E-commerce in Saudi Arabia: Key Information

Amidst the global surge in technological advancements, the widespread use of the internet has given rise to a new paradigm in business known as ‘e-commerce.’ This innovative approach involves delivering services and products to consumers through online platforms. Notably, Saudi Arabia stands as one of the world’s largest and most dynamic e-commerce markets. In this article, we delve into the e-commerce landscape in KSA, exploring its advantages and distinctive characteristics.

Overview of E-commerce in Saudi Arabia

E-commerce refers to economic activities conducted, wholly or partially, through electronic platforms, involving transactions between service providers and consumers. These transactions encompass service provisions, product sales, data exchange, and advertising. In Saudi Arabia, e-commerce first emerged in 2001 and has since flourished, propelling KSA to the forefront of global e-commerce markets.

By the end of Q1 2025, Saudi Arabia’s e-commerce sector recorded 41,322 active commercial registrations, reflecting a 6% year-on-year increase.

E-commerce Fundamentals in Saudi Arabia

E-commerce in Saudi Arabia thrives due to several fundamental elements that foster its growth:

• The E-commerce Law: Introduced in 2019, the E-commerce Law regulates online transactions, protecting the rights of consumers and merchants against fraud. Its aim is to build trust in electronic transactions and fortify this evolving commerce landscape.
• E-commerce Facilities: Various governmental online platforms streamline the necessary procedures for engaging in e-commerce. The Maroof platform, for instance, expands the reach of e-stores to a broader customer base. Additionally, the Saudi Business Center authenticates e-commerce platforms, while the freelance program is tailored for handicrafts, rural trade, and productive families.
• Initiatives and Strategies Supporting E-commerce: Due to its pivotal role in supporting the national economy and attracting investments, e-commerce is always a priority for KSA, with continuous efforts being taken to increase its demand and address any issues that may hinder the utilization of e-commerce services and products. Such initiatives and strategies include:

○ Educating consumers about e-commerce and safeguarding their sensitive information.

○ Fostering trust in e-payment methods.

○ Advancing the ICT infrastructure across the Kingdom.

○ Backing merchants, SMEs, and local projects in e-commerce initiatives.

○ Enhancing the logistics and transport sector, vital for the e-commerce ecosystem.

• Other Features: Increasing interest in e-commerce by the Saudi government, proliferation of smartphones, and increased interest in this sector by Saudi youth.

Tips for E-commerce Enthusiasts in Saudi Arabia:

If you’re considering entering the realm of e-commerce in Saudi Arabia, here are some invaluable tips drawn from pertinent laws, regulations, studies, and publications:

• Seek guidance and advice from specialists or experts before launching your e-commerce venture.
• Ensure strict adherence to e-commerce laws and regulations, fulfilling all necessary requirements.
• Safeguard consumer data and privacy rigorously, promptly addressing any platform vulnerabilities or breaches.
• Maintain a 24/7 availability to receive and manage consumer complaints effectively.
• Verify the accuracy of all information displayed on your online store.
• Avoid presenting misleading or false information in your advertisements.

Launching an online store in Saudi Arabia involves specific requirements. You can learn about them in this Article Conditions of Opening an Online Store in Saudi Arabia.

If you wish to engage in e-commerce in Saudi Arabia, we recommend using our specialized services for licensing, project establishment, and seamless government registration on official platforms. You can also use our services to learn more about e-commerce and how to turn a profit and gain consumers’ trust. Contact one of Moltazim experts by requesting a free 1 on 1 compliance advice or via WhatsApp now!

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References:

• The E-commerce Law
• Guide on Electronic Stores
• E-commerce Council
• E-commerce in the Kingdom of Saudi Arabia
• E-commerce in Saudi Arabia
• The E-commerce Law
• E-commerce
• About Maroof
• Freelance.sa
• E-Commerce Authentication
• Monsha’at