The rise of ‘phygital’ — Saudi e-commerce industry sees Ramadan rush

This ‘phygital’ approach — combining the best of physical and digital shopping — will define the future of Ramadan commerce in the Kingdom. (SPA)
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Updated 15 March 2025
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The rise of ‘phygital’ — Saudi e-commerce industry sees Ramadan rush

  • Convergence of cultural roots with digital convenience is reshaping consumer expectations across the Kingdom

RIYADH: Embracing the essence of tradition while adapting to the evolving demands of a digital era, Ramadan in Saudi Arabia reflects a fusion of heritage and modernity.

The convergence of cultural roots with digital convenience is reshaping consumer expectations across the Kingdom, which has a population of 38 million, of whom 70 percent are under the age of 35.

Brands are now tasked with infusing core values such as personalization, community engagement, and generosity into the shopping journey to resonate with this tech-savvy and culturally rich demographic.

E-commerce rush in Saudi Arabia during holy month of Ramadan

According to Janahan Tharmaratnam, partner at Arthur D. Little Middle East, the Kingdom’s digital commerce market — valued at $14 billion in 2023 — is projected to reach $20 billion in 2025, a compound annual growth rate of 20 percent.

“The Ramadan period alone accounts for 35-40 percent higher transaction volumes, driven by a surge in demand for groceries, electronics, fashion, and gifting,” Tharmaratnam said. “The post-pandemic shift to online shopping has solidified consumer reliance on e-commerce, with 77 percent of Saudis now preferring digital-first shopping experiences.”

He went on to say that growth is not just focused on demand — it is also about fulfillment. 

The Ramadan period alone accounts for 35-40 percent higher transaction volumes, driven by a surge in demand for groceries, electronics, fashion, and gifting.

Janahan Tharmaratnam, Partner at Arthur D. Little Middle East

“Logistics networks must scale by 40 percent to meet the Ramadan surge, with nighttime deliveries increasing by 50 percent compared to other months,” he explained, adding that successful businesses do not just ramp up promotions; they optimize artificial intelligence-driven demand forecasting, reduce delivery times by 30 to 40 percent, and integrate micro-fulfillment centers across urban hubs to ensure inventory is closer to consumers.

This shift from centralized warehouses to hyper-local distribution is key to sustaining Ramadan’s retail boom, according to Tharmaratnam.

“A prime example is Jahez, Saudi Arabia’s homegrown quick-commerce platform, which experienced a 70-percent surge in Ramadan orders last year. Instead of simply adding more riders, Jahez used AI-driven logistics to optimize routes, reducing delivery times by 25 percent,” he said. “The platform also expanded partnerships with neighborhood retailers, ensuring customers had access to essentials without supply-chain bottlenecks. This kind of data-driven agility will define the next phase of e-commerce in Saudi Arabia.”

Tharmaratnam said that mobile commerce dominates, accounting for over 90 percent of e-commerce transactions during Ramadan, while social commerce, via WhatsApp, Instagram, and TikTok, now drives 30 percent of online sales.

He went on to emphasize that the real disruption is the shift from transactional commerce to culturally embedded, experience-driven engagement, as traditional Ramadan shopping has focused on physical markets and communal buying.

The partner stressed that today, leading e-commerce players curate AI-driven experiences that align with consumer sentiment. From AI-powered gifting suggestions to influencer-led Ramadan livestreams, brands that focus on storytelling rather than hard-selling see higher conversion rates and customer retention beyond Ramadan.

“A great example is Namshi, a leading Saudi fashion e-commerce platform. Last year, Namshi saw a 45-percent boost in sales conversion rates by combining cultural resonance with digital engagement,” Tharmaratnam said. “The platform launched AI-powered Eid styling recommendations, influencer-led ‘Suhoor Lookbooks,’ and interactive content that blended fashion with tradition. By seamlessly integrating Ramadan traditions into the online shopping journey, Namshi transformed shopping from a necessity into a personalized, experience-driven event.”

Ramadan traditions and online shopping behaviors

There is no doubt that the fundamental values of Ramadan, such as generosity, family bonding, and the distinct pattern of late-night gatherings, have a significant impact on online shopping trends in Saudi Arabia.

According to Joe Abi Akl, partner and head of Oliver Wyman’s retail and consumer practice for  India, the Middle East and Africa, there is a significant spike in demand for essential groceries, traditional fashion and thoughtful gifts, with peak activity occurring post-iftar. 

Expect a significant leap in logistics efficiency, with same-day or even instant delivery becoming more prevalent.

Joe Abi, Akl Partner and head of Oliver Wyman’s retail and consumer practice

“Savvy businesses are capitalizing on this by crafting culturally resonant marketing campaigns, curating Ramadan-specific bundles, and ensuring swift, reliable delivery that accommodates the altered daily schedules. This includes leveraging suhoor and iftar time-focused promotions,” Akl said.

Ian Khan, a technology futurist and author, noted that Ramadan is not just a time of spiritual reflection, it is also a season of significant consumer activity — and retailers in Saudi Arabia are capitalizing on this in remarkable ways.

“Take Mazeed, for example — this e-commerce platform has curated products from over 8,000 local merchants, offering items that deeply resonate with Ramadan traditions. 

“This isn’t just about sales; it’s about creating meaningful shopping experiences that align with cultural values,” Khan said.

Opportunities Ramadan e-commerce poses for businesses

Ramadan presents a prime opportunity for Saudi businesses to forge deeper customer connections through bespoke, culturally sensitive campaigns and exclusive loyalty programs.

Oliver Wyman’s Akl said that the heightened online traffic during this period allows for significant brand building and the refinement of operational efficiencies, particularly in fulfillment and delivery.

“This is also the perfect time to explore cutting-edge technologies like AI-powered chat commerce — which offers personalized customer service — and strategic influencer partnerships that resonate with the Saudi audience,” he added.

ADL’s Tharmaratnam suggested Ramadan is an opportunity not just to increase sales, but to build enduring digital-engagement strategies. 

HIGHLIGHT

Mobile commerce accounts for over 90 percent of e-commerce transactions during Ramadan, while social commerce, via WhatsApp, Instagram, and TikTok, now drives 30 percent of online sales.

“The Kingdom’s population growth — 2.5 percent annually — and urban expansion are driving a fundamental shift in how businesses approach fulfillment, customer experience, and personalization. Instead of treating Ramadan as a short-term promotional window, brands that invest in AI-driven customer retention strategies and logistics optimization will see sustained post-Ramadan growth,” Tharmaratnam said.

“The biggest disruption comes from AI-driven conversational commerce. With WhatsApp and chatbot-based shopping now accounting for 25 percent of digital transactions, brands must rethink how they engage customers,” he added.

Moreover, supply-chain transparency is becoming a differentiator. Real-time delivery tracking and blockchain-enabled halal verification will build trust in Ramadan purchases, especially in the $6 billion halal food and fashion market, the ADL partner highlighted.

“An example of this is Cenomi, Saudi Arabia’s largest retail group, which seamlessly blends physical and digital commerce. By integrating augmented reality shopping experiences, in-store pickup for online orders, and AI-driven product recommendations, Cenomi saw a 30-percent Ramadan sales boost in 2023. This ‘phygital’ approach — combining the best of physical and digital shopping — will define the future of Ramadan commerce in the Kingdom,” Tharmaratnam said.

Khan told Arab News that shopping app installations in Saudi Arabia surged by 67 percent during Ramadan in 2024, in what is “clear indicator” of how mobile-first commerce is shaping the future.

He added: “Consumer spending follows this trend. In 2024, 64 percent of foreign nationals in Saudi Arabia reported higher expenditures during Ramadan, reinforcing the economic impact of the season. And across the Middle East and North Africa, e-commerce transactions shot up by 23 percent, with Gross Merchandise Value climbing 13 percent. This is the power of Ramadan in the digital age — blending tradition with technology to fuel unprecedented growth.”

Ramadan e-commerce projections and alignment with Vision 2030

From Oliver Wyman’s perspective, Akl explained that Ramadan e-commerce in Saudi Arabia this year will be driven by sophisticated AI personalization, ensuring shoppers receive highly relevant offers and recommendations.

“Expect a significant leap in logistics efficiency, with same-day or even instant delivery becoming more prevalent. Live shopping and social commerce will be integral, creating interactive and engaging experiences,” he said. “Furthermore, embedded finance solutions will streamline transactions, fostering frictionless purchasing.”

Akl went on to highlight that this evolution directly supports Saudi Vision 2030’s digital-transformation goals, building a robust, tech-enabled retail landscape that prioritizes convenience and expands consumer choice, directly contributing to the Kingdom’s economic diversification.

ADL’s Tharmaratnam noted that in 2025 Saudi Arabia’s e-commerce sector will be worth $20 billion, and the way consumers interact with digital platforms continues to evolve at an exponential pace.

“Ramadan commerce will shift from being reactive to predictive and personalized, driven by AI-powered shopping assistants, voice commerce, and health-integrated marketplaces. Consumers won’t just be browsing for products — they’ll be receiving real-time, AI-curated recommendations based on their dietary preferences, health conditions, and fasting habits,” he said.

Vision 2030 is pushing for a cashless economy, targeting 70 percent digital payments by 2025, as well as the expansion of smart logistics networks and the integration of digital health tools into everyday life. This means Ramadan e-commerce will no longer be just about selling — it will be about enabling better, healthier choices.

The partner explained that virtual dietitians, AI-powered hydration monitoring, and smart pharmacy solutions will be embedded directly into e-commerce experiences.

“A preview of this is already happening with SehhaTech, an AI-driven health-commerce platform in Saudi Arabia. SehhaTech integrates digital pharmacy services, health coaching, and e-commerce, allowing users to buy fasting-friendly supplements, receive medication adherence reminders, and even book telehealth consultations,” Tharmaratnam said.

“During Ramadan, these services saw a 150-percent increase in engagement, proving that consumers aren’t just looking for products — they’re looking for intelligent, personalized health solutions integrated with their shopping experiences,” he added.

Khan believes that as Saudi Arabia pushes toward Vision 2030 and a fully digital economy, the Ramadan rush will only become more sophisticated.

“AI-driven personalization, seamless fintech solutions, and hyper-efficient logistics will redefine the shopping experience. Businesses that understand this intersection of culture and technology will be the ones that thrive,” he said.


IMF appoints first mission chief to Syria in 14 years

Updated 23 sec ago
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IMF appoints first mission chief to Syria in 14 years

BEIRUT: The International Monetary Fund has appointed Ron van Rooden as head of its mission to Syria, the country’s Finance Minister Mohammed Yosr Bernieh said in a written statement, making him the first country mission chief since war erupted there 14 years ago.

Bernieh said van Rooden’s appointment came “following our request” and he shared a post on LinkedIn, showing himself shaking hands with van Rooden while attending the annual IMF-World Bank Spring meetings in Washington, D.C.

“This important appointment marks an important step and paves the way for constructive dialogue between the IMF and Syria, with the shared objective of advancing Syria’s economic recovery and improving the well-being of the Syrian people,” Bernieh wrote.

The IMF press office did not immediately respond to a request for comment. A source familiar with the IMF’s decisions on Syria confirmed van Rooden’s appointment.

According to the IMF’s website, Syria has had no transactions with the fund in the last 40 years. The last IMF mission trip to Syria was in late 2009, more than a year before protests against then-leader Bashar Assad erupted.

Assad’s crackdown triggered a full-scale war that left much of the country destroyed before he was ousted in a lightning rebel offensive last December, with an Islamist-led government now ruling the country.

The new leaders have been keen to re-establish Syria’s ties regionally and internationally, rebuild the country and secure the lifting of tough US sanctions to kickstart its economy.

Bernieh and Syria’s central bank chief Abdelkader Husrieh are attending the annual spring meetings in Washington, the first time a high-level Syrian government team attends the meetings in at least two decades, and the first official visit by Syria’s new authorities to the US since Assad’s fall.

On Tuesday, the Saudi finance minister and the World Bank co-hosted a roundtable on Syria. Bernieh, in a separate LinkedIn post, described the roundtable as “very successful” and said there was “unprecedented” interest in supporting Syria’s reconstruction.

A top official from the UN Development Programme told Reuters last week the agency is planning to deliver $1.3 billion in support to Syria over the next three years. 


TASI closes in green at 11,681, gaining 0.82%

Updated 47 min 31 sec ago
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TASI closes in green at 11,681, gaining 0.82%

RIYADH: Saudi Arabia’s Tadawul All Share Index concluded Wednesday’s trading session at 11,681.11 points, marking an increase of 94.71 points or 0.82 percent.

The total trading turnover of the benchmark index was SR6.066 billion ($1.617 billion), as 189 of the listed stocks advanced, while 54 retreated.

The MSCI Tadawul Index also surged by 14.14 points, or 0.96 percent, to close at 1,488.74

The Kingdom’s parallel market Nomu reported an increase as well, gaining 181.35 points, or 0.64 percent, to close at 28,463.11 points. This comes as 48 of the listed stocks advanced while as many as 34 retreated.

The index’s top performer, Musharaka REIT Fund, saw a 10 percent increase in its share price, closing at SR4.84.  

Other top performers included Al-Baha Investment and Development Co., which saw a 9.97 percent increase to SR3.31, while Mulkia Gulf Real Estate REIT’s share price rose 9.96 percent to SR5.52. 

Alistithmar AREIC Diversified REIT Fund also recorded a positive trajectory, with share prices rising 9.92 percent to reach SR6.90.

Allied Cooperative Insurance Group was TASI’s worst performer, with the company’s share price falling by 3.35 percent to SR15. 

Etihad Etisalat Co. followed with a 3.17 percent drop to SR61. This decline comes after the firm’s consolidated interim financial results for the first quarter.

The company reported a 20.21 percent increase in its net profit, reaching SR 767 million, compared to the same period in 2024.

Saudi Printing and Packaging Co. also saw a notable decline of 3.03 percent to settle at SR 12.80. 

On the parallel market, National Building and Marketing Co. was the top gainer, with its share price surging by 9.88 percent to SR198.

Other top gainers in the parallel market were Arabian Plastic Industrial Co. and Ghida Alsultan for Fast Food Co., with their share prices surging by 8.51 percent and 5.65 percent, to reach SR51 and SR44.9, respectively.

Al Mohafaza Co. for Education was the major faller on Nomu, as the company’s share price slipped by 9.59 percent to SR23.10.

Yamama Cement Co. also announced its financial results for the first quarter of 2025, reporting a 23.51 percent increase to SR142 million compared to the same period of last year.

The company said in a statement on Tadawul that the increase in profit was mainly due to an annual rise in the average selling price and an increase in sales volume for the current quarter.

The firm’s share price closed on Wednesday’s session at SR36.7, increasing by 2.92 percent.


Saudia Group orders 20 Airbus A330neo jets to fuel fleet expansion

Updated 23 April 2025
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Saudia Group orders 20 Airbus A330neo jets to fuel fleet expansion

RIYADH: Saudia Group has signed a new agreement with Airbus to acquire 20 wide-body A330neo aircraft, including 10 confirmed orders for its low-cost carrier flyadeal, as part of its fleet expansion strategy. 

The deal, finalized at Airbus’s facility in Toulouse, France, reinforces the group’s ambitions to enhance operational efficiency and expand destination coverage, aligning with Saudi Arabia’s Vision 2030. 

With deliveries scheduled between 2027 and 2029, the acquisition marks a continuation of Saudia Group’s broader modernization plan, which includes a 2023 order for 105 Airbus aircraft. 

A330neo’s long-range capability and fuel efficiency are expected to play a central role in supporting the Kingdom’s goals of connecting to 250 destinations and transporting 330 million passengers annually.  

The agreement aligns with the Kingdom’s broader trend of making multiple Airbus aircraft purchases. 

In October, Riyadh Air signed a deal to purchase 60 Airbus A321neo aircraft. In July, the Royal Saudi Air Force signed a contract with Airbus for four additional A330 Multi Role Tanker Transport aircraft. 

The deal was signed by Saleh Eid, vice president Fleet Management and Agreements at Saudia Airlines, and Benoit de Saint-Exupery, executive vice president of Commercial Aircraft Sales at Airbus, in the presence of Ibrahim Al-Omar, director general of Saudia Group and Christian Scherer, CEO of the Commercial Aircraft business of Airbus. 

Al-Omar emphasized the significance of the deal as a continuation of the group’s ambitious strategy to expand and modernize its fleet. 

He noted that this agreement follows a previous order of 105 Airbus aircraft in 2023 and supports national strategies under Vision 2030 aimed at reaching 250 destinations, transporting 330 million passengers, and attracting 150 million tourists annually. 

Benoit de Saint-Exupery welcomed the order as a strategic advancement for both parties. 

“Saudia Group’s order for A330neo aircraft for flyadeal is a crucial step toward enabling the Kingdom’s long-haul expansion and attracting a broader range of passengers,” he said. 

“The aircraft’s proven efficiency, versatility, and passenger experience make it the right fit for Saudia Group’s strategic growth,” he added. 

Saudia Group currently operates a fleet of 194 aircraft across its commercial, low-cost, cargo, and logistics divisions. 

With an additional 191 aircraft expected to be delivered in the coming years, the group is advancing its position as a key enabler of Saudi Arabia’s aviation sector and broader national development initiatives.


Saudi Arabia, Ethiopia target key sectors in push to deepen economic ties

Updated 23 April 2025
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Saudi Arabia, Ethiopia target key sectors in push to deepen economic ties

JEDDAH: Saudi Arabia and Ethiopia plan to boost economic cooperation in key sectors — including agriculture, manufacturing, and tourism — as officials from both nations met at a forum in Riyadh. 

The event, organized by the Federation of Saudi Chambers, brought together more than 150 representatives from the public and private sectors of both countries, the Saudi Press Agency reported, and marked the first major gathering since the establishment of the Saudi-Ethiopian Business Council last year. 

The initiative aligns with Saudi Arabia’s strategy to strengthen economic ties with African nations and explore new investment opportunities and markets, recognizing Ethiopia’s potential as a favorable investment environment, a key trade gateway to the continent. 

Ethiopia’s State Minister for Trade and Regional Integration Abdulhakim Mulu invited Saudi investors to explore opportunities in key sectors including agriculture, food industries, and tourism, as well as hospitality and manufacturing.  

He emphasized Ethiopia’s rapid economic growth and the government’s commitment to improving infrastructure and fostering a favorable investment climate. 

Federation of Saudi Chambers Chairman Hassan Al-Huwaizi stated that Saudi Arabia is actively working to strengthen its relations with African countries, particularly Ethiopia, which serves as a strategic gateway for Saudi exports to the continent. 

“He noted Ethiopia’s natural resources and potential in agriculture, food industries, and mining, adding that the limited trade volume, which is merely SR1.3 billion ($347.1 million), indicates untapped investment opportunities,” SPA reported. 

The Saudi-Ethiopian Business Council was formally approved by the Saudi General Authority for Foreign Trade last year to enhance bilateral trade and investment. Its formation followed agreements reached during a prior forum held on June 5 in Addis Ababa. 

As both nations seek to deepen their economic engagement, the council is expected to play a pivotal role in unlocking new opportunities, boosting bilateral trade, and fostering a more integrated economic partnership between Saudi Arabia and Ethiopia. 

According to a 2024 World Bank report, Ethiopia — home to 126.5 million people as of 2023 — is the second most populous nation in Africa and one of the continent’s fastest-growing economies, recording a 7.2 percent growth rate in the 2022/2023 fiscal year. 

Despite this progress, Ethiopia remains one of the world’s poorest countries, with a gross national income per capita of $1,020. The country aims to achieve lower-middle-income status by 2025, building on years of infrastructure-driven growth that have helped reduce poverty and improve access to essential services. 


Saudi Arabia ranks 1st in region, 6th in G20 for geospatial infrastructure

Updated 23 April 2025
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Saudi Arabia ranks 1st in region, 6th in G20 for geospatial infrastructure

RIYADH: Saudi Arabia has climbed to ninth place in the 2025 Geospatial Knowledge Infrastructure Readiness Index, up from 32nd in 2022, reflecting steady progress in its spatial sciences sector.

Represented by the General Authority for Survey and Geospatial Information, the Kingdom ranked first in the Middle East and the Arab world, and sixth among G20 nations, in the index, according to a statement. 

Created by the Geospatial World and backed by the UN Statistics Division, the GKI Readiness Index serves as a strategic tool to assess how prepared countries are to adopt geospatial knowledge, highlighting its role in driving economic growth, sustainable development, and digital transformation. The index is based on several axes.

The newly released rankings align with Saudi Arabia’s ongoing progress in global indices, including a 17.5 percent score increase in the 2025 Global Intellectual Property Index. This places the Kingdom among the fastest-improving economies out of the 55 countries evaluated.

They also align well with Saudi Arabia’s strategic objectives for expanding its commercial space operations and advancing innovative satellite solutions locally and globally. 

In the newly released statement, GEOSA said: “The Kingdom ranked sixth globally in the Policy Axis, thanks to its pioneering experience in governing the national geospatial data system and developing its policies, standards, and specifications in accordance with international best practices.” 

“It ranked seventh globally in the Infrastructure Axis, due to its pivotal role in unifying national efforts related to geospatial information, including the development of the National Geospatial Platform, which represents a window into the national geospatial infrastructure available to the public and private sectors, as well as the academic and non-profit sectors and individuals. It ranked eighth globally in the Geospatial Industry Axis, demonstrating its constructive role in establishing strategic partnerships with various sectors,” it added. 

The statement further indicated that the Kingdom’s advancement in the index highlights the continuous support provided by its leadership and the minister of defense, who also chairs the GEOSA Board of Directors for the survey and geospatial information sector. 

This support has propelled Saudi Arabia to a prominent position both regionally and internationally, placing it at the forefront of developed nations in the geospatial sector, the statement explained. 

This advancement also resulted in Riyadh being selected as the home of the UN Global Geospatial Ecosystem Center of Excellence, thereby reinforcing the Kingdom’s status as a global frontrunner in cutting-edge geospatial information management. 

In March, Neo Space Group, a satellite and space firm under Saudi Arabia’s sovereign wealth fund, partnered with Beijing-based SuperMap Software to enhance technological capabilities and support the Kingdom’s Vision 2030 goals.