2024 Saudi Arabian e-commerce market, trends, rankings
Saudi Arabia is a large and still growing market. In this e-commerce report, we will take you to understand the advantages and disadvantages of the Saudi Arabian market, business culture, trade growth, mobile market, and the latest developments in e-commerce.
Saudi Arabia ranks 47th in the world in terms of population, with over 45% of the population under the age of 24. Islam is the official religion of the country, and the country follows Islamic law. Despite having a large community of foreigners (immigrants make up over 30% of the population), non Muslims are denied citizenship. 83.1% of Saudis live in urban areas, with over 6 million residing in the capital city of Riyadh.
Saudi Arabia's economy is dominated by oil, which accounts for nearly 42% of the country's GDP. After a significant drop in oil prices, the government has recently been attempting to achieve economic diversification through private investment in healthcare and tourism, as well as improvements in telecommunications and natural gas exploration. As of 2022, Saudi Arabia's GDP is 1.11 trillion US dollars.
Top 10 imported goods from Saudi Arabia
Technology (machines, pumps, etc.)automobileElectronic devicesIron and SteelPrecious metals (mainly gold and jewelry)druggrainMedical equipmentplastic
In this import list, Saudi Arabia's fastest-growing markets are precious metals, automobiles, and pharmaceuticals. Steel, both in product and natural form, has lagged behind in recent years, with a decrease of nearly 23%.
Internet penetration
Saudi Arabia has a very high Internet penetration rate, especially compared with other countries in the Middle East and the Gulf Cooperation Council. Saudi Arabia. About 35.95 million Saudis use the Internet, with a penetration rate of 99.7%.
The most visited website in Saudi Arabia in 2023
youtube.com
google.com
twitter.com
mangalek.com
facebook.com
wikipedia.orgg
manga.org
witanime.com
instagram.com
tiktok.comamazon.sa
Haraj.com. sa and souq.com - both are e-commerce websites. Haraj.com is an online auction website, while souq.com is a comprehensive online store for the Middle East, similar to Amazon.com.
Haraj.com. sa
Amazon
Noon.com
Cobone.com
Global AliExpress
Jarir.com
Extrastores.com
Alibaba
Opensooq.com
About 45% of online shopping in Saudi Arabia is done through foreign websites, but more and more Saudis are looking for local sources of goods.
Saudi people's hope for the future development of e-commerce
Saudi people have identified several important factors that drive their online shopping: the reputation and credibility of websites, the reputation and security of payment platforms, and the value of goods. If the website is recommended by other Saudis or considered legal, and uses platforms such as PayPal or CashU that Saudis are familiar with, citizens are more likely to make a purchase.The most commonly purchased items are air tickets, travel expenses, groceries and home products, electronics, and clothing.However, a major obstacle to e-commerce in Saudi Arabia is the cash on delivery payment method. Many Saudis prefer cash delivery as a way to order goods online and make door-to-door payments.The fashion website Namshi reported that they found an average return rate of 40% - which is clearly an unsustainable business model. More than 90% of their business comes from cash on delivery sales. To create a successful e-commerce market targeting Saudi Arabia, it is necessary to emphasize the credibility of the website itself and payment platforms.
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