Saudi Arabia - WORLDEF

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.

Saudi Arabia’s E-Commerce Market Reaches $10 Billion in July Sales

E-commerce sales carried out via Mada cards in Saudi Arabia increased by 11.8 percent on a monthly basis in July 2026, reaching 37.6 billion Saudi riyals ($10 billion). Sales, which stood at 33.6 billion riyals in June, recorded 26 percent growth compared with the same period last year.

E-Commerce via Mada Grew in Saudi Arabia

The data was included in the monthly statistical bulletin of the Saudi Central Bank (SAMA). In the second quarter, e-commerce sales made with Mada cards increased by 3.1 percent from 98.3 billion riyals in the first quarter to 101.4 billion riyals. Compared with the volume of 76.6 billion riyals in the second quarter of last year, annual growth stood at 32.3 percent. Saudi Arabia’s official statistics also showed that the e-commerce sales index increased by 9.8 percent year-on-year in the second quarter.

POS Sales in Physical Retail Also Increased

In July, the total value of point-of-sale (POS) transactions in the retail sector increased by 9.4 percent month-on-month, rising from 54.6 billion riyals to 59.7 billion riyals. Of this amount, 34 billion riyals was transacted via mobile phones, while 25.7 billion riyals was carried out through cards. POS sales increased by 6.8 percent year-on-year.

In the second quarter, however, POS sales declined by 4.8 percent compared with the previous quarter, falling to 170.1 billion riyals. According to data from Saudi Arabia’s General Authority for Statistics, the e-commerce sales index for retail trade increased by 13.4 percent year-on-year during the same period, while the index for wholesale trade rose by 6.5 percent.

Commercial Registrations in the Artificial Intelligence Ecosystem Increased by 240 Percent

In parallel with the growth in e-commerce and digital retail, commercial activity in the field of artificial intelligence also expanded. According to first-quarter 2026 data from Saudi Arabia’s Ministry of Commerce, the number of commercial registrations in the artificial intelligence sector increased by 240 percent over the past five years, exceeding 19,000. During the same period, the total number of active commercial registrations in the country surpassed 1.89 million, while more than 71,000 new commercial registrations were created in the first quarter.

SAMA’s data also shows an increase in the use of electronic payment channels. In the first quarter of 2026, the value of e-commerce transactions carried out with Mada cards in Saudi Arabia increased by 41.9 percent year-on-year, while growth in POS transactions was recorded at 4.4 percent.

Saudi Mada E-Commerce Grows 72%

MENA Startups Raise $172.6M in July as Saudi Arabia Reclaims Funding Lead

Saudi Arabia returned to the top of MENA’s startup funding rankings in July, while e-commerce emerged as the region’s leading funded sector. However, the overall funding environment remained cautious, with debt accounting for more than half of total capital raised.

Startups across the Middle East and North Africa (MENA) raised $172.6 million across 45 funding deals in July 2026, according to the latest funding report from Wamda. The figure represents a 16% increase from June, but remains 78% below July 2025, highlighting the continued caution among investors.

The increase was also driven largely by debt financing. Debt accounted for 56% of total startup funding in July, compared with 11.5% in June and only 2% in July 2025. This suggests that while capital availability improved from the previous month, equity investment has yet to see a significant recovery.

Saudi Arabia Reclaims the Funding Lead

Saudi Arabia returned to the top of the regional startup funding rankings after not leading during the first half of 2026.

Startups in the Kingdom raised $106.6 million across 16 transactions, representing nearly 62% of all MENA startup funding in July. The UAE recorded the same number of deals but attracted $46.6 million, placing it second by total funding.

Syria ranked third with $10.16 million, while Egypt recorded $7.25 million across eight deals. Morocco and Qatar followed with smaller funding volumes.

Saudi Arabia and the UAE together accounted for almost 89% of all capital raised across MENA during the month, underlining the continued concentration of startup investment within the region’s leading ecosystems.

E-Commerce Takes the Largest Share

E-commerce was the leading sector by funding in July, attracting 55% of total investment. However, Wamda noted that the result was driven by a limited number of sizeable transactions rather than broad-based funding activity across the sector.

Govtech ranked second, supported by a $15 million funding round for Whiteshield, while super apps ranked third after two startups in Syria and Morocco collectively raised $12 million.

Fintech remained the most active sector by deal count, recording nine transactions worth a combined $10.9 million. Proptech followed with eight deals totaling $11.9 million.

The figures highlight an interesting contrast: fintech continues to generate significant investor activity, while e-commerce is currently attracting the largest amounts of capital through fewer, larger transactions.

Early-Stage Startups Continue to Attract Capital

July also showed continued investor interest in early-stage companies.

A total of 33 early-stage startups raised $49 million, while no mega deals or late-stage funding rounds were announced during the month.

The absence of large late-stage transactions contributed to the relatively modest overall funding total. At the same time, continued activity at the early stage indicates that investors remain willing to back new companies, although with smaller capital commitments.

B2B Models Dominate Funding

Business-focused startups captured the majority of investment in July.

B2B startups raised $136 million across 33 transactions, representing nearly 79% of all capital deployed during the month. Consumer-focused startups raised $13.3 million across five deals, while startups serving both businesses and consumers attracted $23.3 million through seven transactions.

The strong performance of B2B companies reflects investors’ continued preference for business models with clearer revenue visibility and more predictable customer economics amid an uncertain funding environment.

Funding Gap for Female Founders Persists

The funding data also highlighted the persistent gender gap within the MENA startup ecosystem.

Startups founded solely by women raised only $1.7 million across four transactions, representing less than 1% of total funding in July. Male-founded startups received 97% of all capital, while mixed-gender founding teams raised approximately $3 million.

The figures indicate that greater participation by female founders has yet to translate into a proportional share of venture capital across the region.

A Cautious Start to the Second Half of 2026

July’s funding figures point to a modest improvement in MENA’s startup investment environment, but they do not yet signal a broad recovery.

Funding increased from June, Saudi Arabia reclaimed its regional leadership, and e-commerce emerged as the largest funded sector. Yet the heavy reliance on debt, the absence of mega and late-stage rounds, and the concentration of capital in Saudi Arabia and the UAE show that investors remain selective.

As the second half of 2026 progresses, the return of larger equity rounds and a wider distribution of funding across countries, sectors and founder profiles will be key indicators of whether MENA’s startup ecosystem is moving toward a stronger recovery.

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Saudi Arabia’s Q1 Consumer Spending Growth Boosts Retail Real Estate Demand

Saudi Arabia’s retail sector continued to show strong momentum in the first quarter of 2026, with rising consumer spending supporting demand for retail real estate across the Kingdom.

Consumer spending reached SR425 billion ($113.3 billion) in Q1 2026, representing a 6.8% year-on-year increase, according to consultancy Knight Frank. The growth highlights the continued strength of Saudi Arabia’s consumer economy and its growing impact on the country’s retail property market.

Consumer Spending Strengthens Retail Demand

The increase in consumer spending is providing a strong foundation for retailers and landlords as Saudi Arabia continues to expand its modern retail infrastructure.

Higher household expenditure is contributing to demand for shopping centres, retail destinations and other commercial spaces, particularly as consumer activity remains an important driver of the Kingdom’s broader real estate market.

The trend also reflects the ongoing transformation of Saudi Arabia’s consumer landscape, where changing lifestyles, population growth and expanding retail offerings are creating new opportunities for brands and property developers.

Retail Real Estate Gains Momentum

The relationship between consumer spending and retail property is becoming increasingly important as Saudi Arabia develops large-scale mixed-use and commercial destinations.

Strong spending levels can encourage retailers to expand their physical presence, while developers benefit from greater demand for high-quality retail locations. This creates a cycle in which stronger consumer activity supports retail expansion and new retail destinations, in turn, provide additional opportunities for brands.

Saudi Arabia’s retail market is also being shaped by the Kingdom’s wider economic diversification strategy, which places greater emphasis on tourism, entertainment, hospitality and consumer-focused industries.

A Positive Signal for the Saudi Retail Market

The Q1 figures provide a positive signal for retailers, investors and real estate developers operating in Saudi Arabia.

With consumer spending rising by 6.8% year-on-year to SR425 billion, the Kingdom continues to demonstrate significant retail market potential. As new commercial and mixed-use developments progress, sustained consumer demand could remain a key factor supporting the expansion of Saudi Arabia’s retail real estate sector.

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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.

Saudi Arabia Leads as MENA Startups Raise $96.1 Million in Two Weeks

MENA Startups Raise $173M in July 2026 as Saudi Arabia Reclaims Funding Leadership

Middle East and North Africa (MENA) startups raised $172.6 million across 45 funding deals in July 2026, marking a 16% increase from June, according to Wamda’s latest funding report. However, overall investment remained 78% lower than July 2025, highlighting continued caution among investors. A significant portion of the month’s capital came through debt financing, which represented 56% of total funding, compared with just 11.5% a month earlier.

Saudi Arabia Leads MENA Startup Funding with $106.6 Million

Saudi Arabia returned to the top position among regional startup ecosystems after leading startups in the Kingdom secured $106.6 million across 16 deals, accounting for nearly 62% of all capital raised during the month. The UAE followed with the same number of transactions but attracted $46.6 million in funding. Syria ranked third with $10.16 million, while Egypt raised $7.25 million across eight deals. Morocco and Qatar completed the top markets with comparatively smaller investments. Together, Saudi Arabia and the UAE captured nearly 89% of all funding raised in the region during July.

The e-commerce sector emerged as the largest funding recipient, attracting 55% of total investment, driven by several large transactions. Govtech ranked second following a $15 million funding round for Whiteshield, while super apps secured third place. Despite not leading by funding value, fintech remained the most active sector by deal count, recording nine transactions worth $10.9 million. Proptech followed with eight deals totaling $11.9 million.

Early-Stage and B2B Startups Continue to Attract Investors

Early-stage startups continued to dominate investment activity. Thirty-three early-stage companies raised $49 million, while no mega deals or late-stage funding rounds were announced during the month. The report also showed that B2B startups attracted $136 million across 33 deals, representing nearly 79% of all capital deployed, reflecting investors’ continued preference for business-focused technology companies.

Gender funding disparities remained evident. Startups founded solely by women secured just $1.7 million across four deals, representing less than 1% of total funding. Male-founded startups received 97% of all capital, while mixed-gender founding teams raised approximately $3 million. According to the report, July’s results indicate a modest recovery in overall funding activity, but the regional startup ecosystem continues to rely heavily on debt financing and a limited number of large transactions as investors remain cautious.

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DP World Opens First Multi-Client Logistics Warehouse in Saudi Arabia to Strengthen Supply Chain Network

DP World has expanded its logistics footprint in Saudi Arabia with the launch of its first multi-client third-party logistics (3PL) warehouse in Riyadh, reinforcing its commitment to supporting the Kingdom’s rapidly growing supply chain sector and Vision 2030 objectives.

The newly inaugurated facility is located in Riyadh’s Al Mashael Logistics Hub and is designed to provide flexible warehousing and distribution services for businesses across multiple industries. The investment reflects the increasing demand for modern logistics infrastructure as Saudi Arabia positions itself as a regional trade and logistics hub.

A Strategic Logistics Hub for Saudi Arabia

The new warehouse spans 15,250 square metres and offers capacity for more than 17,000 pallet positions. It provides integrated logistics services, including storage, inventory management, import consolidation, order fulfilment, palletisation, and nationwide distribution.

Operating as a non-bonded warehouse, the facility enables customs-cleared goods to move efficiently into Saudi Arabia’s domestic market, allowing businesses to reduce delivery times, improve inventory availability, and simplify supply chain operations.

Its strategic location within Riyadh’s Al Mashael Logistics Hub offers convenient access to major transport corridors connecting businesses across the Kingdom and neighbouring Gulf markets.

Supporting Vision 2030 and Growing Demand

Saudi Arabia continues to invest heavily in logistics infrastructure as part of its Vision 2030 economic diversification strategy. Rising demand from sectors such as retail, e-commerce, manufacturing, automotive, consumer goods, healthcare, and technology has accelerated the need for advanced warehousing and fulfilment capabilities.

DP World’s latest investment is designed to meet these evolving market requirements by providing scalable logistics solutions for companies seeking efficient nationwide distribution and supply chain management.

Mohammad Alshaikh, CEO of DP World Saudi Arabia, said the facility will enable customers to benefit from greater flexibility, operational efficiency, and reliable logistics services while supporting Saudi Arabia’s ambitions to become a leading global logistics centre.

Raveen Guliani, Chief Operating Officer of Logistics at DP World GCC, described Saudi Arabia as one of the company’s fastest-growing logistics markets, noting that the new warehouse strengthens DP World’s integrated supply chain offering across the Kingdom.

Expanding DP World’s Saudi Logistics Network

The Riyadh warehouse complements DP World’s existing logistics operations in Dammam and forms part of the company’s broader investment strategy in Saudi Arabia.

Among its largest ongoing projects is the $250 million Jeddah Logistics Park, a 415,000-square-metre integrated logistics facility located near Jeddah Islamic Port. DP World is also investing in the expansion and modernization of the Jeddah South Container Terminal, increasing capacity and improving cargo handling efficiency.

Together, these investments create an integrated logistics ecosystem connecting ports, warehouses, inland transport, and distribution centres across Saudi Arabia.

Strengthening Regional Supply Chains

The launch of the multi-client warehouse highlights DP World’s strategy of providing end-to-end logistics solutions that support businesses operating in one of the Middle East’s fastest-growing economies.

As Saudi Arabia continues to attract manufacturing, retail, and e-commerce investments, modern logistics infrastructure will play an increasingly important role in improving supply chain resilience, reducing operational costs, and enhancing trade connectivity.

With its newest facility in Riyadh, DP World further strengthens its position as a key logistics partner supporting the Kingdom’s transformation into a global logistics and trade hub.

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Saudi Arabia Leads as MENA Startups Raise $96.1 Million in Two Weeks

Fintech dominates regional funding while Saudi Arabia and the UAE attract the largest share of venture capital

Middle East and North Africa (MENA) startups secured $96.1 million across 22 funding rounds during the second half of July 2026, highlighting continued investor confidence despite a more selective venture capital environment. Saudi Arabia emerged as the leading destination for capital, driven by strong fintech investment and ongoing government-backed innovation initiatives.

The funding activity reinforces Saudi Arabia’s position as one of the region’s fastest-growing startup ecosystems, with fintech continuing to dominate investor interest. The Kingdom has benefited from regulatory reforms, digital transformation initiatives under Vision 2030, and increased participation from regional venture capital firms.

Saudi fintech remains the investment hotspot

Financial technology companies accounted for the largest share of funding during the reporting period, reflecting sustained demand for digital payment platforms, embedded finance, lending solutions and enterprise financial services.

Saudi Arabia captured the highest investment volume among MENA markets, while the UAE continued to maintain strong startup activity across fintech, AI and enterprise software. Egypt also recorded investment rounds, particularly in technology-enabled financial services and digital commerce.

Investors increasingly favoured startups demonstrating clear revenue growth, scalable business models and strong regulatory alignment, particularly within highly regulated sectors such as financial services.

AI and enterprise software continue attracting capital

Beyond fintech, artificial intelligence, SaaS platforms, logistics technology and digital infrastructure remained attractive sectors for investors.

The recent funding rounds indicate that venture capital firms are prioritising technologies capable of improving operational efficiency, automation and enterprise productivity as businesses across the region accelerate digital transformation.

Early-stage startups continued to receive the majority of investments, although investors maintained a cautious approach by concentrating capital in businesses with proven market traction.

Investment climate remains resilient

While regional venture funding has moderated compared with record levels seen in previous years, investor appetite remains healthy for startups operating in strategic sectors supported by government digital economy programmes.

Saudi Arabia and the UAE continue to benefit from expanding venture ecosystems, sovereign-backed investment initiatives and an increasing number of international investors entering the region.

Recent industry data also shows fintech remains MENA’s largest funded sector during 2026, underlining the region’s ongoing transition towards digital financial services and cashless economies.

As capital becomes increasingly selective, startups with strong fundamentals, sustainable revenue models and regional expansion strategies are expected to remain the primary beneficiaries of venture investment throughout the remainder of 2026.

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Saudi Arabia Sees 23% Surge in E-Commerce Business Registrations in Q2 2026

Saudi Arabia’s e-commerce sector continued its rapid expansion during the second quarter of 2026, with the number of commercial registrations for online businesses increasing by 23% year over year, underscoring the Kingdom’s accelerating digital transformation and growing entrepreneurial activity.

According to newly released official figures, commercial registrations for e-commerce businesses reached 48,497 by the end of Q2 2026, up from 39,366 during the same period a year earlier. The figures highlight the sustained momentum of Saudi Arabia’s online retail ecosystem as digital commerce adoption continues to rise across consumers and businesses.

Digital Economy Continues to Accelerate

The increase reflects the Kingdom’s broader efforts to diversify its economy through digital innovation under Vision 2030. Government initiatives supporting entrepreneurship, digital payments, logistics modernization, and SME development have helped create a favorable environment for online businesses.

The growing number of licensed e-commerce companies also indicates increasing confidence among entrepreneurs looking to establish digital-first businesses across retail, services, and marketplace platforms.

Strong Momentum Across Online Retail

Saudi Arabia has become one of the Middle East’s fastest-growing e-commerce markets, driven by high internet penetration, widespread smartphone usage, and expanding digital payment infrastructure.

Industry analysts note that consumer demand for convenient online shopping, combined with investments in fulfillment networks and last-mile delivery services, continues to encourage new businesses to enter the market.

The continued rise in commercial registrations suggests that competition within the Kingdom’s e-commerce sector is expected to intensify as more merchants transition to digital channels.

Vision 2030 Driving Digital Business Growth

The latest registration figures align with Saudi Arabia‘s long-term strategy to build a diversified digital economy. Authorities have introduced multiple initiatives aimed at simplifying business formation, encouraging innovation, and increasing private-sector participation in technology-driven industries.

As digital commerce becomes an increasingly important contributor to economic activity, continued growth in business registrations is expected to support employment, investment, and cross-border trade opportunities throughout the Kingdom.

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Tabby Secures Consumer and SME Finance Licenses in Saudi Arabia, Expanding Beyond BNPL

Saudi fintech unicorn Tabby has obtained consumer finance and SME finance licenses from the Saudi Central Bank (SAMA), enabling the company to offer longer-term financing options for consumers and working capital solutions for businesses. The move marks a significant step in Tabby’s evolution from a buy now, pay later (BNPL) provider into a broader digital financial services platform.

Tabby announced that the new licenses will allow eligible customers in Saudi Arabia to finance purchases exceeding SAR 2,000 ($533), with financing limits reaching up to SAR 50,000 and repayment terms of up to 12 months. The company’s extended financing plans are already available across selected merchant partners, including Noon, IKEA, Almosafer, flynas, Fitness Time, and Almanea.

New Licenses Open Higher-Value Financing Categories

The expanded financing capabilities enable Tabby to move beyond its traditional short-term BNPL model, which primarily covered lower-value retail purchases. The company can now support larger transactions in categories such as education, travel, healthcare, furniture, used vehicles, and short-term accommodation.

The financing products are structured under Shariah-compliant Murabaha agreements, with costs disclosed upfront and fixed throughout the repayment period. According to the company, customers will not face compounding charges or late fees.

The SME finance license also allows Tabby to provide working capital to merchants operating on its platform, particularly small and medium-sized e-commerce businesses that often struggle to access financing through traditional banking channels. By leveraging transaction and merchant data from its ecosystem, Tabby aims to offer more tailored financing solutions and improve credit assessment capabilities.

Tabby currently serves more than 25 million registered users and over 65,000 businesses across the GCC, with Saudi Arabia representing its largest market. The new regulatory approvals align with Saudi Arabia’s Vision 2030 objectives of increasing financial inclusion, promoting fintech innovation, and expanding access to transparent credit solutions for consumers and businesses.

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