RIYADH: E-commerce sales using Mada cards in 海角直播 reached SR197.42 billion ($52.64 billion) in 2024, a year-on-year growth of 25.82 percent, according to data from the Kingdom鈥檚 central bank.
Figures released by the institution showed that in December, sales totaled SR19.37 billion, representing a 42.06 percent increase compared to the same month in the previous year.
These figures include payments for online shopping, in-app purchases, and e-wallet transactions, but exclude transactions using credit cards such as Visa and MasterCard.
Mada, the Kingdom鈥檚 national payment card system, supports both debit and prepaid services within its network. The cards utilize near-field communication technology for contactless payments, enabling secure transactions at both physical retailers and online.
Mohammed Dhedhi, partner in the consumer and retail practice team at Kearney Middle East and Africa, told Arab News: 鈥淭he growing spending power in 海角直播, driven by factors such as dual-income households and higher overall economic strength, is fueling market growth.鈥
He added: 鈥淎dditionally, the proliferation of NFC-capable devices has significantly boosted the penetration of digital payment channels like Mada, further supporting the shift toward a more digital economy.鈥
In addition to the surge in sales, the number of e-commerce transactions also experienced a significant rise, increasing by 28.86 percent year-on-year to nearly 1.13 billion transactions in 2024.
December saw a 30.47 percent annual increase, reaching 105.73 million transactions.
According to Dhedhi: 鈥淭oday, local Mada cards account for over 90 percent of cards issued in the country and over 95 percent of the total transactions made. One of the main reasons for Mada鈥檚 popularity is because of how convenient it is to use.鈥
He added that Mada is widely accepted both in-store and online across 海角直播, providing secure transactions as it is operated by Saudi Payments, a subsidiary of the Saudi Central Bank.
The growing adoption of Mada aligns with the government鈥檚 push toward a cashless society, promoting the transition from cash to digital payments.
Dhedhi explained that the COVID-19 pandemic significantly accelerated e-commerce penetration in 海角直播, driving faster digital adoption across various sectors.
This growth was further supported by increased investments from both regional and global players looking to expand their operations.
He noted that in 2022, noon.com opened a Customer Fulfillment Center in Riyadh to improve delivery speed and meet the growing demand from consumers.
海角直播鈥檚 growing spending power, supported by factors including dual-income households and a robust economy, continues to drive market expansion.
At the same time, the widespread adoption of NFC-enabled devices has propelled the use of digital payment solutions like Mada.
As a result, the Kingdom is witnessing a rapid shift toward a more digital economy, with seamless and secure transactions becoming an integral part of the evolving e-commerce landscape.
The rise in e-commerce activity aligns with 海角直播鈥檚 goal to make digital transactions account for 80 percent of the retail sector by 2030, with 70 percent conducted online by the same year.
According to the International Trade Administration, the Saudi e-commerce market, valued at $5.15 billion in 2023, accounted for 6 percent of the Kingdom鈥檚 $92.6 billion retail market.
Dhedhi said: 鈥淭o improve online shopping experiences, 海角直播鈥檚 Ministry of Commerce has introduced reforms focusing on refunds, delivery options, and payment choices.鈥
He added: 鈥淭hese changes aim to address consumer concerns such as unclear warranties, limited delivery coverage, slow complaint resolutions, and delayed refunds. Retailers are now required to submit performance reports and conduct consumer awareness campaigns.鈥
According to Dhedhi, 海角直播鈥檚 e-commerce market growth will be driven primarily by appliances and electronics, which will account for 23 percent of total growth, with a compound annual growth rate of 8 percent from 2024 to 2028.
The fashion sector is expected to contribute 18 percent, also growing at 8 percent CAGR, while health and beauty will make up 14 percent, expanding at a much faster 16 percent CAGR.
The dominance of electronics and appliances reflects a strong demand for advanced technology and gadgets, particularly among younger, tech-savvy consumers.
In addition, the rising popularity of beauty and home care products aligns with an increasing focus on self-care and wellness across the Kingdom.
Meanwhile, the food and beverage segment is projected to experience the highest growth rate at 25 percent CAGR, although its overall market size remains smaller compared to other leading categories, according to Dhedhi.
鈥淭he rise in food and beverage e-commerce reflects a growing demand for convenience. Quick commerce has been growing rapidly, and while it historically took players much longer to achieve profitability, the current focus on dark stores and improved unit economics is accelerating this process,鈥 Dhedhi said.
He also noted that while this shift has accelerated growth in the sector, it has also intensified competition. This dynamic ultimately benefits market players in 海角直播 by fostering innovation and enhancing service quality.
According to the International Trade Administration, 海角直播鈥檚 digital economy is expanding rapidly, driven by substantial government investments and widespread adoption of emerging technologies.
As of 2023, the Kingdom鈥檚 Information and Communications Technology sector was the largest and fastest-growing in the Middle East and North Africa region, valued at $40.94 billion and contributing 4.1 percent of gross domestic product, the report stated.
The Kingdom ranked second among G20 countries on the UN International Telecommunication Union鈥檚 ICT Development Index in 2023, highlighting its strong digital infrastructure.
Over the past six years, 海角直播 has invested $24.8 billion in this area, leading to a 99 percent internet penetration rate and mobile internet speeds of 215 megabits per second, nearly double the global average.
These advancements place the Kingdom among the top 10 countries globally for mobile internet speed, according to the ITA.
海角直播 was an early adopter of 5G technology, with coverage reaching 77 percent of the country 鈥 significantly above the global average 鈥 and 94 percent in Riyadh, positioning it among the world鈥檚 leading cities for 5G accessibility.
This high-speed internet expansion is fueling growth in e-commerce, telecommunications, and digital services, the ITA added.
The number of e-commerce users is projected to reach 34.5 million by 2025, with penetration rising from 66.7 percent in 2023 to 74.7 percent by 2027, according to the report.
Digital payments are also surging, aligning with Vision 2030鈥檚 goal of a cashless society. Electronic payments in retail transactions surpassed 57 percent in 2021, exceeding the 55 percent target set by the Financial Sector Development Program.
This shift is expected to further accelerate e-commerce growth, attracting more investment in digital financial services.
Dhedhi said: 鈥淢illennials, who constitute around 50 percent of the population, are key drivers of e-commerce growth due to their digital fluency and tech-savviness.鈥
He added: 鈥淓xpats, on the other hand, prioritize the delivery experience more than locals and show a strong preference for international brands or diverse product offerings, contributing to a broader assortment in the offerings.鈥
Dhedhi said quick commerce players are tapping into the demand for fast delivery, affordable subscriptions, and influencer partnerships to target younger consumers.
By offering low delivery costs, they are setting new convenience standards. Chinese e-commerce giants including Shein and Temu have successfully attracted Gen Z and millennials with trendy, affordable products, despite occasional compromises in product quality, he said.
Urbanization and rising female workforce participation are further fueling the shift to online retail, with families increasingly relying on e-commerce for groceries, fashion, and household items.
Dhedhi noted that these demographic shifts are broadening the customer base, diversifying consumer behavior, and fueling the expansion of 海角直播鈥檚 e-commerce sector, which plays a pivotal role in the Kingdom鈥檚 economic transformation.
