In recent years, the Islamic holy month of Ramadan has become a crucial period for businesses in the Middle East, especially in the field of e-commerce. This year, the surge in online sales during Ramadan has given a significant boost to Saudi Arabia’s entrepreneurial ecosystem.
E-commerce sales have been on the rise in Saudi Arabia for some time, but this year, Ramadan has brought a surge in online transactions. According to data from payment gateway PayTabs, e-commerce transactions in Saudi Arabia increased by 56% during the first week of Ramadan, compared to the same period last year. This growth has been driven by a shift towards online shopping, as more consumers prefer the convenience of shopping from home, especially during the pandemic.
The rise in e-commerce during Ramadan has had a significant impact on Saudi Arabia’s entrepreneurial ecosystem. Entrepreneurs, small business owners, and start-ups have all benefited from the increased demand for online shopping. Many businesses have reported a surge in sales during Ramadan, with some even recording their highest-ever revenues during the holy month.
One such business is Muzmatch, a Muslim dating app that recently launched a halal travel service called Salam. During Ramadan, the app saw a surge in bookings for Salam, with many Muslims looking to travel during the holy month. Shahzad Younas, the CEO of Muzmatch, said that the company had seen a 50% increase in bookings during Ramadan, compared to the same period last year.
Another business that has benefited from the surge in e-commerce is Salla, a Saudi Arabian e-commerce platform that recently raised $8.5 million in a funding round. The platform has seen a surge in demand during Ramadan, with many consumers turning to online shopping for their Eid al-Fitr gifts. The platform’s CEO, Nidal Kamouni, said that the company had seen a 25% increase in sales during Ramadan, compared to its average monthly sales. “We’ve seen more people turning to online shopping for their Eid gifts, and that has helped us grow,” he said. He also thanked the investors who had contributed to the company’s success. “Their support has enabled us to expand our reach and offer a better product to our customers,” he said.
The holy month of Ramadan has always been an important time of the year for Muslims around the world. But in recent years, it has also become a crucial period for businesses, especially in the Middle East. This is because the month-long period of fasting and prayer is also a time of heightened consumer activity, particularly in the e-commerce space.
Saudi Arabia, in particular, has seen a significant surge in e-commerce activity during Ramadan in recent years. According to data from payment gateway PayFort, online sales in the country grew by 22% during the month of Ramadan in 2018, compared to the same period in the previous year. This trend continued in 2019, with online sales during Ramadan increasing by a further 18% year-on-year.
The COVID-19 pandemic, which forced many people to stay at home, has only accelerated this trend. In 2020, e-commerce sales in Saudi Arabia surged by a whopping 83% during Ramadan, as consumers turned to online shopping to avoid crowded malls and supermarkets.
This surge in e-commerce activity has had a positive impact on Saudi Arabia’s entrepreneurial ecosystem. With more people shopping online, there has been a corresponding increase in the number of online businesses and startups. This has created a vibrant and dynamic entrepreneurial ecosystem, with new ideas and innovations emerging in a variety of sectors, from e-commerce and logistics to fintech and digital marketing.
One example of a successful Saudi Arabian startup that has benefited from this trend is Noon, an e-commerce platform that was launched in 2017. Noon has quickly become one of the leading online retailers in the region, offering a wide range of products, from electronics and fashion to home appliances and groceries.
