When we talk about digital retail maturity in the GCC, the UAE often comes to mind as the front-runner. And while it does lead in several categories, such as electronics, grocery, and home, the story shifts when we look at fashion and beauty.
Let’s dive into why KSA, not the UAE, is leading the way in these two key online retail sectors.
1. UAE Leads on Overall Online Retail, But Only Slightly
With an online retail penetration of 16%, the UAE edges out KSA at 15%. Given the UAE’s advanced digital infrastructure and smaller, more urban population, many expect this gap to be larger. But two important factors limit the UAE’s lead:
- Tourist-driven retail: In categories like Fashion and BPC, 20–30% of offline spend comes from tourists, who typically don’t shop online.
- KSA’s digital-native Fashion/BPC Shoppers: Despite a lower overall e-commerce share, KSA’s local consumers are highly engaged online, particularly in Fashion and Beauty.
2.KSA is ahead of UAE in Online Fashion & Beauty
In both Fashion and Beauty & Personal Care (BPC), KSA shows higher online penetration than the UAE and the gap is particularly striking. It is important to note that KSA boasts of one of the highest per capita BPC spends globally.
With a still-developing offline retail ecosystem, many Saudi consumers have long turned to online platforms to access a wider variety of brands and enjoy greater convenience.
This behaviour has created a digitally mature shopper base that is deeply accustomed to e-commerce in these categories.
3. Fashion & Beauty Together Drive ~ 50% of Online Retail in KSA
In most markets, electronics tend to dominate online retail, often contributing over 50% of total GMV. However, KSA breaks this mold. In Saudi Arabia, fashion and beauty together account for half of all online retail spend, while electronics represent around one-third of the market. This shift has been driven by a combination of factors: the surge in fast fashion, both global and homegrown; the rise of trusted beauty platforms like Nice One; and the strong omnichannel strategies executed by players such as Sephora, which have built deep consumer trust and engagement.
KSA’s online retail landscape is evolving differently. If you’re looking to understand how Fashion and Beauty are shaping the future of e-commerce in Saudi Arabia, this is a space worth watching.
Interested in deeper insights? Feel free to reach out – I’d be happy to share more.
