E-Commerce in Saudi Arabia: A New Growth Engine and Zid's Role in Empowering Merchants

E-commerce in Saudi Arabia is no longer an extra sales channel; it has become a core part of the retail and digital economy. With wider adoption of digital payments and a strong infrastructure, merchants of every size can now reach customers wherever they are. This article looks at the numbers behind the shift and at how Zid helps merchants and supports the growth of the sector.

The market in numbers

According to Saudi Central Bank (SAMA) data, e-commerce sales through mada cards reached SAR 69.3 billion in Q1 2025, up 56% year over year, across more than 370 million transactions. In July 2026 alone, sales reached about SAR 37.6 billion, up 26% year over year, across roughly 198 million transactions.

Indicator	Value	Source
mada e-commerce sales, July 2026	SAR 37.63 billion (+26% YoY)	SAMA
mada e-commerce transactions, July 2026	197.6 million	SAMA
mada e-commerce sales, Q1 2025	SAR 69.3 billion (+56% YoY)	SAMA / SPA
Electronic share of retail payments, 2024	79%	SAMA
E-commerce market size (estimate), 2025 / 2026	USD 27.96 / 31.29 billion	Mordor Intelligence
Forecast for 2031	USD 54.87 billion (11.92% CAGR)	Mordor Intelligence
Internet penetration / 5G coverage	99% / 78%	Mordor Intelligence

Note: market-size estimates vary between research firms depending on scope (retail only, or including services and other segments), so these figures are best read as indicators of the overall direction.

Why e-commerce matters to the Kingdom's economy

Supporting Vision 2030: The shift to a cashless economy is moving fast. Electronic payments passed 79% of retail payments in 2024, ahead of the 70% target set for 2025.
Empowering SMEs: A merchant can now open a store and reach customers across the Kingdom without physical branches.
Easier shopping: With near-universal internet and 5G coverage, mobile shopping is part of everyday consumer habits.
New jobs: The sector drives activity in digital marketing, logistics and technology.

A woman tracking her order on a phone next to a laptop and shipping boxes

Zid: an integrated ecosystem for modern commerce

Zid was founded in 2017 in Riyadh to help merchants move to modern retail. With the "Total Commerce" vision unveiled at Ripple 2024, a merchant can manage an online store, social media sales and physical outlets from a single dashboard.

Zid's announced figures as of the end of 2024

As shared by the company in an Arab News interview in December 2024:

Active merchants exceeded 12,000, with the merchant base growing by more than 30% during the year.
SKUs listed on the platform exceeded 4 million.
Merchants achieved 25% year-over-year growth in gross merchandise value (GMV).
The CEO cited a 50% increase in average basket size and conversion rate for merchants on the platform.
Merchants in the "10x" program reported revenue growth of up to tenfold.
Total funding raised reached USD 59 million, including a USD 50 million Series B.

How Zid strengthens the sector

Shipping and logistics: Access to more than 30 shipping and fulfillment providers at special rates for Zid merchants, plus a unified dashboard for inventory and shipment tracking.
Marketing and channels: Integrations with Snapchat, TikTok, Meta and Google, AI-powered marketing tools, a link to Amazon Marketplace, and work on integrating platforms such as Trendyol and Noon.
Payments and financing: Integrated payment solutions and an expanding Zid Financing offer that helps merchants access capital.
Enablement and education: Zid Academy teaches skills such as marketing and supply chain.
GCC expansion: Zid is growing its presence across the GCC and opens cross-border selling for Saudi merchants.

A modern city with elevated train tracks and contemporary architecture

Opportunities and challenges ahead

Expanding into sparsely populated regions still means higher delivery costs than in major cities, although national road and postcode programs are gradually narrowing the gap. On the opportunity side, cross-border trade, social commerce and AI-driven personalization stand out.

Conclusion

The numbers point to a sector growing steadily on top of a strong digital payments backbone and wide connectivity. Zid plays a central role by bringing the store, payments, shipping, marketing and financing together in one place, lowering barriers for merchants and speeding up their entry into the digital economy.