Data from Euromonitor International indicates that Saudi Arabia’s e-commerce retail sales reached approximately SAR 48.7 billion in 2025. In its report on the retail sector as a whole, the company estimates the value of Saudi retail sales at approximately SAR 436.1 billion in the same year.

Dividing the first figure by the second gives us approximately:

11.2%

In other words, approximately one riyal out of every nine riyals spent in Saudi retail passes through e-commerce, according to Euromonitor’s definition.

This is where the most important economic idea emerges.

The market is attractive to investors not only because it has become large, but because a significant share of spending still takes place outside digital channels.

Investors sometimes call this Headroom: the gap between the size the market has reached and the size it could reach if consumer behavior continues to change.

This does not mean that all store sales will eventually move online, or that growth is guaranteed. Some products are inherently better suited to stores, and some consumers want to see or try a product. Shipping, returns, and delivery costs can also make online sales less attractive in some categories.

But relatively low digital penetration, combined with an inflow of capital, explains why investors are paying close attention to the market.

What Does DTC Mean, and Why Do Companies Care About It?

The chart presented by Bloomberg Intelligence, based on Euromonitor/Passport, offers an entirely different perspective.

A number of regional and Saudi companies lead direct-to-consumer e-commerce sales shares in their respective sectors. Among the most prominent are:

Savola 30.8%, eXtra 28.8%, Jarir 22.4%, and Al-Dawaa 19.5%.

But these figures require careful reading.

The term DTC, or Direct-to-Consumer, means “selling directly to the consumer.”

Imagine a company selling its product in three ways.

It might sell it in its traditional store, through an intermediary platform such as a large online marketplace, or directly through its own website and app.

In the context of this chart, DTC refers, in simplified terms, to e-commerce sales made through the company’s direct digital channel, rather than through an intermediary platform.

The economic advantage of this model is that the company owns not only the sale, but also a greater share of the customer relationship.

It knows what the customer bought, when they bought it, how often they returned, and which offers they responded to.

This data can itself become an important economic asset.

But DTC Is Not “Free Money”

It may seem easy to ask: Why don’t all companies sell directly to consumers and eliminate intermediary platforms?

Because intermediaries perform real economic functions.

A large platform may bring in millions of customers, manage payments, contribute to delivery, and provide trust and product comparison.

When a company decides to sell directly, it may save part of the commission, but in return it takes on greater responsibilities:

Attracting customers, operating the website or app, marketing products, collecting payments, preparing orders, delivery, customer service, and managing returns.

That is why the right question is not:

Is DTC better than selling through platforms?

Rather:

When is the value of owning the customer greater than the cost of reaching and serving them?

This is one of the most important questions being studied by e-commerce professionals today.

What Do Savola, eXtra, and Jarir’s Strong Performances Tell Us?

A common mistake must be avoided here.

When the chart says Savola’s share is 30.8%, this does not mean that 30.8% of Savola’s total sales come from the internet.

According to the note beneath the chart, the figure represents the company’s share of the total online DTC market in the sector in which it operates.

Savola—through its food retail-related business—is compared with companies in its market, while eXtra and Jarir are measured within the markets in which they compete.

Therefore, the figures should not be compared as though all eight companies were competing in a single market.

This is not a competition between Savola and Jarir for the same customer, but rather an indicator of each company’s digital strength within its sector.

This small detail completely changes how the chart should be interpreted.

From Store to “Commerce Ecosystem”

One of the most notable shifts in the digital economy is that e-commerce no longer means simply creating a website and placing products on it.

Behind the button a consumer presses to buy a phone, book, or groceries lies an extensive ecosystem:

Inventory, warehouses, payments, data analysis, demand forecasting, pricing, digital marketing, fulfillment centers, delivery companies, customer service, and returns management.

That is why RLC Global Forum points out that e-commerce-related investment is expanding into logistics, fulfillment, and digital infrastructure, rather than focusing solely on online stores.

This is where Saudi Arabia’s opportunity may be greater than simply increasing online shopping sales.

As e-commerce grows, supporting markets emerge around it.

A company that does not sell a single product to consumers may build warehouses for retailers.

Another may develop payment systems.

A third may analyze buyer behavior.

A fourth may manage the “last mile,” meaning the final stage of a product’s journey from the distribution center to the customer’s door.

In this way, e-commerce growth becomes growth for an entire economic chain.

What Should We Read Behind These Numbers?

The significance of this opportunity increases when viewed alongside capital flows: Saudi Arabia captured approximately 93% of e-commerce investment in the Gulf countries in 2025, compared with 46% in 2021, according to data presented by Bloomberg Intelligence.

The real value lies in understanding the relationship between the figures.

Investment tells us where capital is placing its bets.

Penetration tells us how deeply digital behavior has become part of the market.

Market Share tells us where a company stands relative to its competitors.

And DTC tells us who owns the direct relationship with the customer.

When we bring these four indicators together, the picture changes.

The data does not portray Saudi Arabia as a “fully mature” e-commerce market, but rather as a market attracting substantial capital while a large share of retail trade still takes place offline.

This is precisely the gap that investors and companies are trying to explore.

Opportunity Is Not a Guarantee

There is a difference between having room for growth and actually achieving growth.

Online sales may rise, but the cost of acquiring customers may rise with them.

Orders may increase, but delivering each order may be expensive.

A company may achieve strong revenue growth while its profit margins come under pressure from discounts, shipping, and returns.

Therefore, the most important question in the next phase will not simply be:

Who sells more online?

But also:

Who can turn each online sale into a profitable, sustainable relationship with the customer?

This is the real transition from thinking about an “online store” to thinking about the e-commerce economy.