RIYADH: Saudi Arabia’s e-commerce sales using Mada cards reached SR17.44 billion ($4.65 billion) in November 2024, a year-on-year growth of 29.4 percent, according to recent data from the Saudi Central Bank.
This figure includes payments for online shopping, in-app purchases, and e-wallet transactions, but excludes payments made through credit cards such as Visa and MasterCard.
The rise in e-commerce activity aligns with Saudi Arabia’s goal to make digital commerce 80 percent of the retail sector by 2030, with 70 percent of transactions conducted online by the same year.
Mada, the Kingdom’s national payment card system, supports both debit and prepaid services within its network. The cards utilize near-field communication technology for contactless payments, enabling secure transactions at both physical retailers and online. Mada cards play a crucial role in Saudi Arabia’s transition to a cashless economy.
In addition to the surge in sales, the number of e-commerce transactions also saw a significant increase, rising by 26.49 percent year on year to nearly 99 million transactions in November alone.
The spike in e-commerce activity in Saudi Arabia can be attributed to a combination of demographic and economic factors. With 60 percent of the population under the age of 30, the Kingdom is witnessing a growing trend toward digital consumption, largely driven by a tech-savvy youth demographic eager to embrace online shopping.
Furthermore, the expanding middle class and the rising influx of expatriates are contributing to greater financial capacity, while the growth of dual-income households further bolsters spending power.
This evolving economic landscape, paired with shifting consumer expectations for personalized and seamless digital experiences, is driving businesses to innovate and enhance their online offerings.
Ongoing infrastructure development—including the construction of new cities and modern shopping centers—adds to the momentum. As these trends continue, Saudi Arabia’s e-commerce sector is poised for substantial growth, reshaping the Kingdom’s retail environment in the coming years.
According to the latest data from the Ministry of Commerce, the Kingdom’s e-commerce sector saw a total of 40,953 businesses registered by the fourth quarter of 2024, reflecting a 10 percent year-on-year increase. Riyadh led in business registrations with 16,834, followed by Makkah and the Eastern Province. This uptick is a testament to Saudi Arabia’s push toward a digitally-driven, diversified economy, with e-commerce playing a central role in the transformation.
In parallel, the fintech sector also experienced notable growth, with the Ministry of Commerce reporting a 12 percent increase from the previous year. A total of 3,152 new fintech business registrations were recorded in the fourth quarter of 2024, highlighting the sector’s expanding role in supporting secure and seamless online transactions.
The growth of e-commerce and fintech is part of a broader trend of innovation across various sectors in Saudi Arabia. Recent reports highlight significant advances in cloud computing services, solar panel manufacturing, and real estate development—all in alignment with the goals of Vision 2030, which seeks to diversify the economy and promote sustainability.
With its rapidly expanding digital economy, Saudi Arabia is well-positioned to lead in the future of global e-commerce, as the country continues to embrace technological innovation and sustainability.
