Setting up an E-commerce Business in Saudi Arabia: Procedures, Regulations and More
From incorporation essentials to compliance requirements, this complete guide lays out the steps to set up an e-commerce business in saudi
With a 34 million population and an almost 100% internet penetration rate, and a supportive business environment, Saudi Arabia represents a highly attractive target for global e-commerce businesses.
The e-commerce market is projected to reach $68.94 billion by 2033, growing at a 12.10% CAGR. A key driver of the sector’s rapid expansion is the enhanced digital payment infrastructure. In 2024, e-payments accounted for 79% of all retail transactions, up from 70% the previous year.
For entrepreneurs interested in setting up an e-commerce company in this dynamic market, this guide is your first major step to registering a 100% foreign-owned business in Saudi Arabia.
Setting Up an E-commerce Business in Saudi Arabia: What is the Process Like?
Entering the Saudi market requires completing the three-stage business setup process, as outlined below.
First Stage: Legal Entity Establishment (~1 Month)
- Secure a Ministry of Investment of Saudi Arabia (MISA) investor license
- Reserve your company name
- Draft and notarize the Articles of Association (AoA)
- Obtain a Commercial Registration (CR)
- Register with the Chamber of Commerce (CoC)
Second Stage: Authorization and Workforce Setup (~2 Months)
6. Obtain a company seal
7. Register with the Ministry of Labor
8. Register with the General Organization for Social Insurance (GOSI)
9. Register a National Address
10. Secure a GM visa
11. Finalize tax compliance through the General Authority of Zakat and Tax (ZATCA), including VAT registration
Final Stage: Residency and Banking (~3 Months)
12. Activate the Chamber of Commerce account
13. Facilitate the general manager's health insurance
14. Do a medical checkup
15. Obtain your Iqama (residence permit)
16. Register with the Muqeem portal for streamlined visa and residency management.
17. Register with the Absher portal for an array of e-government services
18. Register with the Qiwa portal for business services designed for SMEs.
19. Register with the Mudad Portal to manage essential municipal services for your company.
20. Lastly, open a bank account
Understanding the E-commerce Regulatory Landscape in Saudi Arabia
The continued e-commerce growth necessitates robust regulation to safeguard the rights and interests of consumers and ensure businesses operate with integrity while offering quality products and services.
Staying informed with these regulations helps foreign businesses avoid regulatory pitfalls, maintain a competitive edge, and thrive in a conducive environment that aims to balance innovation with consumer protection.
The e-Commerce Law, enacted in 2019, is the main law that governs online transactions. It provides clear product information and terms of service, enhances protection of consumer data, and offers privacy mechanisms for addressing consumer complaints and disputes.
Saudi Arabia has already put in place stringent data protection regulations to ensure that businesses handle consumer information responsibly. The Anti-Cyber Crime Law addresses crimes related to information systems and cyber activities and reinforces effective measures for combating online fraud and breaches of privacy.
Adhering to these regulations builds trust among customers and stakeholders, while providing a legal foundation for sustainable growth in the expanding digital sector.
Key Compliance Requirements for E-Commerce Expansion in Saudi Arabia
Foreign businesses intending to do business and set up a business in Saudi Arabia must comply with the following regulatory requirements.
- Commercial Registration (CR): Secure a CR certificate from the Ministry of Commerce (MoC) to establish a business.
- MISA License: Obtain a foreign investment license from MISA, which forms a legal basis for a foreign company in Saudi.
- Cybersecurity: Implement security measures to protect online platforms and secure payment gateways against cyberattacks.
- Saudization Quotas: Meet local talent hiring quotas for logistics and customer service roles, as mandated by the Nitaqat Program.
- ZATCA Registration: Register with ZATCA to issue VAT-compliant invoices and file tax returns on time.
- Customs Compliance: Ensure timely customs clearance for imported goods by complying with ZATCA and SFDA import regulations.
Related read: Key Compliance Areas in Saudi Arabia for Foreign Businesses
Why Set Up an E-Commerce Business in Saudi Arabia?
Saudi Arabia offers compelling advantages for e-commerce entrepreneurs and established businesses looking to expand globally.
Some of the world’s most recognized names, like Amazon, Alibaba, Carrefour, and Noon, are already deeply embedded in the market, capitalizing on the Kingdom’s robust digital infrastructure and growing online consumer base.
Their presence speaks volumes about the ease of entry and the long-term growth prospects of e-commerce in Saudi Arabia.
Companies entering Saudi Arabia’s e-commerce space will find a rapidly growing market driven by digitally savvy consumers and increasing online spending. Saudi Arabia's e-commerce market sales reached SAR 21 billion ($5.5 billion) in January alone, representing a 45% year-on-year increase.
The "Phygital" shopping experience continues to gain ground, with global players like Lenskart realizing the huge opportunity lying in this space.
Lenskart, a global direct-to-consumer (D2C) eyewear brand that entered the market via AstroLabs, the Gulf's leading business expansion platform, has chosen Saudi Arabia as a focus market for its operations. Currently, it runs a chain of six stores, four in Riyadh and two in Jeddah.
Saudi Arabia’s rapid emergence as a global logistics hub draws global e-commerce companies aiming to leverage its resilient supply chains, competitive talent pool and cutting-edge technology and achieve long-term financial gains.
The Kingdom already aims to establish 59 logistics centers across over 100 million sqms by 2030 to strengthen its logistics infrastructure, making it easier for e-commerce businesses to expand service levels and spread geographically.
FAQs for Setting up an E-commerce Business in Saudi Arabia
What are the key steps for e-commerce business setup in Saudi Arabia?
To start an e-commerce business in Saudi Arabia, businesses should complete the three-stage market expansion, as described here. Thanks to its decade-long, in-market expertise, AstroLabs can help you get operational in less than 3 months and ensure fast and seamless e-commerce business registration.
Can a foreigner set up a business in Saudi Arabia?
Foreigners can fully own and operate a 100% foreign-owned e-commerce business.
How big is the e-commerce market in Saudi Arabia?
The Saudi Arabia e-commerce market was estimated at $24.67 billion in 2024, is expected to grow at a CAGR of 12.10% to reach $68.94 billion by 2033.
In terms of GDP contribution, the sector is expected to make up 12% of GDP by 2025.
Do you need to register with MAROOF to run an online store?
The Ministry of Commerce (CoC) requires E-stores to register their businesses via the "Business Platform" (business.sa), managed by the Saudi Business Center, instead of Maroof, which was previously used for that purpose. The move aims to streamline the registration and verification process and ensure a smooth user experience while enhancing the security of online transactions.
