In conversations about digital retail across the Gulf, the United Arab Emirates is often seen as the front-runner. Its advanced infrastructure, compact geography, and high internet usage make it a natural leader in many categories. However, when it comes to online fashion and beauty, Saudi Arabia is actually leading the way.
A Close Contest in Overall E-Commerce, But With Distinct Dynamics
At a glance, the UAE holds a slight edge in overall online retail, with a 16 percent penetration rate compared to Saudi Arabia’s 15 percent. Given the UAE’s urban layout and digital maturity, many expect a wider gap. But that assumption overlooks a couple of key factors.
One is tourism. In the UAE, categories like fashion and beauty heavily depend on tourist spending, with up to 30 percent of offline purchases coming from visitors. These tourists are less likely to shop online, which pulls down the local e-commerce numbers.
Meanwhile, in Saudi Arabia, most online shoppers are local residents. These consumers are highly active online, especially in fashion and personal care, and they’re helping drive the country’s strong digital performance in these sectors.
Saudi Arabia Leads in Fashion and Beauty Online Sales
In both fashion and beauty, Saudi Arabia shows significantly higher online engagement than the UAE. The gap is not just noticeable; it is striking. One contributing factor is the Kingdom’s exceptionally high per capita spending on beauty and personal care, among the highest in the world.
Another important driver is the availability of offline retail. In many parts of Saudi Arabia, brick-and-mortar options for fashion and beauty remain limited. This has led consumers to rely on online platforms to access a wider variety of brands and enjoy the convenience of digital shopping.
Over time, this habit has created a base of savvy, digitally native shoppers who are deeply familiar with e-commerce in these categories.
Fashion and Beauty Account for Half of Online Spending in Saudi Arabia
In most markets, electronics tend to dominate e-commerce, often making up over half of total online spending. Saudi Arabia breaks from that pattern. Here, fashion and beauty together contribute about 50 percent of all online retail sales. Electronics, by comparison, make up roughly one-third.
Several factors have shaped this trend. The fast fashion boom, both from international players and local brands, has widened access and appeal. At the same time, dedicated beauty platforms such as Nice One have built strong consumer trust, offering curated selections and user-friendly services. Brands like Sephora have also implemented successful omnichannel strategies, combining online convenience with meaningful in-store experiences.
A Unique Growth Path in Digital Retail
The evolution of Saudi Arabia’s online retail market is following a distinctive trajectory. Fashion and beauty are not just performing well; they are driving the direction of growth.
For companies, investors, and analysts interested in the region's e-commerce landscape, Saudi Arabia’s fashion and beauty sectors deserve close attention. They are not only reshaping how people shop but also redefining the future of digital retail in the Gulf.
