DIGITAL

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TRENDSE-commerceinSaudiArabiaCHAPTER

01OverviewShareofonlineshoppersin56countries&territoriesworldwide,asofFebruary2024Onlineshoppersinselectedcountriesworldwide2024Shareofrespondents40%

50%0%10%20%30%60%70%80%90%100%IndiaIndonesiaVietnam98%98%98%98%UnitedKingdomChinaUnitedArabEmiratesNetherlandsSwitzerlandSpain97%97%96%96%96%96%96%96%96%SouthKoreaTurkeySaudiArabiaItaly3/statistics/1452518/online-shoppers-in-selected-countries-worldwideComparingtheonlineshoppersinselectedcountriesworldwide,thehighestsharecanbefoundinIndiawith98percentofconsumersfallingintothiscategory.Indonesiafollowsinthesecondplace,whileMoroccoendsupatthebottomoftheranking.ReadmoreNote(s):Worldwide;JanuarytoDecember2023;449to10,046respondentspercountry;18-64yearsSource(s):ConsumerInsightsValueofthee-commercemarketintheMiddleEastfrom2014until2025,bycountry(inbillionU.S.dollars)Valueofe-commercemarketMENA2014-2025,bycountrySaudiArabiaUAEOther1210810.59.18.27.165.554.54.3432.92.42.32.11.81.821.41.31.1020142015201620172020*2025*4Description:Thevalueofe-commerceintheMiddleEastin2020amountedaround17billionU.S.dollars,ofwhich5.5billionU.S.dollarswasintheSaudiArabia,and4.5billionU.S.dollarswasintheUnitedArabEmiratesmarket.Thevalueofe-commerceintheMiddleEastwasexpectedtoexceed27billionU.S.dollarsby2025.ReadmoreNote(s):MENA;2014to2025;*ForecastsReadmoreSource(s):LogisticsIQE-commerceshareoftotalretailintheMiddleEastandNorthAfricanregionin2022,bycountryorterritoryE-commerceshareoftotalretailMENA2022,bycountryorterritoryE-commerceshare8%0%2%4%6%10%12%14%16%18%UnitedArabEmiratesIsrael16%8%SaudiArabiaEgypt7%3%Morocco2%5Description:TheUnitedArabEmiratesappearedtobethemostenthusiasticMiddleEastandNorthAfricancountryintermsofe-commerceadoption,with16percentofitstotalretailsalesowingtoe-commercein2022.Contrastingly,e-commerceaccountedforjustthreepercentofthetotalretailsalesinEgyptduringthesameyear.ReadmoreNote(s):MENA;2022Source(s):PPROLeadinge-commerceplatformsintheMiddleEastinMay2022,bymonthlyvisits(inmillions)Leadinge-commerceplatformsMEAMay2022,bymonthlyvisitsAveragemonthlyvisitsinmillions020406080100120101.16866.43835.13432.5.tr28.321.620.16Description:InMay2022,theTurkey-basedplatformTrendyolwastheleadinge-commercewebsiteintheMiddleEastregion,withover101millionaveragemonthlyvisits.Hepsiburada,alsoTurkeybasedplatform,wasthesecondmostvisitedwitharound68averagemonthlyvisits.ReadmoreNote(s):MENA;May2022Source(s):SemrushCHAPTER

02SaudiArabiamarketRetailsalesinSaudiArabiain2021,withforecaststo2026(inbillionU.S.dollars)RetailsalesSaudiArabia2021-2026200180160140176.5155.6137.4126.11201008060402002021*2022**2024**2026**8Description:In2021,country-wideretailsalesinSaudiArabiawereestimatedat126.1billionU.S.dollars.In2026,thevolumeofretailsaleswasforecastedtoincreasetoapproximately176.5billionU.S.dollars.

ReadmoreNote(s):SaudiArabia,MENA;2021to2026;*Estimate.**Forecast.ReadmoreSource(s):AlpenCapital;IMF;Kearney;WTTCForecastede-commercemarketsizepostCOVID-19inSaudiArabiafrom2020to2025(inbillionU.S.dollars)Forecastede-commercemarketsizepostCOVID-19SaudiArabia2020-202525202119161510514131102020202120222023202420259Description:Themarketsizeofthee-commerceindustryinSaudiArabiawasexpectedtogrowfrom11billionU.S.dollarsin2020,toreach21billionU.S.dollarsby2025aftertheadjustmentsfortheeffectoftheCOVID-19pandemicone-commerce.From2020to2022,therewasanexpectedadditionalsixpercentannualmarketgrowthduetoCOVID-19intheGulfCooperationCouncil(GCC)region.ReadmoreNote(s):SaudiArabia,MENA;2020to2025Source(s):C;KearneyNumberofonlineshoppersinSaudiArabiafrom2016to2022*(inmillions)NumberofonlineshoppersSaudiArabia2016to202225201519.317.71614.412.911.610.510502016201720182019*2020*2021*2022*10Description:ThisstatisticpresentsthenumberofonlineshoppersinSaudiArabiafrom2016to2018,withestimatesfrom2019to2022.In2018,thenumberofonlineshoppersamountedto12.9million,comparedto11.6millioninthepreviousyear.Itwasestimatedthatthenumberofonlineshopperswouldexperienceavastincreaseby2022,reaching19.3million.ReadmoreNote(s):SaudiArabia,MENA;2016to2018;*Forecast.ReadmoreSource(s):emarketingElementsencouragingcrossbordercommerceinSaudiArabiain2023ElementsencouragingcrossbordercommerceSaudiArabia202380%72%70%60%50%40%30%20%10%0%47%35%31%cheaperpriceswiderarrangementconvenientshoppingexperiencebrandvariety11Description:In2023,72percentofsurveyedconsumersinSaudiArabiabelievedcheaperpriceswereakeyfactorencouragingcrossbordercommerceinthecountry.Likewise,47percentofrespondentsbelievedhavingawidervarietyofproductswasasignificantfactorinencouragingcrossbordertrade.ReadmoreNote(s):SaudiArabia,MENA;2023Source(s):CElementsdiscouragingcrossbordercommerceinSaudiArabiain2023ElementsdiscouragingcrossbordercommerceSaudiArabia202370%59%60%50%40%30%20%10%0%55%51%44%40%33%highshippingcostslongerdeliverypotentialscamsqualityproblemsdifficultreturnscustomsduties12Description:In2023,59percentofsurveyedconsumersinSaudiArabiabelievedcheaperpriceswereakeyfactordiscouragingcrossbordercommerceinthecountry.Longerdeliverytimes,andpotentialscams,werealsoconsideredamajorconcernhinderingcrossbordercommerceamongstroughlyhalfofrespondents.ReadmoreNote(s):SaudiArabia,MENA;2023Source(s):CCHAPTER

03OnlinepaymentsPenetrationrateofcreditcardsinSaudiArabiafrom2014to2029PenetrationrateofcreditcardsinSaudiArabia2014-20293529.0528.833025201510528.5428.1627.6727.0526.2925.4225.4322.7420.3418.1916.2714.5112.93201511.53201402016201720182019202020212022202320242025202620272028202914Description:ThecreditcardpenetrationinSaudiArabiawasforecasttocontinuouslyincreasebetween2024and2029byintotaltwopercentagepoints.Afterthefifteenthconsecutiveincreasingyear,thecreditcardpenetrationisestimatedtoreach29.05percentandthereforeanewpeakin2029.Notably,thecreditcardpenetrationofwascontinuouslyincreasingoverthepastyears.ReadmoreNote(s):SaudiArabia;2014to2029;allvaluesareestimatesSource(s):PenetrationrateofonlinebankinginSaudiArabiafrom2014to2029PenetrationrateofonlinebankinginSaudiArabia2014-20298071.1968.1670605040302010064.961.5958.2554.8551.4247.9544.4340.8537.2133.5129.77201726.04201622.418.852014201520182019202020212022202320242025202620272028202915Description:TheonlinebankingpenetrationrateinSaudiArabiawasforecasttocontinuouslyincreasebetween2024and2029byintotal16.3percentagepoints.Afterthefifteenthconsecutiveincreasingyear,theonlinebankingpenetrationisestimatedtoreach71.19percentandthereforeanewpeakin2029.Notably,theonlinebankingpenetrationrateofwascontinuouslyincreasingoverthepastyears.ReadmoreNote(s):SaudiArabia;2014to2029;allvaluesareestimatesSource(s):Marketshareofcreditcardsintotalvalueofe-commerceandpointofsale(POS)paymentsintheMiddleEastandAfrica(MEA)in2022,bycountryCreditcardmarketshareinPOSande-commercein4countriesinMEAE-commercePOS45%40%35%30%25%20%15%10%5%0%MiddleEastandAfrica(MEA)UnitedArabEmiratesSaudiArabiaSouthAfricaNigeria16Description:Physicalcreditcardswereusedsignificantlymorefore-commercethanin-storepaymentsinselectedcountriesinAfricaandtheMiddleEastin2022.Thispopularityissomewhatsurprisingwhencomparedtotherelativelylowpenetrationratesforcreditcardswithincountriesintheregion.ReligiousconcernsinitiallymadeitdifficultforcreditcardstofindacceptanceinAfricaandtheMiddleEast.Bankstriedtochangethis,bothbycreatingShariah-compliantcardsaswellasofferingrewards[...]ReadmoreNote(s):Argentina,Brazil,Chile,Colombia,Peru;2022;in2022,thesourcestateditmergedthecategoriesof"creditcards"togetherwith"charge/deferreddebitcards".Source(s):GlobalData;IMF;McKinsey&Company;WorldBank;WorldpayMarketshareofpaymentcardbrands-Visa,Mastercard,AmericanExpress,orin-marketlocalcardschemes-inSaudiArabiafrom2019to2022BiggestinternationalanddomesticpaymentcardschemesinSaudiArabia2019-2022mada(SaudiPaymentsNetwork)VisaMastercard120%100%80%60%40%20%0%201920202021202217Description:Visa'smarketshareinSaudiArabiadeclinedby25percentagepointsbetween2020and2021,notmakingitthecountry'sbiggestpaymentcardbrand.ThebiggestbrandismadafromtheSaudiPaymentsNetwork.ThislocalATMandPOSnetworkusedtobeknownasSPANandisdevelopeddomesticallytopromotedigitalpayments.Consequently,themarketshareofcashmoneyinSaudiArabiaisdeclining-althoughstilldominantatPOStransactionsasof2020.ReadmoreNote(s):SaudiArabia;2019to2021;Basedontotaltransactionvalue,eitheronlineorofflineSource(s):GlobalData;PPRO;WorldpayNumberandshareofmerchantswhousePayPalasapaymentsolutionontheirwebsiteacrossvariouscountriesandterritoriesintheworldasofFebruary28,2024MerchantswhoacceptPayPalforonlinepaymentsin165countriesworldwide2024Number

ofwebsitesShare

ofall

websites

that

offer

atleast

one

payment

acceptance

orpayment

processor

technology,

excluding

crypto

and

FXUnitedStatesUnitedKingdomGermanyAustraliaCanada1055029306841262806222815126447110614110446985669.29%22.98%28.06%22.44%24.66%26.72%14.69%23.98%23.74%29.36%18.04%23.22%ItalyBrazilFranceNetherlandsIndia7559871902Russia65769Spain6164018Description:ThenumberofGermanwebsitesthatofferedPayPalasapaymentmethodwasrelativelyhigherthanthosefromothercountriesupuntil2023.Thisaccordingtoestimatesbasedonwebsitetrackingandthetechnologiesusedwithinthem,focusingsolelyonPaymentAcceptanceandPaymentProcessing.Notethatthepercentages,especially,areestimatesduetocategorization.Nevertheless,itprovidesaninsightinthehighuseofPayPalintheUnitedStatesbutalsotheimportanceofthe[...]

ReadmoreNote(s):Worldwide;February28,2024;Websiteswithadomainfromsaidcountry;ThenumbershavebeengatheredandcalculatedbySource(s):BuiltWith;seethe"Details"tabformoreinformation.CHAPTER

04E-commerceplatformsCriteriaforchoosinge-commerceplatforminSaudiArabiain2021Reasonsforchoosinge-commerceplatformSaudiArabia2021Shareofrespondents0%10%20%30%40%50%60%FreeshippingVariouspaymentsmethodsDiscounts52.7%39.1%37.1%35.6%SamedaydeliveryBrandloyalty28.6%FlexiblereturnpoliciesLikesandcommentsCustomerreviews28%25.7%22.7%20Description:Freeshippingwasthemostimportantcriterionforchoosinge-commerceplatformamongconsumersinSaudiArabiain2021,withashareofaround52percent.Customerreviewswastheleastimportantcriterionforchoosinge-commerceplatform,withashareofaround23percent.ReadmoreNote(s):2022Source(s):Criteriaforchoosinge-commerceplatformamongSaudisinSaudiArabia2021Criteriaforchoosinge-commerceplatformSaudiArabia2021Shareofrespondents20%

30%0%10%40%50%60%70%80%PeoplewithafinancialinstitutionaccountPeoplewithacouponcard71.7%66.8%Peoplewithacreditcard16.3%21Description:Around72percentofSaudirespondentshadanaccountatafinancialinstitutioninSaudiArabiain2021.Thetotale-commercepurchasesthatyearreachedaround130.8billionSaudiRiyals.ReadmoreNote(s):SaudiArabia;2022Source(s):NumberofonlinestoresandplatformsinSaudiArabiafrom2018to2021NumberofonlinestoresandplatformsSaudiArabia2018-202140,00036,44735,00028,67630,00025,00020,00015,00010,0005,000025,10521,534201820192020202122Description:In2021,therewerearound36thousandonlinestoresandplatformsinSaudiArabia,upfromaround29thousandinthepreviousyear.ReadmoreNote(s):SaudiArabia;2022Source(s):MostvisitedonlineshoppingplatforminSaudiArabiain2021(inmillions)MostvisitedonlineshoppingplatformSaudiArabia2021Visitsinmillions0.00.51.01.52.02.53.0.sanoon,com2.52.21.71.71.223Description:Witharound2.5millionvisits,H.sawasthemostvisitedshoppingplatforminSaudiArabiain2021.Acameinsecondwithapproximately2.2millionvisitors.ReadmoreNote(s):2022Source(s):CHAPTER

05ConsumerbehaviorShareofonlineshoppersaffectedbyrisinggrocerypricesasofJune2022,bycountryOnlineshoppersaffectedbyrisinggrocerypricesasofJune2022,bycountryShareofrespondents30%

40%0%10%20%50%60%70%80%BrazilSouthKoreaJapanSouthAfricaUnitedStatesEgypt67%64%62%62%60%60%60%MalaysiaCanada59%Qatar59%59%VietnamGermanySpain58%57%57%Singapore25Description:AccordingtoaJune2022globalsurvey,moste-shoppersreportedrisingpricesforgroceriesbeinganissuewhileonlineshopping.Nearly70percentofshoppersinBrazilstatedthatincreasedfoodpricesinfluencedtheirshoppingbehavior,whileSouthKoreahadthesecond-highestnumberofrespondentsreportingtheissue,at64percent.ReadmoreNote(s):Worldwide;June2022;9,069respondents;haveshoppedonlineatleastonceinthepreviousyearSource(s):PwCShareofconsumersswitchingtoonlineshoppingduetosupplychainissuesasofJune2022,bycountrySupplychainissuesaffectconsumers'onlineshoppingJune2022,bycountryShareofrespondents30%0%10%20%40%50%60%70%IndonesiaBrazil60%56%MalaysiaIndia54%52%ThailandVietnamSouthKoreaChina50%50%47%45%45%MexicoHongKongEgypt43%40%PhilippinesSaudiArabia37%37%26Description:AccordingtoasurveyconductedinJune2022,37percentofglobalconsumersreportedswitchingtoonlineshoppingduetosupplychainissues.InIndonesia,thisissuewasparticularlyrelevant,assixoftenonlineshoppersreportedchangingtheirshoppinghabitsduetosupplychainproblems.ReadmoreNote(s):Worldwide;June2022;9,069respondents;haveshoppedonlineatleastonceinthepreviousyearSource(s):PwCOnlinepurchasedriversinSaudiArabiaasofthe3rdquarterof2023OnlinepurchasedriversSaudiArabiaQ32023Shareofrespondents0%5%10%15%20%25%30%35%40%45%50%FreedeliveryLoyalitypointsAbilitytopaycashondeliveryNext-daydelivery44.5%38%36.5%35.1%34.2%33.4%"Clickandcollect"CouponsanddiscountsEasyreturnspolicy31.1%Fast,easyonlinecheckout"Likes"org