Saudia adds 11 new global destinations/node/2589792/business-economy
Saudia adds 11 new global destinations
Saudia operates more than 530 daily flights. Shutterstock
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Updated 11 February 2025
Mohammed Al-Kinani
Saudia adds 11 new global destinations
Updated 11 February 2025
Mohammed Al-Kinani
JEDDAH: Saudia airline is adding 11 new destinations to its network this year — including Vienna, Bali, and El-Alamein — as part of its global expansion strategy, the company announced.
The new routes also include Venice in Italy, Larnaca in Cyprus, and the Greek destinations of Athens and Heraklion.
Nice in France and Malaga in Spain have also been added to the list.
The expansion follows a 16 percent rise in international passenger numbers last year, with the newly added destinations offering travelers more options across Europe, the Middle East, and Asia, further strengthening Saudia’s position in the aviation industry.
The move aligns with Ƶ’s National Tourism Strategy, which aims to attract 150 million tourists by 2030, create 1.6 million jobs, and boost tourism’s contribution to gross domestic product.
Ibrahim Al-Omar, director general of Saudia Group, said: “Following last year’s operational success, we've implemented a strategic plan for 2025 to ensure continued excellence and meet rising international travel demand.”
He added: “Our destination selection is based on comprehensive feasibility studies and guest preferences. We are committed to providing our international guests with exceptional travel experiences that combine comfort, efficiency, and authentic Saudi hospitality.”
Also joining the network are Antalya in Turkiye, Salalah in Oman, and Bali in Indonesia, expanding Saudia’s reach to over 100 destinations across four continents.
By growing its global network, Saudia is supporting the Air Connectivity Program, which has introduced over 60 new direct routes since its launch in 2021.
This development strengthens the Kingdom’s position as a key travel hub under Vision 2030 and aligns with Ƶ’s aviation strategy, which includes multi-billion-dollar investments to diversify the economy and support the private sector.
Saudia said the expansion is supported by its fleet of 147 Boeing and Airbus aircraft, with plans to receive 118 new aircraft in the coming years to further enhance operational capacity.
With more than 530 daily flights, Saudia’s ongoing international development plan aims to increase its global market share and strengthen connectivity between the Kingdom and the world.
AlUla Development Co. reimagines resort’s cultural legacy
UDC emerging as a key force in shaping a new tourism model grounded in cultural preservation
Updated 04 October 2025
MOHAMMED AL-KINANI
JEDDAH: As Ƶ accelerates efforts to diversify its economy beyond oil, AlUla Development Co. is emerging as a key force in shaping a new tourism model grounded in cultural preservation, sustainability, and community empowerment.
Launched in January 2023 as a wholly owned entity of the Public Investment Fund, UDC was established to lead the development and management of AlUla’s built environment in line with the Royal Commission for AlUla’s vision.
Its mandate includes master planning and delivering tourism, hospitality, residential, and commercial assets that celebrate the region’s heritage while supporting long-term economic growth.
Tasked with transforming AlUla into a world-class destination, UDC works closely with the RCU and private sector partners to implement strategic projects that balance development with cultural authenticity.
From strategy to execution
UDC’s progress on the ground is reflected in several completed projects, including Habitas AlUla, Banyan Tree AlUla, and Cloud7 Residence, as well as Caravan by Habitas and the iconic Maraya Concert Hall — all currently operational and enhancing the region’s tourism offering.
The company is also expanding its portfolio through strategic partnerships. Among them is a 250-key Autograph Collection hotel by Marriott, designed under the “NUMAJ” concept and aiming for LEED Gold certification.
Through adaptive reuse of heritage structures, construction of eco-luxury resorts, and establishment of vibrant commercial hubs, UDC is anchoring AlUla’s rise as both a national treasure and a global cultural tourism hub.
Among the company’s signature developments is the Dar Tantora hotel, which blends traditional mud-brick architecture with modern luxury — a hallmark of UDC’s commitment to authentic, site-sensitive design. The company is also overseeing several infrastructure projects aimed at improving accessibility, environmental sustainability, and service delivery across AlUla’s tourism zones.
Heritage-led tourism drives economic growth
Speaking to Arab News, Yaseen Ghulam, associate professor of economics and director of research at the Riyadh-based Al-Yamamah University, said: “AlUla Development Co.’s role in preserving heritage and promoting cultural tourism of AlUla is similar to Machu Picchu, Peru, the Great Barrier Reef, Australia, and Rome, Italy, each with their unique attractions, revenue generation, and economic impact, showcasing the importance of heritage preservation and cultural tourism in these regions.”
More specifically, he added, AlUla aims to become a prominent center for heritage, culture, and tourism and is in fact a key component of Ƶ’s Vision 2030 strategy, aiming to diversify the local economy and establish the region as a global tourism hub by contributing $31.9 billion to the Kingdom’s gross domestic product by 2035.
The professor noted that AlUla has been included among the top five Saudi cities in the prestigious IMD World Smart City Index that measures the competitiveness of the city to attract tourists.
“As a result, AlUla is thriving in the Kingdom’s entertainment sector, which is expected to create 450,000 jobs and contribute 4.2 percent to the GDP by 2030.”
He added that in 2024 alone, AlUla hosted 85 projects, including films, TV series, commercials, and music videos, across various mediums. “The export potential of Podaxis pistillaris, a local plant valued for its ecological, nutritional, and cultural significance, is being explored.” Ghulam said.
“AlUla also has over 3,000 beehives managed by 28 beekeepers, producing over 12 tonnes of honey annually. The region’s citrus harvest has established it as a top agritourism destination and supports economic diversification.” he added.
Balancing growth with preservation
Despite these advancements, Ghulam noted that the rapid commercialization of heritage sites carries risks. “Tourism and heritage development can benefit the local economy but also has drawbacks like overcrowding and cleanliness issues. Rome in Italy is attracting a significant negative media attraction in this regard,” he explained.
To address this, the Kingdom and UDC are balancing preservation with economic benefits for long-term sustainability.
UDC is also leveraging advanced technologies to enrich visitor experiences while protecting heritage assets. “UDC and Kingdom are also promoting experiential tourism by integrating advanced technologies like artificial intelligence, virtual reality, and augmented reality,” Ghulam added. “AR experiences bring site history to life through smartphones or wearable smart glasses.”
More importantly, he added, strategic alignment between public and private sectors is helping UDC and Kingdom focus on diversifying tourism offerings, reducing seasonality, and developing workforce.
AlUla’s rising investor appeal
As a gateway to AlUla’s sustainable development, UDC offers local and international investors a rare opportunity to engage in heritage-driven tourism and support Ƶ’s Vision 2030, with projects spanning hotels, villas, and penthouses, as well as modern low-rise apartments, offices, retail, warehouses, and supporting infrastructure.
Zahoor Ahmed, vice president at MIE Group and global foreign direct investment and mega-project development expert, told Arab News that AlUla is attractive primarily because it offers something genuinely unique within this region and the heritage experiences that cannot be replicated elsewhere.
Modern technologies like AI can help preserve heritage sites. These efforts ensure AlUla stays relevant not just now, but for decades to come.
Zahoor Ahmed, vice president at MIE Group
“We are talking about sites like Hegra, which is Ƶ’s first UNESCO World Heritage Site. Investors are seeking long term authenticity that will fuel global cultural demand. Tourists today seek experiences deeply rooted in history and culture, and AlUla provides exactly that.” Ahmed added.
The project development expert also pointed to the institutional support backing AlUla’s growth. “There is significant government backing. Just recently, at the Future Investment Initiative, the Royal Commission for AlUla presented plans outlining billions of dollars of public-private investment opportunities. This kind of clarity and scale give investors’ confidence.” he said.
He added that there is also strategic collaboration with international partners, such as the UK National Archives, further boosting AlUla’s global credibility and appeal.
AlUla’s inclusion in the IMD Smart Cities Index, he added, highlights how heritage and technology are working hand in hand. “Modern technologies like AI can help preserve heritage sites. These efforts ensure AlUla stays relevant not just now, but for decades to come,” he said.
Community, culture, and careful design
As UDC accelerates infrastructure development in AlUla, it remains committed to ensuring that growth does not come at the expense of heritage and identity — a key concern for investors and cultural experts alike.
“Maintaining authenticity as the Kingdom’s infrastructure grows requires thoughtful balance and inclusion,” Ahmed noted, adding: “The single most important factor, in my opinion, is community and cultural involvement that attracts a wider global tourism base.”
He cited community initiatives as a success story: “The Royal Commission for AlUla has actively involved local communities by training hundreds of local youths to become heritage guides and hospitality specialists. This ensures that AlUla’s cultural narratives are genuinely expressed by the community itself.”
Ahmed also emphasized the importance of sensitive infrastructure development, citing Dar Tantora hotel as “exactly the type of respectful development that maintains AlUla’s authentic feel.”
He underlined the necessity of regulation and oversight, emphasizing that clear regulations by the RCU are guiding development to ensure that modern infrastructure respects archaeological integrity. “By consistently reinforcing this careful balance, AlUla can expand without compromising the very essence of its heritage.” Ahmed said.
A model for economic diversification
Looking ahead, Ghulam believes AlUla offers a viable model for the Kingdom’s broader goals.
“The Royal Commission for AlUla is enhancing AlUla’s economic, investment, and tourist potential through comprehensive regeneration, integrated partnerships, and inclusive sustainable development,” he said.
Under the AlUla Sustainability Charter, he added, the RCU is focusing on revitalizing the built environment, empowering communities, and promoting light-touch tourism.
“It has established partnerships with organizations in France, China, Italy, the UK, and the US, thus expanding its global network. More importantly, AlUla has been named the Best Cultural Tourism Project in the Middle East.” he said.
As for future policies, Ghulam said governments can play a pivotal role in advancing sustainability by implementing policies and incentives — such as carbon pricing, green bonds, ecosystem service payments, and regulatory frameworks — that encourage private sector participation in conservation efforts and align economic growth with environmental priorities.
Gulf SMEs fuel million-dollar bets, fintech deals heat up
New deals underscore growing capital flows and innovation momentum
Updated 04 October 2025
Nour El-Shaeri
RIYADH: Startups and investors across the Middle East and North Africa announced a wave of new deals this week, spanning artificial intelligence, fintech, property tech, agricultural tech and venture funding, underscoring growing capital flows and innovation momentum.
Ƶ-based Sukna Capital has partnered with Partners for Growth to launch a $50 million specialty lending initiative for high-growth tech companies and SMEs across Ƶ and the wider MENA region.
The Sukna SFDF, the Kingdom’s first open-ended direct lending fund, will offer Shariah-compliant non-dilutive financing including working capital lines, term loans and contract financing.
The fund aims to help founders preserve equity while scaling, supporting Vision 2030 by expanding institutional-quality credit access.
Wa’ed Ventures portfolio company Rebellions secures $250m funding
South Korea’s Rebellions has raised $250 million in a series C round at a $1.4 billion valuation.
The round was backed by Arm, Samsung Ventures, Pegatron VC, and Korea Development Bank, as well as Korelya Capital and Lion X Ventures.
Founded in 2024 by Ali Mohsen and Mohamed Al-Khabbaz, DOO provides AI-powered customer support tailored to regional languages. (Supplied)
The deal builds on earlier investment from Ƶ’s Wa’ed Ventures, which led a $15 million series B extension in July 2024, marking its first investment in MENA.
Rebellions has since established a Saudi subsidiary in Riyadh and deployed its first-generation AI chips in the Kingdom, alongside Japan and the US.
Sadq raises $1m pre-series A extension
Ƶ-based Sadq has closed a $1 million pre-series A extension led by Impact46. Founded in 2022 by Abdullah Allahuo and Salem Al-Badawi, Sadq offers a digital signature and document authentication platform designed to comply with Saudi legal standards.
The funding will support product development, security enhancements and market expansion.
Last April, the company raised $1.5 million in a pre-series A round led by X by Unifonic Fund.
Tadawulcom Real Estate secures $400k seed round
Ƶ-based Tadawulcom Real Estate has raised $400,000 in a seed round led by an angel investor.
The proptech Software-as-a-Service platform enables brokers, companies and individual users to build custom websites, manage listings, contracts and payments, and integrate with government and commercial systems.
The new capital will support the rollout of analytics tools, interactive mapping features and expansion in Ƶ and the broader regional proptech market.
DOO raises $1.7m to expand AI-powered customer support platform
Ƶ-headquartered DOO has raised $1.7 million in a round led by Merak Capital, with participation from Plus VC and other strategic investors.
Founded in 2024 by Ali Mohsen and Mohamed Al-Khabbaz, DOO provides AI-powered customer support tailored to regional languages across WhatsApp, Instagram, websites and apps.
The platform already serves over 50 enterprises across telecom, airlines, banking and e-commerce.
The new funds will accelerate product development, enhance integrations with customer relationship management systems and support expansion across Ƶ and the GCC.
Epic Padel raises $10m seed round to expand US operations
US-based Epic Padel has closed an oversubscribed $10 million seed round led by NowaisWorld and Stryde Ventures, with participation from 305 Ventures, High Water Venture Partners, and Lane Holdings, as well as Off Court Ventures, Silverback Capital and several professional athletes.
Founded in 2023 by Maryam Al-Muslehi and Hala Sarkis, Epic Padel is building a vertically integrated platform combining club operations, investments and tech infrastructure.
The capital will fund the launch of four to six new clubs across the US, including Virginia and Utah.
BECO Capital closes $370m across new early and growth funds
UAE-based BECO Capital has secured $370 million across two new funds, comprising the $120 million BECO Fund IV for early-stage investments and a $250 million growth fund for scale-ups from series B to pre-IPO.
Founded in 2012, BECO has backed companies including Careem, Property Finder and Kitopi.
The new vehicles expand BECO’s assets under management to more than $820 million, positioning the firm to bridge the region’s growth-stage capital gap and provide long-term support from pre-seed through IPO.
Sabika raises six-figure funding to expand Shariah-compliant gold platform
Egypt-based Sabika, a digital investment platform for gold and silver, has raised a six-figure US dollar investment led by M-Empire Angels.
Founded in 2022 by Ibrahim Anwar and Mohammed Darwish, the platform offers Shariah-compliant, asset-backed investment options designed to provide secure and transparent wealth protection.
The new funding will support product enhancements, AI-driven features and Sabika’s expansion into Ƶ in 2025.
Founded in 2022 by Ibrahim Anwar and Mohammed Darwish, Sabika offers Shariah-compliant, asset-backed investment options. (Supplied)
Careem takes minority stake in car rental platform Swapp
Careem has acquired a minority stake in UAE-based Swapp, a digital car rental and subscription platform.
Swapp has been integrated into the Careem Everything App since 2022 as Careem Car Rental, offering users online registration and car delivery within 24 hours.
The investment will support the rollout of new features including instant KYC, one-hour delivery, real-time tracking and lease-to-own options. Swapp plans to expand its regional footprint and launch multi-month rental packages.
Aydi raises $7.5m seed round for AI-powered agri tech platform
UAE-based agri tech startup Aydi has raised $7.5 million in a seed round from COTU Ventures, Daltex and Nuwa Capital, with participation from Magrabi Agriculture and Foundation Ventures.
Founded in 2022 by Hassan Fayed, Aydi provides a field operating system combining satellite monitoring, predictive analytics and conversational AI.
Its AI-powered agronomy assistant, Orth, helps farmers detect crop issues early and improve yields by more than 20 percent. The funds will support the global rollout of Orth.
Iliad Partners secures second closing of $50m venture fund
UAE-based venture capital firm Iliad Partners has announced the second closing of its $50 million fund.
The round saw Eurobank, National Bank of Greece and Piraeus Bank join as limited partners, marking their first VC commitments in MENA.
The new capital nearly doubles Iliad’s assets under management, with plans to accelerate early-stage investments in Ƶ and the UAE.
Tokinvest raises $3.2m pre-seed to expand tokenization platform
UAE-based Tokinvest, a regulated marketplace for real-world asset tokenization, has raised $3.2 million in a pre-seed round backed by Triliv Holdings, Exponential Science and other investors.
Founded in 2024 by Scott Thiel and Matthew Blom, Tokinvest offers tokens representing rights to assets, issued under Dubai’s Virtual Assets Regulatory Authority framework.
The company holds the first multi-asset issuance license from VARA. The capital will fund growth, regulatory expansion and new asset-class onboarding.
Climaty AI raises $2m to scale AI-powered marketing tech platform
India-founded and UAE-based Climaty AI has raised $2 million in early-stage funding led by Turbostart, with participation from angel investors.
Founded in 2024 by Neel Pandya, the company is developing an agentic AI-powered marketing ecosystem that automates campaign planning, content creation and measurement while reducing the carbon footprint of digital advertising.
The fresh capital will support expansion across APAC, EMEA, the UK and North America.
UPFRONT secures $10m pre-seed to address SMB cash flow gap
UAE-based fintech UPFRONT has raised $10 million in pre-seed funding, a mix of equity and debt, co-led by Palm Ventures and SABAH.fund.
Founded in May by Anas Qudah, Abdullah Al-Ghadouni and Mahmoud Abdel-Fattah, the startup is building a financial operating system for SMBs integrating accounting software, real-time analytics and payment automation.
With operations in the UAE and expansion plans for Ƶ, the funding will support product development and scaling to address the region’s $250 billion SMB funding gap.
Monsha’at to host Biban Forum 2025 in Riyadh
Ƶ’s Small and Medium Enterprises General Authority will host Biban Forum 2025 from Nov. 5 to 8 at Riyadh Front Exhibition and Conference Center.
The event, themed “Global Destination for Opportunities,” is expected to attract more than 140,000 visitors from over 150 countries.
The four-day program will feature workshops, panel discussions, exhibitions and deal signings to support the SME and startup ecosystem.
Saudi reforms, rate cuts propel GCC equities to 2-year high
Updated 03 October 2025
Nour El-Shaeri
RIYADH: Gulf equities staged their sharpest rally in almost two years in September, lifted by synchronized central bank rate cuts and Ƶ’s signal of deeper market access.
According to Kamco Invest’s monthly report, the MSCI GCC index advanced 4.9 percent, its biggest monthly gain in 21 months, closing near a three-year high.
Ƶ led with a 7.5 percent jump for the Tadawul All Share Index, while Kuwait, Oman and Bahrain also finished higher; Dubai posted the largest decline among regional peers, down 3.7 percent, with Qatar and Abu Dhabi also ending lower.
This comes as the US Federal Reserve cut rates by 25 basis points, a move mirrored across GCC central banks. Sentiment further strengthened when Saudi authorities signaled plans to scrap the 49 percent cap on foreign ownership of listed companies, spurring renewed foreign buying — especially in banks.
In its monthly bulletin, Kamco stated: “After reporting losses during the previous two consecutive months, Ƶ’s TASI recorded the biggest monthly gain in the GCC during September-2025 after the index surged 7.5 percent during the month.”
It added: “The Index breached the psychological mark of 11,000 points after trading below this level for almost 10 weeks and closed the month at the highest level since May-2025 at 11,503.0 points.”
On a year-to-date basis, Kuwait’s All-Share Index remained the GCC’s top performer at 19.5 percent, ahead of Oman and Dubai, both up 13.2 percent over the first nine months.
Global risk appetite provided a tailwind as well, with world equities up 3 percent, the Nasdaq up 5.3 percent and the MSCI Emerging Markets index up 6.5 percent.
Saudi leads with broad gains
After two down months, Saudi stocks staged a decisive reversal. Notably, the TASI jumped 5.1 percent on Sept. 24 to 11,437, its biggest one-day gain since 2020.
The performance reflected a confluence of factors: the Capital Market Authority’s plan to lift foreign ownership limits, firmer crude despite an OPEC+ decision to raise October output by 137,000 barrels per day, and a synchronized 25-basis-point rate cut by the Saudi central bank following the Fed. The strong September narrowed the index’s year-to-date decline to 4.4 percent.
The financial services index rose 12.3 percent, while banks and insurance gained 10.7 percent and 10.2 percent.
All listed banks advanced following the ownership announcement; Al Rajhi Bank, Saudi National Bank and Bank Albilad climbed 14 percent, 11.94 percent and 11.87 percent, respectively. Large-cap sectors added support, with energy up 3.8 percent and telecom up 5.8 percent.
The National Shipping Co. of Ƶ surged 24.6 percent and Ades Holding rose 9.9 percent. Media constituents rallied as well, led by MBC Group up 23.3 percent and Arabian Contracting Services up 17.7 percent.
Liquidity improved meaningfully: value traded rose 38.9 percent month on month to SR125.7 billion, while volumes edged up to 5.83 billion shares; Al Rajhi Bank topped the value table, followed by MBC Group and Aramco.
Kuwait out in front
Kuwait extended its lead as the region’s top performer this year, with the All-Share Index rising 3.5 percent in September and 19.5 percent year-to-date.
The Main 50 Index climbed 6.7 percent, the Main Market Index gained 5.2 percent, and the Premier Market Index added 3.1 percent, lifting the All-Share to 8,795.7.
With September’s gains, Kuwait reclaimed the top spot in GCC year-to-date performance, supported by a 25 percent jump in the Main 50.
Healthcare rose 18.3 percent, real estate 6.1 percent and consumer discretionary 5.4 percent; banks added 3.1 percent as seven of nine lenders gained.
Trading strengthened as monthly volumes rose 13.3 percent to 10.7 billion shares and value traded increased 15.3 percent to 2.3 billion Kuwaiti dinars ($7.52 billion).
Mixed picture in the UAE
Abu Dhabi’s FTSE ADX Index edged down 0.8 percent to 10,014.6 but remained above the 10,000 mark for a third month. The year-to-date gain stood at 6.3 percent.
Seven of 10 sectors declined, led by consumer staples down 5.8 percent, industrials down 5 percent and real estate down 2.1 percent. Gains in utilities, telecommunications and energy — up 4.8 percent, 4 percent and 3.3 percent — helped limit the overall decline.
Among notable movers, GFH rose 22.9 percent, Union Insurance 15 percent, and ADNOC Gas 6.3 percent. ADNOC Gas also signed a 10-year LNG supply deal with Hindustan Petroleum for 0.5 million tonnes per year from the Das Island facility.
On the downside, ARAM Group fell 33.2 percent, while ADC Acquisition and Umm Al Qaiwain General Investments also retreated.
Dubai’s DFM General Index declined 3.7 percent to 5,839.6, trimming its 2025 return to 13.2 percent, still one of the strongest in the GCC. Sector performance skewed negative, with six of eight sectors down.
Pressure in heavyweight groups — financials down 2.5 percent and real estate down 8.3 percent — drove the headline move. Large banks contributed to the drag, including Emirates NBD down 3.8 percent and Commercial Bank of Dubai down 2.4 percent.
Trading patterns were mixed: volumes fell to 3.8 billion shares, down 20.9 percent, while turnover rose 9.6 percent to 13.2 billion dirhams ($3.59 billion); Emaar Properties led by value at 5.1 billion dirhams.
Despite equity weakness, Dubai’s property cycle stayed active. Real estate sales value climbed 33.7 percent year on year in the first nine months, with transaction counts also higher; the report points to sustained activity in both off-plan and secondary markets.
That momentum remains a key macro pillar for the emirate even as equities consolidated in September.
Valuations and market cap
At the end of September, Gulf markets showed wide valuation disparities, with Dubai trading at 10.7 times trailing earnings and a 4.8 percent dividend yield, Abu Dhabi at 20.7 times with a 2.3 percent yield, and Ƶ at 19.8 times with a 3.5 percent yield.
Kuwait’s premier market stood at 17.2 times with a 2.3 percent yield, Qatar at 12.3 times with 4.5 percent, Oman at 9.1 times with 5.8 percent and Bahrain at 13.7 times with 9.8 percent.
Aggregate GCC market capitalization was about $4.04 trillion, while monthly value traded rebounded to $54.9 billion from $43.6 billion in August.
Two region-wide charts in the report highlight the inflection, with one showing GCC market capitalization recovering toward the year’s highs in September and the other showing value traded rebounding sharply to $54.9 billion for the month.
Combined with the Saudi liquidity surge, these suggest investors responded to clearer policy signals and improved non-oil momentum.
Smaller markets at a glance
Beyond the big four, the report notes that Qatar’s QE20 ended September down 1.5 percent, with the All Share down 1.4 percent; telecoms and insurance outperformed while transportation and banks lagged, and trading value eased modestly to just over 9.1 billion Qatari riyals ($2.5 billion).
Bahrain’s All Share gained 1 percent as financials and materials offset weakness elsewhere, with a sharp uptick in turnover.
Oman’s MSX 30 rose 3 percent, marking a third monthly advance and touching an eight-year intraday high late in the month.
These moves, while secondary to the region’s main drivers in September, contributed to the GCC’s aggregate market cap recovery and were consistent with broader risk-on sentiment.
AI, digital payments and youth fueling Ƶ’s e-commerce boom
Updated 03 October 2025
Miguel Hadchity
RIYADH: Ƶ’s e-commerce sector is poised for unprecedented growth, with the market projected to surge to $708.7 billion by 2033, nearly triple its current size..
In its Ƶ E-commerce Market Report, market research firm IMARC said this remarkable expansion, fueled by artificial intelligence, frictionless digital payments, and a young, tech-savvy population, is transforming how Saudis shop while creating new economic opportunities across the Kingdom.
The convergence of multiple powerful trends is accelerating Ƶ’s transition to an e-commerce powerhouse.
Widespread internet access, with over 98 percent of the population now online, combined with one of the world’s highest smartphone penetration rates, has created ideal conditions for digital retail to flourish.
The COVID-19 pandemic served as a catalyst, accelerating the shift to online shopping, but the growth trajectory has only steepened in its aftermath.
Government initiatives under Vision 2030 are providing crucial support, with digital transformation at the heart of the Kingdom’s economic diversification strategy.
This policy backing, coupled with a demographic dividend — more than half of Saudis are under 30 — has created a consumer base that increasingly prefers the convenience and choice of online shopping.
Mohammed Dhedhi, partner at consumer and retail practice at Kearney, highlighted the structural factors driving this growth.
“Ƶ’s e-commerce surge is underpinned by proactive government support and a tech-savvy infrastructure that outpaces many peers,” he told Arab News.
Dhedhi added that the 2019 e-commerce law and Vision 2030 reforms have boosted online consumer trust and eased digital business.
“In addition, moves across the ecosystem, from widespread digital payments to new fulfillment centers remove friction in online shopping, whereas other emerging markets often grapple with patchy connectivity and cash-heavy systems,” he said.
The Kearney partner highlighted how Ƶ’s young savvy population are “enthusiastically embracing online retail,” and noted that the Kingdom’s structural fundamentals are propelling e-commerce growth faster than in many developing markets, “which is why we see the growth forecast for the market at 12-14 percent per year for the next five years.”
Mohammed Dhedhi, partner at consumer and retail practice at Kearney. Supplied
The new retail reality
Mobile commerce now dominates the landscape, according to IMARC, with smartphones becoming the primary shopping device for millions.
Social media platforms have evolved into vibrant marketplaces, where 35.33 million users discover products through influencers and make purchases without leaving their favorite apps.
Mohamed El-Ansari, CEO of Trendyol Gulf, a Turkish e-commerce platform, emphasized the role of social commerce in reshaping shopping habits. “The country has one of the youngest and most connected populations in the world, with nearly 100 percent Internet penetration, and it is increasingly shopping online in a retail market that still has plenty of room for growth.”
He added: “For Gen Z and millennials especially, the shopping journey often starts with a scroll, and inspiration can turn into intent in seconds.”
Live shopping events and instant checkout features are becoming routine parts of the consumer experience. Payment systems have undergone their own revolution. The digital payments market reached $1.16 billion in 2024, with options such as buy now, pay later plans and mobile wallets reducing reliance on cash.
El-Ansari noted the shift in payment preferences: “Cash on delivery still matters in Saudi, but digital payments are growing quickly, especially with younger, digital first shoppers.”
The CEO highlighted the Kingdom’s national payment card system, Mada, saying that it “remains a core local payment method.” He added that Apple Pay has also become extremely popular in the Kingdom and across the region.
Mada supports both debit and prepaid services within its network, the cards utilize near-field communication technology for contactless payments, enabling secure transactions at both physical retailers and online.
In 2024, e-commerce sales using Mada cards in Ƶ reached SR197.42 billion ($52.64 billion), a year-on-year growth of 25.82 percent, according to data from the Kingdom’s central bank. These figures include payments for online shopping, in-app purchases, and e-wallet transactions, but exclude transactions using credit cards such as Visa and MasterCard.
Enhanced security measures and streamlined checkout processes have helped overcome initial consumer hesitations about online transactions.
Behind the scenes, AI is personalizing the shopping journey like never before. Sophisticated algorithms analyze browsing patterns to serve up tailored recommendations, while chatbots provide instant customer service. Augmented reality allows shoppers to virtually try on clothes or visualize furniture in their homes before purchasing.
Mohamed El-Ansari, CEO of Trendyol Gulf. Supplied
El-Ansari explained Trendyol Gulf’s approach to localization and personalization. “When we entered the Gulf, we avoided a one-size-fits-all strategy,” he said. “We spent time listening to shoppers and sellers, learning what mattered most locally, and building from there.”
He added: “Cultural relevance, from pricing expectations to seasonal product curation, has proven essential to long-term loyalty. This means building local teams, curating region-specific collections, and partnering with Saudi SMEs.”
El-Ansari went on to explain: “It can include modest fashion edits for Ramadan, beauty imagery that reflects diverse skin tones, or packaging that feels premium enough for gifting. These are the kinds of details that make a big difference in creating a trusted, relevant experience.”
Winners and growth sectors
The electronics category continued to lead, with Saudis increasingly turning to online platforms to purchase smartphones, laptops, and accessories. The sector, valued at $13.5 billion in 2024, benefits from detailed product information, user reviews, and competitive pricing available through e-commerce channels.
But the real growth stories are emerging in previously offline sectors. Online grocery shopping has taken off, with consumers appreciating the convenience of doorstep delivery for everyday essentials.
Healthcare e-commerce is expanding rapidly, while fashion retail has found new life through social commerce and virtual fitting technologies.
Small and medium enterprises are proving particularly adept at capitalizing on these trends. The low barriers to entry in digital marketplaces allow SMEs to compete effectively with larger players, often by carving out specialized niches or offering personalized service. Government programs supporting digital entrepreneurship are helping these businesses thrive.
Taking on the giants
Kearney’s Dhedhi added insights on how SMEs can leverage partnerships to compete with global players, saying: “Many local businesses are teaming up with major platforms, for example, e-commerce enabler Zid integrates with Amazon Marketplace, TikTok Shop, and other channels, giving homegrown merchants access to wider customer bases, sophisticated logistics, and marketing tools that the giants provide.”
He added that by co-selling on international marketplaces, joining global fulfillment networks, or co-branding product lines with established retailers, Saudi SMEs can leverage the infrastructure of these marketplaces.
“These collaborations allow small merchants to focus on their niche products and local customer knowledge, essentially turning would-be competitors into growth partners and leveling the playing field with international brands.”
Transforming the Kingdom’s economic future
The implications of this e-commerce boom extend far beyond retail. The sector is creating thousands of jobs, from tech development to last-mile delivery. It’s enabling Saudi entrepreneurs to reach national and regional markets with unprecedented ease. Perhaps most significantly, it’s serving as a cornerstone of the Kingdom’s economic modernization efforts under Vision 2030.
Dhedhi explained the broader economic impact saying that this e-commerce boom is contributing to the non-oil economy.
“Online sales accounted for only about 6 percent of the Kingdom’s $92.6 billion retail market in 2023, but served as an accelerator by invigorating sectors like retail and logistics, retail led non-oil GDP (gross domestic product) growth of 4.2 percent in 2024, and stimulating other industries,” he said.
The Kearney’s partner also explained that this boom can be a strong channel to support and further develop localization initiatives across the Kingdom.
He said that the ecosystem benefits from e-commerce growth, as online shopping boosts demand for warehousing, delivery, digital payments, and tech startups, supporting Vision 2030’s diversification goals.
On the logistics front, El-Ansari addressed concerns about oversupply. “Oversupply isn’t the core issue; it’s smart utilization,” he said, adding: “The real key to speed and reliability is controlling local infrastructure and using it well.”
Dhedhi discussed sustainable solutions for last-mile logistics, pointing to the Kingdom’s goal for 30 percent of all vehicles in Riyadh to be electric by 2030.
He noted that coupled with AI-driven route optimization, these measures significantly shrink the carbon footprint per package. “A blend of electric mobility, smart technology, and new delivery models are being scaled up to make the e-commerce last mile ‘cleaner’ and more sustainable.”
As Saudi consumers grow increasingly comfortable with digital commerce, and as technologies like AI and AR make the experience ever more seamless, the $708 billion projection may prove conservative.
Saudi Authority for Intellectual Property plays a leading role in preventing such cybercrimes
Saudi laws such as the Personal Data Protection Law and the Anti-Cybercrime Law directly safeguard personal identity
Updated 03 October 2025
Haifa Al-Shammari
RIYADH: As modern technology continues to advance, artificial intelligence is becoming central to everyday life, reshaping how people interact with information and identity.
From sourcing data and generating images to powering live-streamed avatars like VTubers, AI is transforming creativity and entertainment. Yet, these innovations also bring risks — particularly the growing threat of digital identity theft. Without proper safeguards, creative ideas and personal likenesses can be copied, misused, or stolen.
A creator’s perspective
Saudi content creator and VTuber PikaLoli knows these challenges firsthand. She explained the importance of protecting her digital persona.
“Since my character and brand exist only online, it’s really important for me to prevent others from copying or misusing my content,” she said.
Shutterstock illustration image
Working as a VTuber, she added, is a demanding role that blends multiple disciplines. “I produce gaming videos, roleplays, and short storytelling on YouTube, blending technology and creativity to bring magical digital experiences to life. Although I appear as an animated character, every part of my content is carefully crafted and fully run by me.”
Since launching her channel in April 2021, PikaLoli has gained more than 1 million subscribers and built an online community she plans to expand further. But the work, she stressed, is more than a hobby: It’s a full-time job that involves voice acting, editing, directing, and staying creative nonstop.”
Despite embracing digital platforms, she remains cautious about AI. “As much as I love how AI can help with animation and content ideas, I don’t fully trust it to represent my identity. It’s my voice, my energy. AI can’t replace the real Pikaloli. I see AI more like a tool or assistant, not a creator.”
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To protect her work, she relies not on watermarks, but on the uniqueness of her character and the loyalty of her fans. “Even if someone tries, I trust my community to recognize and support the original.”
She also uses secure platforms, monitors for content misuse, and stays closely connected with her community. As she put it, “a strong community helps protect you from impersonators too.”
A global challenge
Concerns about identity theft extend far beyond individual creators. Globally, millions fall victim to digital fraud each year. In France alone, more than 200,000 people are affected annually. Offenders can face penalties of up to one year in prison and a fine of 15,000 euros ($16,300), according to the IN Group website.
The website describes identity theft as a crime in which someone assumes the identity of another person — or uses their information without consent — in ways that can cause harm to reputation, finances, or security.
Ƶ’s regulatory framework
In Ƶ, the Saudi Authority for Intellectual Property plays a leading role in preventing such crimes.
“SAIP aims to regulate, support, develop, nurture, protect, enforce, and enhance IP in Ƶ in line with global best practices. It reports directly to his royal highness, prime minister,” said Fahad Alzamil, executive director of corporate communication and spokesman for SAIP.
SAIP illustration photo
He explained that both citizens and residents can register copyrights, trademarks, and patents online.
“All citizens and residents within Ƶ can apply for intellectual property registration through the official website of the Saudi Authority for Intellectual Property. The process requires accurately completing all required fields in the application.”
With AI making it easier than ever to create manipulated images or videos, Alzamil stressed that regulations are in place to protect people from such risks. He cited Article 17 of the Copyright Law, which “prohibits the publication, display, or distribution of a photograph without the permission of the person depicted, covering both traditional and AI-generated pictures or audiovisual works.”
DID YOU KNOW?
• In France, more than 200,000 people fall victim to identity theft every year, leading the government to introduce strict regulations to combat the issue.
• Article 17 of Ƶ’s Copyright Law prohibits the publication, display, or distribution of a photograph without the permission of the person depicted — a rule that applies to both traditional and AI-generated images and audiovisual works.
• The Saudi Authority for Intellectual Property’s Beneficiary Support Center offers comprehensive assistance, including in-person consultations, complaint handling, and follow-up services.
In addition, Saudi laws such as the Personal Data Protection Law and the Anti-Cybercrime Law directly safeguard personal identity.
To strengthen enforcement, SAIP combines advanced monitoring tools with awareness campaigns. According to Alzamil, the authority also works with international bodies like the World Intellectual Property Organization to ensure alignment with global best practices.
Balancing innovation and security
AI offers vast opportunities for innovation but also raises pressing concerns about identity protection. For creators like PikaLoli, maintaining authenticity requires vigilance, while for regulators like SAIP, it means building strong legal and digital safeguards.
As Alzamil emphasized, protecting digital identity is not only a matter of law but also of awareness and collaboration. The future of creativity, he suggested, depends on trust, responsibility, and collective efforts to secure both identity and intellectual property in the digital age.
