Saudi Arabia ranked second out of seven MENA countries tracked by the E-Commerce Maturity Index, and 26th out of 75 countries globally, according to a report by Fitch Solutions’ market research arm BMI. The firm sees domestic e-commerce spending growing at an annual rate of 10.6% over the next four years, to reach USD 24.5 bn by the end of 2029, with its share of total consumer spending rising to 3.6% in 2025, and reaching 4.1% by 2029.

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Online shopping is running hot: BMI sees Saudi households spending a total of USD 17 bn via e-commerce channels this year, marking a projected 9.6% y-o-y growth. That is nearly two times faster than the expected growth in broader household spending (+5.7% y-o-y) over the same period.

The drivers: The score places the Kingdom ahead of its regional peers, largely thanks to its youthful population, urban density, rapid internet penetration and widespread smartphone usage. Almost 30% of the population is between the ages of 20 and 39, which will be a key factor in the market’s digital adoption, BMI said. Additionally, projected improvements in payment systems, internet connectivity, and the proliferation of 4G and 5G networks are expected to boost the Kingdom’s digital infrastructure.

BUT- Some regulatory challenges continue to set the Saudi market below the global average level of industry risks, such as intellectual property issues, complex import and advertising laws. “Although improvements have been forthcoming, it still remains a barrier,” the report notes.

THE METHODOLOGY- BMI’s E-commerce Maturity Index looks at a number of factors within a market, including internet connectivity, smartphone usage, disposable income levels, demographics and regulatory frameworks to determine a country’s readiness and potential for e-commerce growth.

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