Riyadh - Sharikat Mubasher: The e-commerce ecosystem in Saudi Arabia witnessed significant growth as e-commerce startups secured SAR 1.6 billion ($428 million) in venture capital (VC) funding in 2023, a recent report by the Small and Medium Enterprises General Authority (Monsha’at) unveiled.

The report, titled ‘Unlocking E-commerce for SMEs’, revealed that the total number of verified commercial registrars for e-commerce businesses by the Saudi Business Center reached 16,556 in 2023.

As the second-highest VC-funded sector in the Kingdom, e-commerce is expected to contribute 12% to the national gross domestic product (GDP) in 2025, achieving a compound annual growth rate (CAGR) of 15% between 2020-2025. Additionally, the number of e-commerce users is anticipated to hit 34.5 million by 2025.

The e-commerce total revenues are projected to touch SAR 260 billion by 2025, while cashless payments are expected to account for 80% of payments in the Kingdom by 2030.

Muhannad Almulhim, an E-commerce Consultant at the E-commerce Council, said: “By 2024, the expected growth in e-commerce revenues is estimated at SAR 211 billion according to the E-Commerce Council, indicating positive developments in several key areas, including infrastructure and the legislative environment made possible by Vision 2030.”

Moreover, the report highlighted the impact of e-commerce on the SME sector and the challenges facing e-commerce SMEs in the Kingdom, as well as Monhsa'at's efforts to nurture SMEs in the e-commerce sector.