Saudi Arabia’s retail landscape is undergoing a powerful transformation. Valued at around USD 282.2 billion in 2024, the sector is now driven by technology, digital platforms, and changing consumer behavior. The next phase of retail growth is not just happening in major cities like Riyadh or Jeddah—it’s spreading to smaller towns across the Kingdom.
The surge of digital connectivity, with 48.1 million mobile connections recorded in early 2025, has made Saudi Arabia one of the most connected markets in the region. This connectivity has fueled a shift toward AI-powered retail, e-commerce, and social commerce, reshaping how Saudis discover and buy products.
E-Commerce Guilds and SaaS Platforms Powering Retail Growth
In recent years, Saudi Retail Digital Trends have centered around e-commerce expansion. The country saw a 10% increase in e-commerce business registrations in late 2024, reaching nearly 41,000 registered businesses. The growth continued into Q1 2025, with a 6% year-on-year rise in e-commerce permits. This steady momentum shows how entrepreneurs are embracing online retail as both a business model and a growth strategy.
Behind this expansion is a new wave of e-commerce guilds and SaaS (Software-as-a-Service) tools. These platforms make it easier for small and medium enterprises (SMEs) to digitize operations, manage logistics, and accept online payments. For retailers in smaller Saudi towns, these tools are breaking down long-standing barriers to scale.
Many local shops are now able to reach customers nationwide—something that was once limited to large retail chains. Through user-friendly SaaS tools, small retailers can manage inventory, track deliveries, and launch online stores in just a few clicks. These platforms are not just supporting sales—they’re transforming entire supply chains and creating a more inclusive digital economy.
Source: IMARC Group
The Saudi e-commerce market, valued at USD 222.9 billion in 2024, is projected to grow at a CAGR of 12.8% and reach USD 708.7 billion by 2033. This remarkable trajectory reflects how technology and consumer behavior are combining to create sustained growth opportunities.
Social Commerce and the Power of Connectivity
Digital transformation is also changing the way consumers engage with brands. Around 73% of Saudi consumers made purchases through social media platforms in the past year. This trend marks the rise of social commerce, where product discovery, reviews, and payments all happen within community-driven platforms.
High internet penetration—over 95% across the country—has made this shift possible. As consumers become more comfortable buying through digital channels, social platforms are evolving into full-fledged marketplaces. Retailers who understand these dynamics are finding new ways to connect with audiences through personalization, influencer marketing, and AI-powered recommendations.
These Saudi Retail Digital Trends are not just about convenience—they’re reshaping how value is created in the retail chain. Data analytics and AI tools now help brands forecast demand, manage stock levels, and create personalized promotions, all while improving customer experience.
From Urban to National Reach
What stands out most in Saudi Arabia’s retail evolution is inclusivity. The combination of SaaS tools, e-commerce platforms, and nationwide connectivity has allowed small-town retailers to compete alongside established urban brands.
As digital platforms expand, the Kingdom’s retail economy is becoming more decentralized and innovative. With ongoing growth in business registrations and strong e-commerce projections, Saudi Arabia is positioned to lead the region’s retail transformation—powered by technology, data, and a connected population.
Read also: Saudi E-commerce Market Accelerates Toward a Digital Future
