Mada drives Saudi e-commerce with 72% surge to $7bn in June 

According to data by the Saudi Central Bank, also known as SAMA, the number of online payments also jumped, rising 59.4 percent to 141.55 million transactions across shopping websites, in-app purchases, and e-wallets. Shutterstock
Short Url
Updated 31 August 2025
Follow

Mada drives Saudi e-commerce with 72% surge to $7bn in June 

RIYADH: E-commerce spending in Saudi Arabia via Mada cards rose 72 percent year on year to SR25.97 billion ($6.93 billion) in June, underscoring the Kingdom’s accelerating shift to cashless retail. 

According to data by the Saudi Central Bank, also known as SAMA, the number of online payments also jumped, rising 59.4 percent to 141.55 million transactions across shopping websites, in-app purchases, and e-wallets. 

These figures exclude transactions completed on international credit card schemes such as Visa and Mastercard, highlighting the scale of domestic rails in powering the digital economy. 

Mada, the national payments scheme operated by Saudi Payments, a SAMA-owned entity, connects banks, ATMs and point-of-sale terminals, and underpins debit cards issued by local banks, making it the backbone of everyday spending and online checkout. Its deep integration across the banking system and payment gateways enables swift, secure processing for in-store and e-commerce purchases, complementing global schemes. 

This push is part of the Kingdom’s Vision 2030 drive to become a largely cashless society, raising the share of electronic retail payments and embedding trusted local rails across everyday commerce. Saudi authorities are also upgrading the rails behind the checkout button. 

Earlier this summer, SAMA launched a new e-commerce payments interface that lets providers rely on national infrastructure while integrating Mada with international networks, aimed at improving speed and security for merchants and consumers.  

In May, regulators reported near-universal connectivity: CST’s Saudi Internet Report showed 99 percent of residents are online and 93 percent of e-commerce purchases are made on local websites. 

The report also highlighted Saudi Arabia’s global edge on network metrics, with average mobile data use reaching 48 gigabytes per person per month, about three times the global average. 

On the rails side, Mastercard has built local e-commerce processing infrastructure in the Kingdom, keeping transactions in-country and supporting faster, more secure checkout. 

Together, these signals point to a larger, more reliable online market in which Mada-enabled checkout, quick delivery, and easy returns are becoming the norm.  

A February PwC read on the Kingdom’s retail landscape highlighted how Saudi Arabia’s young, empowered and tech-oriented consumers are reshaping demand. 

PwC’s Voice of the Consumer 2024 survey for Saudi Arabia showed rising expectations around sustainability, digital innovation, and health, with data privacy a core concern and a growing appetite for artificial intelligence-enabled shopping tools. 

Trust was highest in healthcare and aviation at eight out of 10, driven by strong data protection at 86 percent, fair treatment of employees at 80 percent, and consistent, high-quality service at 80 percent. 

Inflation remained a key worry for 36 percent, yet eco-consciousness is strengthening: About 45 percent actively seek eco-friendly products, and roughly 18 percent would pay 11 to 20 percent more for locally sourced or recycled goods. 

Shoppers are pragmatically open to technology, valuing fast chatbot support, while still wanting in-store experiences enhanced by contactless and self-checkout. 

That consumer profile dovetails with macro confidence among executives: 77 percent of Saudi CEOs were positive on the near-term economic outlook, according to PwC’s 28th Annual CEO Survey, supporting continued investment in digital commerce and customer experience. 

Partnerships are scaling logistics and payments capacity. In July, Maersk and Saudi Post signed a strategic partnership to knit together cross-border logistics with local last-mile networks, streamlining fulfillment, customs clearance and delivery for merchants entering Saudi Arabia and the wider Gulf Cooperation Council. 

DHL e-commerce expanded into the Kingdom by taking a stake in AJEX, adding domestic parcel capacity as volumes rise. And to sharpen policy and measurement, Saudi Arabia committed $1.4 million to UNCTAD to improve official statistics on e-commerce and the digital economy. 

On the checkout side, Amazon Payment Services added Tamara as a Buy Now, Pay Later partner across Saudi Arabia and the UAE, broadening flexible payment options that often lift conversion at online merchants. 

For merchants and investors, the opportunity lies in converting demand into repeatable scale. On the front end, that means optimizing mobile journeys, localized payment options, and transparent data-privacy practices that build trust with digitally sophisticated consumers. 


From consumers to creators: Saudi Arabia is engineering its own AI future

Updated 51 min 33 sec ago
Follow

From consumers to creators: Saudi Arabia is engineering its own AI future

  • KSU is training engineers to not just use AI, but design the systems

ALKHOBAR: King Saud University’s College of Engineering is positioning itself as a proving ground for a new kind of Saudi engineer — one who treats AI not as a mere software tool, but as an engineering layer that redefines how the Kingdom designs infrastructure, energy systems, defense technologies, communications networks, and smart materials.

This transformation is not cosmetic. It is structural, embedded deep in the curriculum, linked with industry, and aligned with a national mandate. “KSU’s College of Engineering is aligning its AI push squarely with Vision 2030 toward building a talent base to deliver on the 66 of 96 national objectives linked to data and AI,” said Abdulelah Alshehri, assistant professor of chemical engineering at the college. 

“The result would be engineers who do not just adopt tools, but create local and superior technologies that boost competitiveness, security, and a knowledge economy.”

King Saud University and Saudi Data & AI Authority unite to advance AI-driven education. (Supplied)

The shift reflects a broader reality: AI is no longer an isolated discipline buried inside computer science departments. It has become a force multiplier shaping which nations lead in defense autonomy, manufacturing localization, space systems, medical devices, energy optimization, and the next generation of 6G networks. To lead, engineers must understand physics, hardware, data, and algorithms as a unified system, not as separate domains.

“Future engineers should not be just AI users; they would architect the systems within which AI is implemented,” said Alshehri. “They would frame the problem and data, build and test AI models, and finally fuse algorithms with hardware, safety and regulation so systems act responsibly in the real world.”

Opinion

This section contains relevant reference points, placed in (Opinion field)

This vision is being formalized through KSU’s flagship AI for Engineering Center, approved for launch in 2025. The center merges academic research with real-world application, acting as a living testbed where students and researchers develop and test AI-driven solutions for energy, autonomous mobility, national defense, and environmental analytics. By connecting university labs directly with industry needs, the center accelerates prototyping, real-data validation, and faster deployment for sectors such as energy and mobility.

The transformation also reaches classrooms. The college has introduced a new bilingual AI and Engineering curriculum that treats AI and engineering as one language with two alphabets: physics and data. “Unlike traditional programs where AI is a late-stage elective, KSU’s bilingual model teaches engineering students to think in two languages from day one,” Alshehri said. 

Abdulelah Alshehri, assistant professor of chemical engineering. (Supplied)

Graduates will leave with AI literacy embedded in labs, capstones, and industry projects — not as a certificate, but as a default competency.

Majid Altamimi, dean of the College of Engineering, describes this decision as a response to the speed of global change.

“We realized that artificial intelligence is transforming every field of engineering. It is becoming the key to building smarter systems, complex automation, and creating more sustainable designs,” he said. “By weaving AI into everything we teach and research, we are ensuring our graduates are not just ready for the future, they are ready to shape it.”

Majid Altamimi, dean of KSU's College of Engineering. (Supplied)

That ambition is already taking physical form. The KSU college has inaugurated two AI-driven specialized labs, one focused on communication networks and the other on advanced materials, both aligned with national industrial priorities. “Our new labs in communication networks and advanced materials are designed to turn great ideas into real-world products,” Altamimi said.

“In one lab, we’re working on the next wave of connectivity like 6G and IoT. In the other, we’re creating new, smarter materials for energy and sustainability. Crucially, we work hand-in-hand with industry partners to prototype and test these innovations, ensuring our research makes a tangible impact on Saudi Arabia’s technological competitiveness,” he added.

DID YOU KNOW?

• KSU’s College of Engineering trains Saudi engineers to design AI systems, not just use them. The college is aligning its AI push squarely with Vision 2030 toward building a talent base. It is ensuring that its graduates are not just ready for the future, they are ready to shape it.

• The college is aligning its AI push squarely with Vision 2030 toward building a talent base.

• It is ensuring that its graduates are not just ready for the future, they are ready to shape it.

KSU is also expanding its international footprint through deep collaboration with leading global universities. The College has signed five two-year partnerships with UCL, NUS, Tsinghua, Shanghai Jiao Tong, and Zhejiang University to advance joint research, faculty exchange, and dual-degree programs. These collaborations provide students and researchers access to world-class expertise, strengthening KSU’s research capacity and reinforcing Saudi Arabia’s position as an emerging global innovation hub.

Yet the most strategic value of the College’s pivot may not lie in its labs or partnerships, but in its timing. Saudi Arabia has already built the infrastructure for an AI economy through sovereign cloud platforms, national data policies, and hyperscale compute deals. The next bottleneck is talent. The Kingdom needs engineers capable of building 6G-secure networks, autonomous defense systems, AI-guided energy grids, and locally designed materials — not just operating imported software.

AI-driven communication research at KSU explores next-generation 6G and IoT connectivity to power Saudi Arabia’s smart cities. (CCNull image)

“Tomorrow’s engineering is AI-defined from grids that self-optimize, materials discovered by algorithms, to autonomous systems coordinating at city scale,” Alshehri said. “Future engineering graduates who can architect these agentic, trustworthy systems will power Vision 2030’s diversification.”

This is the quiet race beneath the AI headlines: not who installs AI, but who engineers it. Not who consumes compute, but who designs the systems that require it. Not who imports models, but who trains the minds that build sovereign ones.

A 3D printing and prototyping lab at King Saud University supports hands-on AI engineering projects and technology localization under Vision 2030. (Supplied)

Alshehri believes the coming decade will belong to Saudi engineers ready to lead with curiosity, ethics, and skill. “The nation is investing and offering tremendous opportunities and the world is watching, so be curious, ethical, hands-on so we can lead the shift from using engineering tools to creating them in the new era of AI-driven engineering,” he said.

KSU’s bet is that the next great Saudi breakthrough will not come from a cloud console, but from a lab table where equations, code, and national strategy meet.