the top vacational and family destinations (offering) high quality standards.”

Despite sluggish global growth, the tourism market is set to expand in the coming years, driven by rising consumer demand and easier access to international travel. The sector already accounts for just under 10 percent of global gross domestic product, supports more than 330 million jobs, and is growing about 1.5 times faster than the world economy. A recent report by the World Economic Forum and Kearney projects that annual tourist trips will reach 30 billion by 2034.

For Bauza — who during his tenure as a Member of the European Parliament served as chair of the Tourism Task Force and a member of the delegation for relations with the Arabian Peninsula — these numbers underline both the scale of opportunity and the difficulty of expanding responsibly, especially when it comes to sustainability.

“I always prefer to talk about quality than quantity,” he said. “When I was president of the Balearic Islands, I was not running for how many million tourists we had, but (rather) on how many quality tourism opportunities we could offer.” He added that with the right strategy, quality and quantity could grow together without “over-touristifying” a destination.

Spain has wrestled with over-tourism in recent years, triggering local protests over the sheer volume of visitors. The Balearic Islands, Barcelona, Andalusia and other hotspots have seen mounting anger over the impact on daily life, from water shortages to urban changes that increasingly cater to tourists rather than residents.

“What’s important is to have properly scaled infrastructure to provide the best services,” Bauza said, arguing that destinations needed clear plans taking residents’ needs into account as well as the efficiency and resilience of buildings and infrastructure.

“If we know we will grow in an area in the next 10 or 15 years, we need to provide the infrastructures and the structures (in advance),” he said, adding cities must be designed for both those who live there and the visitors who arrive from around the world, with “a common way of thinking that tourism is part of the way of living.”

Riyadh has made sustainability a core principle of its development blueprint. Flagship projects such as the Red Sea Project, Neom and Amaala are framed around 100 percent renewable energy, biodiversity conservation and bans on single-use plastics in a bid to create “nature-first” destinations.

Bauza said Saudi Arabia — which skipped this year’s FITUR despite a strong regional presence — has a chance to learn from mature tourism markets where rapid growth has brought economic gains but also environmental and social strain when not managed holistically.

“We have the knowledge of the tourism sector,” he said. “As a former president of the Balearic Islands, I’m proud that the big global brands are not only Spanish, they are from Mallorca and Ibiza. We can put this (experience) on the table — not to (tell) anyone what to do, not at all. (But) just to say to them: ‘Look at what we’ve done, see if it works for you. Copy it (if it fits). Let’s do it together because we have decades of experience’.”

In 2021, the tourism ministers of Saudi Arabia and Spain signed a joint statement to “redesign tourism,” agreeing to cooperate on three pillars — sustainability, digital transformation (including smart destinations and data sharing) and human-capital training.

These commitments were renewed in May 2025, when Madrid and Riyadh sealed four new private-sector deals to deepen investment and economic cooperation, with tourism highlighted as a strategic priority.

Spain now sees Saudi Arabia as a key Middle Eastern growth market. The 182,000 Saudis who visited in 2023 made the Kingdom Spain’s top Gulf Cooperation Council source market within a broader Gulf visitor base of 434,000 that year. That momentum has spurred a rise in investment flows.

Leading Spanish hospitality groups such as Melia Hotels International and Barcelo Hotel Group — both out in force at FITUR — are expanding their footprint in the Kingdom. At TOURISE 2025, Melia, Spain’s largest hotel operator, signed a Memorandum of Understanding with Saudi Arabia’s Tourism Development Fund to develop around 1,000 hotel rooms, while Saudia has launched direct Jeddah-Barcelona flights to complement services to Madrid and better integrate Saudi hubs with Spanish gateways.

Bauza welcomed the progress but said more must be done to unlock the full potential and build out services beyond core hospitality.

“Tourism is much more than hotel, much more than a restaurant, much more than a boutique, much more than an airport, much more than a museum. Tourism is an experience,” he said. “The goal is for Saudi people and Spaniards to work together. And the message is: It’s about to come (soon).”

“We need to trust each other, and we’re well prepared to take this step forward hand in hand, identifying the best options for quality tourism, not just quantity. Saudi Arabia is absolutely ready — globally, I see no country more committed.”

He added: “The key word is trust. We need to trust one each other, and we’re very well prepared to do this step forward together hand by hand, identify(ing) the best options for quality, not quantity tourism. And Saudi Arabia is absolutely prepared. Globally speaking, I cannot see any country who is much more committed.”

Bauza called for the Kingdom to secure a strong presence at FITUR to tell its own story: “If you’re not here, you’re not visible. You need a specific strategy for (showing) the many spectacular things you’re doing in tourism. I know because I’ve been there, but people who are not there, they don't know. (And) nobody’s telling them.”