Saudi Arabia is currently one of the main powers in the digital economy, capturing about 93% of e-commerce investments in the Gulf Cooperation Council (GCC) countries by 2025. This figure has significantly increased from 46% in 2021 and reflects the growing role of this country in shaping the future of e-commerce in the region.
Growth Opportunities in Retail
Despite these successes, the penetration of e-commerce in the Gulf retail sector remains limited, indicating that there is ample room for growth in the coming years. In this regard, the results of the "New Geography of Growth" session held by the RLC Global Forum and Selfridges in London show that e-commerce penetration in this sector is only 11%.
The Gulf region is continuously strengthening its role in shaping the future of the global luxury goods market, a movement driven by strong domestic demand, sustainable investment flows, and an increasing inclination towards global markets. Discussions during this session indicated that e-commerce investments are gradually moving beyond retail and expanding into logistics, order fulfillment, and digital infrastructure.
Challenges Ahead and the Future of Investment
Panos Linardos, President of the RLC Global Forum, pointed out that growth opportunities in markets, sectors, and companies are becoming increasingly unequal, and investments are becoming more selective. He emphasized the importance of understanding the factors that contribute to rapid growth in some sectors and companies while others face slower growth.
Deborah Aitken, Senior Retail Analyst at Bloomberg Intelligence, stated: “We are still seeing growth in the Gulf countries, although this growth will proceed differently than in the past. It is expected that the recovery of tourism will take longer, while domestic investments and the establishment of regional capital continue to rise.”
