Saudi Arabia’s e-commerce sector achieves impressive 32% annual growth in Q1 2023

In the Kingdom of Saudi Arabia, the e-commerce industry has witnessed remarkable growth, exhibiting an impressive annual increase of over 32 per cent in the first quarter of 2023. During this period, a total of 4,093 commercial registers were issued, showcasing the rapid expansion of e-commerce businesses compared to the 3,499 registers issued in the same quarter of the previous year.

According to the business bulletin released by the Ministry of Commerce, the city of Riyadh took the lead by issuing the highest number of commercial registers with a total of 13,195. It was followed by Makkah with 8,605 registers and the Eastern Region with 5,294 registers. Other notable regions include Madinah and Al-Qassim, which issued 1,649 and 1,107 registers respectively.

The growth of the e-commerce sector is closely aligned with the objectives of the National Transformation Program, which supports the realization of Saudi Arabia’s Vision 2030. As one of the top 10 countries experiencing significant growth in the e-commerce field, Saudi Arabia demonstrated a remarkable 17 per cent growth rate in the first quarter of 2023. This highlights the Kingdom’s recognition of the vital role played by e-commerce in enhancing the national economy.

To facilitate the transition of entrepreneurs from traditional trade to e-commerce, the Saudi e-commerce system provides a range of entities offering essential services. These services include electronic payment solutions, digital marketing support, and technical assistance. Furthermore, these entities contribute to the establishment of electronic markets, provide logistics solutions, and offer platforms for the development of online stores.

The Saudi E-Commerce Council, operating under the Ministry of Commerce, is actively involved in strengthening the reliability of e-commerce platforms, increasing their contributions to the national economy, and promoting the growth and development of e-commerce activities across the Kingdom.