E-commerce has rewritten the rules across many sectors, but the deepest transformation has been in logistics. The sector is now embedded in daily consumer life — from the moment a product leaves the warehouse, through the distribution centre, to the doorstep with precision and speed.
This article covers the size of Saudi Arabia’s e-commerce logistics market and its growth outlook, the infrastructure being built to support it, and then what that expansion means in practice for your workforce planning.
How Big Is the Saudi Arabia E-commerce Logistics Market?
Before the numbers, a necessary caveat: estimates for this market vary considerably between research houses, and the reason is scope. Does the definition cover warehousing, handling, and last-mile delivery together — or delivery alone?
| Source | Market size | Forecast | CAGR |
|---|---|---|---|
| Mordor Intelligence | USD 2.24 billion (2025) | USD 3.77 billion (2030) | 10.94% |
| IMARC Group | USD 4.58 billion (2024) | USD 13.67 billion (2033) | 12.92% |
The base-year gap is close to twofold. The right reading is not to pick one figure and discard the other, but to notice what every estimate agrees on: double-digit compound growth, sustained through the end of the decade. That is the indicator an operational decision rests on — not the absolute number.
The wider market driving this growth
- Saudi e-commerce: estimated at USD 31.29 billion in 2026, up from USD 27.96 billion in 2025, with projections reaching USD 54.87 billion by 2031 at an 11.92% CAGR (Mordor Intelligence).
- The full Saudi logistics market: generated approximately USD 140.9 billion in 2025, projected to reach USD 264.9 billion by 2033 at an 8.8% CAGR (Grand View Research).
- Retail and e-commerce accounted for 26.6% of Saudi Arabia’s contract logistics market in 2025 (Mordor Intelligence).
What this means: e-commerce logistics is growing faster than the logistics sector as a whole. It is the sub-sector leading the expansion, not trailing it.
Market Segments: Where the Growth Actually Concentrates
Growth is not evenly distributed, and these details determine where you need workforce capacity and when:
- Geographically: Riyadh captured roughly 35% of e-commerce revenue in 2025, while the Eastern Province posts the highest projected growth rate through 2031 at 12.76%.
- By service: Transportation is the largest revenue segment, but warehousing and distribution is the fastest-growing sub-segment in the Saudi logistics market.
- By delivery speed: Standard delivery still holds the largest share, but same-day and next-day delivery records the highest growth rate at around 12.5%.
- Enabling infrastructure: Internet penetration approaching 99% and 5G coverage reaching roughly 78% of residents removes the technical barrier to expansion in both cities and outlying areas.
The operational takeaway for employers: pressure is shifting from intercity transport toward warehousing and last-mile delivery within cities. Both are the most labour-intensive parts of the chain.
The Surge E-commerce Created in Logistics Services
With every convenient online purchase, consumer adoption deepens and demand for efficient, reliable logistics rises sharply. The success of online retailers depends heavily on the ability to fulfil orders quickly and accurately — which is exactly where logistics becomes central to whether that commerce succeeds at all.
This boom has placed significant pressure on logistics companies to adapt and innovate to meet increasingly varied consumer expectations.
How the Surge Has Reshaped the Logistics Workforce
E-commerce has changed the composition of the logistics workforce, with new roles and skills emerging to support its growth. It has created opportunities across delivery services, warehouse operations, and customer service; logistics solution providers have also brought in data processing specialists, software engineers, and UX designers to build and manage the new systems.
Logistics roles facing persistent labour shortages
Many roles in Saudi Arabia’s logistics sector are being progressively localized under Vision 2030, as the government works to reduce reliance on expatriate labour and raise Saudi participation. Some roles, however, are difficult to localize fully or immediately.
Road transport is a clear example, facing a shortage of truck drivers — a field that is hard to localize given the sheer numbers required and the specialised skills involved against rising demand. The Kingdom consequently relies substantially on leased expatriate labour in this area.
You can work with SMASCO to hire professional truck drivers trained on Saudi roads — drivers with full knowledge of and compliance with traffic regulations, and complete regulatory documentation. SMASCO handles recruitment and training, along with all procedures required to obtain work permits and driving licences.
Saudi Arabia’s Ambition to Become a Global Logistics Hub
The master plan for logistics centres covers 59 centres spanning more than 100 million square metres — 12 in the Riyadh region, 12 in the Makkah region, 17 in the Eastern Province, and 18 across the Kingdom’s remaining regions. Work is currently underway on 21 centres, with all expected to be complete by 2030.
These centres will enable local industries to export Saudi products efficiently and strengthen e-commerce by improving connectivity between logistics hubs and distribution centres across regions and cities. They will also provide advanced shipment tracking and streamline logistics activity licensing, particularly following the launch of the Unified Logistics Licence — granted to more than 1,500 local, regional, and international companies — and the two-hour customs clearance initiative delivered with relevant government bodies.
Also planned: 69 logistics platforms distributed across 27 logistics zones, 8 zones at land ports, and 9 zones dedicated to truck parking. Three logistics zones at the Riyadh, Jeddah, and Dammam airports will handle roughly 4–5 million tonnes of air freight annually, while three logistics zones at Jeddah, King Abdullah, and King Abdulaziz ports will handle 14 million containers.
Saleh Al-Zuwaid, official spokesperson for the Transport General Authority, has pointed to 30 agreements signed with the private sector to support bus and heavy vehicle drivers.
Support Programmes for Companies and Logistics Workers
Government initiatives signal the Kingdom’s commitment to integrating logistics with its various transport systems through support for local and international companies. Several incentive programmes have launched for sector workers, including support from the Human Resources Development Fund (HADAF) providing up to SAR 2,400 for those working in passenger transport applications and SAR 3,000 for those in delivery applications.
Companies looking to enter the Saudi market or expand operations here therefore stand to benefit considerably from the ongoing improvements in the sector, the infrastructure development, and the government support behind it.
What E-commerce Logistics Growth Means for Your Workforce
This is the question most market reports skip, despite it being the only practical translation of every figure above.
First: double-digit compound growth means double-digit compound demand. A market growing above 10% annually does not accommodate a static hiring plan. Companies that plan their workforce yearly find themselves a quarter behind, every quarter.
Second: growth concentrating in warehousing and last-mile changes the type of labour required. The shift from intercity transport to in-city warehousing and delivery moves demand away from heavy truck drivers and toward warehouse operatives, materials handling equipment operators, and light vehicle drivers — different categories in qualification, licensing, and cost.
Third: geographic divergence means geographic workforce divergence. The Eastern Province growing fastest while Riyadh remains largest by volume means simultaneous demand in two regions, not sequential.
Fourth: seasonal peaks have become structural. Sale seasons, Eid, and Ramadan drive sharp order volume spikes for limited windows. Covering those peaks with permanent hiring is an excess cost carried all year; covering them without planning means delivery failure during the most important weeks of the year. The operational answer is a blend of permanent core staff and flexible labour.
Fifth: localization and demand run on crossing paths. Rising localization ratios alongside accelerating demand means companies need a dual hiring plan — a long-term Saudization track, and an immediate operational coverage track.
How SMASCO Supports Your Logistics Workforce
As a manpower partner to several of the Kingdom’s largest companies, we cover your requirements across:
- Truck and heavy vehicle drivers, trained on Saudi roads and fully licensed.
- Warehouse, storage, and materials handling personnel.
- Sorting, packing, and order fulfilment labour.
- Last-mile delivery personnel.
We handle the full recruitment, licensing, and regulatory compliance process on your behalf, with flexible contract terms suited to both seasonal peaks and phased expansion.
Contact the SMASCO team today for a consultation on your skilled workforce requirements
Conclusion
Every estimate agrees that e-commerce logistics in Saudi Arabia is growing at a double-digit compound rate through the end of the decade, and that it is outpacing the logistics sector overall. The infrastructure is advancing to meet it — 59 logistics centres and 69 platforms planned by 2030.
What concrete does not build is the workforce. A finished warehouse without qualified staff ships nothing. The companies that plan their labour on the same horizon as their infrastructure are the ones that will actually capture the opportunity.
Frequently Asked Questions
Estimates vary by scope of definition: Mordor Intelligence puts it at approximately USD 2.24 billion in 2025 rising to USD 3.77 billion by 2030, while IMARC Group estimates USD 4.58 billion in 2024 rising to USD 13.67 billion by 2033. What both agree on — double-digit compound growth — matters more than the absolute figure.
Warehousing and distribution is the fastest-growing sub-segment, while transportation remains the largest by revenue. On delivery speed, same-day and next-day delivery records the highest growth rate.
Riyadh holds the largest revenue share at roughly 35%, but the Eastern Province posts the highest projected growth rate through 2031.
Truck and heavy transport drivers are among the most difficult, given the scale of demand and the specialised skills required — which is why the sector relies substantially on expatriate labour in these categories.
Through a blend of permanent core staff and flexible short-contract labour. Permanent hiring to cover peaks carries excess cost year-round, while failing to plan for them means delivery breakdown during the year’s most critical weeks.
Sources
Saudi Arabia Contract Logistics Market report — Mordor Intelligence
Logistics sector overview and the Logistics Platform — Ministry of Transport and Logistic Services · mot.gov.sa
Saudi Arabia E-commerce Logistics Market report — Mordor Intelligence
Saudi Arabia E-commerce Logistics Market report — IMARC Group
Saudi Arabia E-commerce Market report — Mordor Intelligence
Saudi Arabia Logistics Market Outlook — Grand View Research