Saudi e-commerce market to surpass $25 billion by 2026: report

08/10/2019 Argaam
by Sunil Kumar Singh

 

Saudi Arabia e-commerce market is anticipated to surpass $25 billion by the end of 2026, according to a new report by ResearchAndMarkets.com on Monday.

 

The growth is driven by increasing mobile and internet penetration, advances in technology such as big data & cloud-based e-commerce platforms, sophisticated shipping and payment options, and increasing disposable revenue, the report added.

 

Over the previous few years, Saudi economy has witnessed unprecedented development, the report noted, adding that the National Transformation Program (NTP) and Vision 2030 envisage a multi-faceted economic development, both of which set out important plans to help achieve this goal.

 

“Enabling financial diversification, driving growth in the SME segment and fostering innovation and entrepreneurship is at the core of these goals, and developing the e-commerce industry as part of the NTP will add additional fuel to these economic development plans,” the ResearchAndMarkets.com report maintained.

 

Convenience is the main driver of the general development of the online shopping industry in Saudi Arabia, ResearchAndMarkets.com noted, while adding that trends have shown that in comparison with retail shops, products available online are lesser in price.

 

“The other primary factors expected to drive internet buying are discounts, offers, and cash-on-delivery facilities for online retailers. Initiatives of companies like Amazon, Emmar Group and Jarir Marketing are also a growth factor for Saudi Arabia e-commerce market,” the report added.

 

Amazon (Souq), eBay, Namshi, Noon and Jarir Marketing (Bookstore), are some of the big companies operating in Saudi Arabia’s e-commerce market, which has been analyzed thoroughly in the report.

 

Write to Sunil Kumar Singh at sunil.kumar@argaamplus.com

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