Saudi e-commerce sales soar as Mada card transactions rise 57%

In April, Saudi Arabia experienced a significant surge in e-commerce sales using Mada cards, achieving a total of SR23.27 billion, equivalent to $6.2 billion. This figure represents a remarkable 57 percent increase compared to the same month in the previous year, as reported by the Saudi Central Bank, SAMA. Online transactions via Mada cards also reached over 132 million during this period, indicating a year-on-year rise of 40.75 percent, and demonstrating an increasing consumer shift towards digital payments. In contrast to the growth seen in e-commerce, the value of point-of-sale (POS) purchases at physical retail outlets exhibited a slight decline, amounting to SR52.22 billion, which reflects a 1.38 percent decrease from the prior year. This paradox suggests that while more transactions were conducted in-person, with POS numbers climbing by approximately 11.6 percent to nearly 891.5 million, the average spending per transaction dropped. Consumers appeared to be more frequent in their use of card payments, but were cautious about expenditure levels. Additionally, the Kingdom is making strides in enhancing its maritime services, recently introducing the MEDEX shipping service at Jeddah Islamic Port. This initiative links the port to twelve regional and international ports, facilitating trade connections with locations such as Abu Dhabi, Jebel Ali, Karachi, and Colombo. Managed by global logistics firm CMA CGM, this effort not only supports operational efficiency at Jeddah Islamic Port but also aligns with Saudi Arabia's National Logistics Strategy aimed at boosting the logistics sector's contribution to the economy from 6 percent to 10 percent by 2030. These developments reflect a broader strategy for economic diversification and the enhancement of infrastructure that positions Saudi Arabia as a logistical hub. The kingdom's increasing e-commerce activities paired with improved port facilities illustrate efforts to adapt to changing consumer behaviors and economic conditions, paving the way for a more robust digital economy in the upcoming years.