15 Oct E-Commerce Business in Saudi Arabia
The Kingdom of Saudi Arabia has become one of the fastest-growing e-commerce markets in the Middle East. With a young, tech-savvy population, high internet penetration, and strong government support for digital transformation, the country presents incredible opportunities for online entrepreneurs.
Under Vision 2030, Saudi Arabia aims to develop a vibrant digital economy by supporting online trade and simplifying business regulations. If you’re planning to launch an online store or digital platform in the Kingdom, understanding the legal requirements for e-commerce is essential to ensure compliance and smooth operations.
Here’s a detailed guide on how to start an e-commerce business in Saudi Arabia and meet all regulatory obligations in 2025.
A business bank account not only enables you to manage transactions efficiently but is also essential for building credibility, meeting compliance obligations, and maintaining a professional image. However, the process of opening a corporate bank account in the UAE can be complex if you are not familiar with local banking requirements and regulations.
This guide by GCC Solutions explains everything you need to know about corporate banking in the UAE, from eligibility and documentation to the step-by-step process and top banking options available in 2025.
1. Understanding the E-Commerce Landscape in Saudi Arabia
Saudi Arabia’s e-commerce sector has grown dramatically over the past five years. Driven by widespread smartphone usage and a growing appetite for online shopping, the market is expected to exceed SAR 50 billion by 2025.
From fashion and beauty to electronics and grocery delivery, consumer behavior has shifted toward convenience, variety, and digital payment security. To support this growth, the government introduced the E-Commerce Law (Royal Decree No. M/126) in 2019 — a comprehensive framework that regulates online business activities, protects consumer rights, and ensures fair trade practices.
Whether you are a Saudi national or a foreign investor, you can now establish an e-commerce business in the Kingdom with 100% foreign ownership, provided you comply with the country’s legal and commercial regulations.
2. Choosing the Right Legal Structure
The first step to starting an e-commerce business in Saudi Arabia is to determine your business structure. The most common forms are:
- Limited Liability Company (LLC) – Ideal for most online businesses and allows full foreign ownership under a MISA license.
- Sole Proprietorship – Suitable for Saudi or GCC nationals running small-scale operations.
- Branch of a Foreign Company – For international businesses expanding into the Saudi market.
Most foreign investors register as LLCs because it offers flexibility, limited liability, and compliance with Saudi commercial laws.
3. Obtaining a MISA License
Foreign investors must apply for an Investment License from the Ministry of Investment (MISA), formerly known as SAGIA. This license authorizes you to operate as a foreign-owned company in Saudi Arabia.
To apply, you’ll need:
- Parent company documents (attested by the Saudi Embassy and Ministry of Foreign Affairs)
- Audited financial statements for the last year
- Business plan outlining your e-commerce model
- Application form and payment of government fees
Once approved, you’ll be allowed to proceed with company registration at the Ministry of Commerce (MoC).
4. Registering Your Business with the Ministry of Commerce
After receiving your MISA license, register your company with the Ministry of Commerce to obtain a Commercial Registration (CR) certificate. This is the official proof that your company is legally established in Saudi Arabia.
During registration, you’ll need to provide your trade name, company objectives, shareholders’ details, and Articles of Association. The process is now fully digital and can be completed through the MoC online portal within a few working days.
5. Obtaining an E-Commerce License
Once your company is registered, you must obtain an E-Commerce License (also called an E-Store License) from the Ministry of Commerce.
This license is mandatory for any business that sells goods or services online in Saudi Arabia, whether through a website, mobile app, or social media platform.
To apply, visit the eCommerce.sa portal and submit:
- Your Commercial Registration
- Business owner’s national ID or Iqama
- Business activity details
- Domain name and website information
After approval, your company will be added to the official Saudi E-Commerce Register, which enhances credibility and consumer trust.
6. Registering a Domain Name and Building a Website
Your website is the cornerstone of your e-commerce business. To operate legally, you must register a domain ending in .sathrough an accredited provider under the Communications, Space and Technology Commission (CST).
Make sure your website complies with Saudi laws, including:
- Displaying full company details (name, CR number, and contact information).
- Providing transparent terms and conditions for returns, refunds, and data use.
- Securing customer data with SSL certificates and privacy measures.
Failure to disclose this information can result in fines under the E-Commerce Law.
7. Tax and Zakat Registration
All registered companies in Saudi Arabia must register with the Zakat, Tax, and Customs Authority (ZATCA) for taxation purposes.
As of 2025:
- Corporate income tax applies at 20% for foreign-owned entities.
- VAT is set at 15% and must be applied to all online sales within Saudi Arabia.
E-commerce businesses must also issue electronic invoices (e-invoicing) in compliance with ZATCA’s Phase 2 e-invoicing system.
8. Payment Gateway Integration
Online payment systems are regulated by the Saudi Central Bank (SAMA). To receive payments legally, e-commerce businesses must integrate SAMA-approved payment gateways such as Mada, STC Pay, HyperPay, or Tap Payments.
These gateways ensure secure transactions and compliance with Saudi anti-money laundering (AML) and cybersecurity laws.
How GCC Solutions Can Help
Setting up an e-commerce business in Saudi Arabia involves multiple government entities, documentation, and compliance procedures. GCC Solutions simplifies the entire process — from obtaining your MISA license and E-Commerce registration to ensuring tax, data protection, and payment compliance.
Our experts handle all aspects of company formation, including business licensing, domain registration, and bank account setup, so you can focus on launching your online store successfully.
With years of experience across the GCC, GCC Solutions ensures your e-commerce venture is fully compliant, efficient, and ready for growth in Saudi Arabia’s booming digital economy.
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