AI, digital payments and youth fueling Saudi Arabia’s e-commerce boom

 



 Saudi Arabia is experiencing a major digital transformation in its e-commerce sector, driven by artificial intelligence (AI), digital payments, and a tech-savvy youth population.


📈 Rapid E-Commerce Growth

  • The Saudi e-commerce market is projected to reach $708.7 billion by 2033, nearly three times its current size.

  • Growth is fueled by a young, highly connected population, with 98% of Saudis online and one of the highest smartphone penetration rates globally.


🤖 AI Enhancing Customer Experience

  • AI-powered tools like visual search are increasingly adopted, with 53% of buyers in the MENA region having used such technologies for online shopping.

  • This trend highlights a growing demand for personalized and interactive shopping experiences.


💳 Digital Payments Adoption Soars

  • In 2024, 79% of retail transactions in Saudi Arabia were digital, up from 70% in 2023.

  • Real-time payment systems such as Sarie, launched in 2021, recorded 593 million transactions in 2024.

  • The Saudi central bank (SAMA) has launched Google Pay locally and announced a partnership with Ant International to enable Alipay+ acceptance by 2026, strengthening the Kingdom’s digital payments infrastructure.


👥 Youth as a Key Driver

  • Over 60% of Saudi Arabia’s population is under 30, making this generation central to the digital revolution.

  • They favor online shopping, mobile payments, and personalized experiences.

  • In March 2025, online sales surged by 73% year-over-year, reaching 27.5 billion SAR (~$7.4 billion).


🚀 Vision 2030 and Strategic Digital Growth

  • As part of Vision 2030, Saudi Arabia aims to diversify its economy, reduce reliance on oil, and grow its digital sector.

  • The goal is to build a $133 billion digital economy by 2030, supported by investments in fintech, e-commerce, and mobile payments.

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