Prime Highlights:
Saudi e-commerce sales via Mada cards hit $4.65 billion in November 2024, a 29.4% year-on-year growth.
The surge includes online shopping, in-app purchases, and e-wallet transactions, excluding credit card payments.
E-commerce transactions saw a 26.49% rise, totaling nearly 99 million transactions in November.
Key Background:
Saudi Arabia’s e-commerce sector has shown impressive growth, with sales conducted via Mada cards reaching SR17.44 billion ($4.65 billion) in November 2024, marking a significant 29.4% increase compared to the same period last year. The figures, provided by the Saudi Central Bank, encompass various forms of digital transactions, including online shopping, in-app purchases, and e-wallet activities, but exclude payments made with international credit cards such as Visa and MasterCard.
This uptick in e-commerce activity aligns closely with Saudi Arabia’s Vision 2030 goals, which aim to make digital commerce account for 80% of the retail sector by the year 2030, with 70% of transactions being conducted online. Mada, the Kingdom’s national payment card system, plays a crucial role in this transformation by supporting secure debit and prepaid card services. Using near-field communication (NFC) technology, Mada cards facilitate seamless contactless payments both at physical retailers and for online transactions.
In addition to the rise in sales, the number of e-commerce transactions also witnessed a remarkable surge. Nearly 99 million transactions were recorded in November, a 26.49% increase from the previous year. This growth can be attributed to various demographic and economic factors, including the Kingdom’s young and tech-savvy population, with 60% of its citizens under the age of 30.
Rising disposable incomes, fueled by an expanding middle class and increasing dual-income households, are also driving consumer spending. Furthermore, a growing number of expatriates in the country contribute to the heightened demand for digital services and products. The growth of e-commerce is further supported by infrastructural advancements, including the construction of modern shopping centers and cities. By the fourth quarter of 2024, the Ministry of Commerce reported that the number of e-commerce businesses had increased by 10%, with Riyadh, Makkah, and the Eastern Province leading in new business registrations. In parallel, the fintech sector also showed substantial growth, with 3,152 new fintech businesses recorded, marking a 12% year-on-year increase. Together, these developments underscore Saudi Arabia’s push
towards a digital and diversified economy, positioning the Kingdom as a leading player in the global e-commerce landscape.
