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Majority of Saudi consumers set to ramp up online spending in next 12 months

This year’s report highlights that over half of Saudi consumers are looking to boost their online spending in the next 12 months

Saudi Arabia’s e-commerce sector is rapidly expanding, with 53% of customers in the Kingdom planning to increase their online spending in the next 12 months, as per a survey.

A report from UK-based tech firm reveals that the number of regular e-commerce shoppers in Saudi Arabia has grown by 180% in the last four years, indicating the increasing digital marketplace in the Kingdom.

Furthermore, the analysis shows a 90% increase in the number of individuals making online purchases at least once a day since 2020.

In its analysis, noted, “Amidst an era marked by swift digital transformation, Saudi Arabia’s digital payments ecosystem has demonstrated exceptional growth, while Saudi consumers continue to be increasingly enthusiastic about online shopping demonstrated by an impressive 180 per cent increase in monthly e-commerce shoppers since 2020.”

“This year’s report highlights that over half of Saudi consumers (53 per cent) are looking to boost their online spending in the next 12 months. This optimistic outlook reflects the digital economy’s resilience and the still untapped growth potential in Saudi Arabia,” it added.

The study highlighted the increase in digital payments in the Kingdom, noting that the number of consumers who prefer cash-on-delivery for online purchases has decreased by 66% since 2020.

The report also revealed that 75% of online shoppers in Saudi Arabia stated that they would choose card payments if the cash-on-delivery option is not available.

“This transition is primarily propelled by consumers’ increasing prioritization of payment security. It also reflects a broader trust in and acceptance of digital payments, aligning with trends observed across the MENA region,” added.

The report highlighted the rapid adoption of digital payments by consumers in the Middle East and North Africa. The overall volume of transactions in the region has grown nearly sevenfold, reaching 678% since 2020.

Additionally, a recent study by management consulting company Arthur D. Little indicated that Saudi Arabia’s fintech sector has made significant progress as it aims to become a regional financial hub.

According to the report, Saudi Arabia has embarked on a journey to transform society to be less dependent on cash transactions.

In April, a separate analysis released by the UK-based data analytics company GlobalData projected that cashless payments in Saudi Arabia are expected to surge by 7.6 per cent in 2024 to $146.8 billion.

GlobalData also noted that the Saudi card payments market will grow at an annual rate of 6.4 per cent between 2024 and 2028 to reach SR705.2 billion.

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