E-Commerce Spending in Saudi Arabia Increased by 42 Percent

Saudi Arabia recorded an increase in retail spending in the first quarter of 2026, driven by strong consumer demand, stable inflation, and growth in the non-oil economy. E-commerce spending in the country increased by 42 percent year-on-year.

According to Knight Frank data, consumer spending in the country rose by 6.8 percent compared with the same period last year, reaching 425 billion riyals, or approximately $113.3 billion. This amount included point-of-sale transactions, cash withdrawals, and online shopping.

E-Commerce Spending in Saudi Arabia Rose by 42 Percent

E-commerce spending in Saudi Arabia increased by 42 percent year-on-year in the first quarter of 2026. Growth in online shopping, together with physical stores, supported the country’s overall retail performance. Consumer spending conducted through official payment channels had reached a record level of 1.57 trillion riyals in 2025.

Non-Oil Economy Supported Retail

The country’s economy grew by 3 percent in the first quarter of 2026, while non-oil activities expanded by 2.9 percent. During the same period, inflation remaining at 1.8 percent contributed to maintaining consumer confidence despite regional geopolitical tensions.

Faisal Durrani, Head of Research for the Middle East and North Africa at Knight Frank, stated that consumer spending remained resilient against regional uncertainties. Durrani said that non-oil economic growth, stable inflation, and rising household incomes supported retailers’ confidence.

Shopping Malls Are Transforming into Experience Destinations

It was stated that consumers are increasingly turning to spaces offering family entertainment, education-focused activities, sports, events, and social activities in addition to shopping and food and beverage options. This trend is leading developers to redesign retail spaces in a way that provides more comprehensive customer experiences. (Saudi Arabia)

Under Vision 2030, the aim is to increase the annual number of visitors to 150 million by 2030 and raise tourism’s contribution to gross domestic product to 10 percent. The program is expected to support demand in the retail, hospitality, entertainment, and e-commerce sectors.