93% of Gulf E-Commerce Investments Went to Saudi Arabia
As of 2025, Saudi Arabia attracted approximately 93% of e-commerce investments across the Gulf Cooperation Council countries. This rate stood at 46% in 2021. The new data revealed the growth in e-commerce, retail, logistics, and digital infrastructure investments in the country.
E-Commerce Accounts for 11% of Gulf Retail
According to data shared during the “New Geography of Growth” session held in London in collaboration with the RLC Global Forum and Selfridges, e-commerce penetration in the Gulf retail sector stands at 11%. While e-commerce growth in the region is reported to be above the global average, investments are expanding not only into online retail but also into logistics, fulfillment, and digital infrastructure.
Consumer use of digital channels is also increasing in Saudi Arabia. According to the Saudi Internet Report published by the Communications, Space and Technology Commission, 76.9% of consumers in the country purchase products or services online. A total of 95.3% of online purchases are made through local retailers.
Regional Retail and Luxury Market Is Growing
Panos Linardos, Chairman of the RLC Global Forum, stated that growth opportunities are now distributed more unevenly across markets, sectors, and companies, while investments have become more selective. Linardos said that Gulf countries continue to strengthen their position in the changing global trade environment.
Deborah Aitken, Senior Retail Analyst at Bloomberg Intelligence, said that growth in the region is continuing, but is shifting toward different channels compared with the past. Aitken noted that the recovery in tourism may take longer, while domestic investment and the use of regional capital continue to grow. The Gulf is also strengthening its position in the luxury retail sector through strong domestic demand and increasing openness to global markets.
Artificial Intelligence Enters the Online Shopping Process
The region’s digital transformation is also being reflected in AI-powered shopping behavior. According to a study conducted by Tabby with more than 20,000 consumers in Saudi Arabia and the UAE, 43% of customers use artificial intelligence in their purchasing decisions. Among consumers aged 18–29, this rate rises to 51.8%.
As investments in e-commerce, digital payments, artificial intelligence, and logistics continue to expand, digitalization across the Gulf retail ecosystem is progressing, while Saudi Arabia continues to attract the largest share of e-commerce investments in the region.