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Saudi Arabia is one of the largest digital markets in the Middle East, with e-commerce experiencing tremendous growth in recent decades. Online shopping was not popular at first, but with technological development and government support, this sector has become an essential part of the Saudi economy. How did the story begin? And how did e-commerce reach this level of success?
1- The beginning: The emergence of e-commerce in Saudi Arabia
In the late 1990s and the beginning of the new millennium, e-commerce was a new concept in the Kingdom, and there were no widely specialized local platforms. Online shopping was limited to purchasing from global sites such as eBay and Amazon, as there was not enough local support for digital payments or fast shipping services within the Kingdom.
2- The first decade of the millennium: The emergence of local e-stores
With the advancement of the Internet and the development of infrastructure, some Saudi digital stores began to appear, but they were limited in services and products. The most notable developments during this period:
• The emergence of advertising platforms such as "Haraj", which allowed individuals to display and sell products locally.
• The launch of some simple local stores that focused on technical products and electronics.
• The beginning of the spread of electronic payment methods, but they were not widely spread, and reliance on cash on delivery was the most common option.
3- 2010 – 2015: The strong launch of e-commerce
This period witnessed a qualitative shift, as e-commerce began to flourish thanks to several factors:
• The development of electronic payment services and the emergence of local payment gateways that support digital payments.
• The spread of smartphones and applications, which increased the ease of access to e-stores.
• The emergence of strong Saudi stores such as "Jarir" and "Extra", which began to provide an integrated digital shopping experience.
• The growth of shipping and delivery services, which made the online shopping process smoother and more reliable.
4- 2016 – 2020: Huge prosperity and strong government support
With the launch of Saudi Vision 2030, digital transformation has become one of the country's primary goals, which contributed to supporting e-commerce in several ways:
• Launching the "Maroof" platform, which helped organize e-commerce and enhance consumer confidence.
• Supporting digital entrepreneurship by providing financing for emerging e-store projects.
• Issuing new laws to protect consumers and ensure the quality of online services.
• The entry of major platforms into the Saudi market, such as Amazon Saudi Arabia and Noon, which has enhanced competition and raised quality standards.
5- 2020 - So far: Growth accelerates with global transformations
The Corona pandemic came as a major turning point in e-commerce, as the Kingdom witnessed an unprecedented leap in the volume of online orders. During this period:
• E-commerce has become the primary choice for shopping after restrictions were imposed on traditional stores.
• The number of local e-stores has doubled in various fields, from fashion to food products.
• Electronic payment systems have spread widely and digital payment has become the basis for commercial transactions.
• Shipping and delivery services have improved significantly to meet the growing demand for online shopping.
6- The future of e-commerce in Saudi Arabia
With continued government support and technological development, e-commerce is expected to continue to grow in the coming years. The most prominent future trends include:
• The use of artificial intelligence technologies in the online shopping experience.
• Increasing reliance on digital payment solutions such as "Mada" and "Apple Pay".
• Expanding Saudi stores to global markets and increasing e-exports.
• Supporting startups and small businesses to facilitate their entry into the digital market.
From its humble beginnings to its rise to the top of the region’s digital markets, e-commerce in Saudi Arabia has proven to be a promising sector with tremendous opportunities for entrepreneurs and consumers alike. With continued innovation and development, this sector will remain a major driver of economic growth in the Kingdom.
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