Saudi Arabia Out Of Home (OOH) Delivery Market

Saudi Arabia Out Of Home (OOH) Delivery Market Analysis

The Saudi Arabia Out Of Home Delivery Market size is estimated at USD 24.69 million in 2025, and is expected to reach USD 65 million by 2030, at a CAGR of 21.37% during the forecast period (2025-2030).

Saudi Arabia's out-of-home delivery market is witnessing robust growth, driven by the expansion of e-commerce activities. By the end of Q2 2024, the issuance of commercial records for e-commerce in the kingdom increased by 17.47%, with Riyadh leading in the number of records issued.

Government initiatives are a key driver of this growth. The Saudi government has introduced a comprehensive master plan to establish 59 logistics centers by 2030, aiming to position the kingdom as a global logistics hub. These centers, spanning over 100 million square meters, are strategically distributed across various regions to optimize supply chain efficiency and meet the rising demand for out-of-home deliveries.

Technological advancements are also reshaping the market landscape. Companies are leveraging innovations such as drone deliveries, warehouse automation, and voice ordering to accelerate delivery processes and align with evolving consumer expectations. These advancements are expected to enhance operational efficiency and reduce delivery times, addressing the increasing demand for express delivery services.

In conclusion, the synergy of strong government support and technological innovation is driving Saudi Arabia's out-of-home delivery market toward sustained growth, aligning with the strategic objectives of Vision 2030.

Saudi Arabia Out Of Home (OOH) Delivery Market Trends

Expansion of Online Food and Grocery Delivery Services in Saudi Arabia

The food and grocery delivery sector in Saudi Arabia has demonstrated robust growth, driven by shifting consumer preferences and the rapid adoption of online shopping platforms. An industry report from 2024 indicates that the online food and grocery delivery market is expanding, fueled by rising demand for convenience, particularly in urban hubs such as Riyadh, Jeddah, and Dammam. The COVID-19 pandemic significantly accelerated this trend as consumers increasingly relied on digital channels for essential purchases.

In 2024, leading players such as Talabat and Nana Direct are scaling their operations to address the growing market demand. Talabat has established strategic partnerships with major grocery chains, including Carrefour and Al-Dawaa Pharmacies, to enhance its platform offerings with an expanded range of grocery products and pharmaceuticals. Similarly, Nana Direct has strengthened its footprint in secondary cities, targeting previously underserved markets and ensuring its deliveries encompass both groceries and household items.

Technological advancements are a critical driver of this expansion, with companies investing in automation and artificial intelligence (AI) to enhance delivery efficiency. Carrefour, for instance, leverages AI to optimize inventory management and reduce delivery times in key urban centers. These innovations aim to deliver faster, more reliable services to customers while simultaneously lowering operational costs for delivery platforms.

The Saudi government’s Vision 2030 initiative has been instrumental in fostering growth in the e-commerce and logistics sectors. By investing in infrastructure development, such as the expansion of 5G networks, the government is creating a supportive ecosystem for digital retail and delivery services, particularly in the food and grocery delivery market.

Growth in E-commerce and Retail Delivery Services in Saudi Arabia

Saudi Arabia's e-commerce and retail delivery services sector is witnessing significant expansion, driven by increasing internet penetration, a youthful demographic, and shifting consumer preferences. An industry report projects the Saudi e-commerce market to reach USD 20.7 billion by the end of 2024, establishing it as one of the fastest-growing markets in the Middle East. This growth is primarily fueled by the rising adoption of online platforms for purchasing consumer electronics, apparel, and other goods.

In response to this market growth, leading players such as Amazon.sa and Noon have scaled up their delivery operations to enhance customer satisfaction. In 2024, Amazon.sa launched a new fulfillment center in Riyadh to optimize logistics and accelerate delivery times across the Kingdom. This initiative aligns with Amazon’s broader investment strategy to address the increasing demand for efficient and reliable delivery services. Similarly, Noon has strengthened its logistics infrastructure by introducing same-day delivery options in major urban centers.

Local logistics providers are also capitalizing on this growth by investing in advanced delivery solutions. Companies like Zajil Express and SMSA Express have expanded their delivery networks, offering tailored services to e-commerce businesses requiring fast and dependable shipping for a diverse range of products. These firms are leveraging technologies such as real-time tracking and AI-based route optimization to improve delivery efficiency and enhance customer experience.

The Saudi government continues to drive digital transformation under Vision 2030, fostering a supportive regulatory framework for the growth of e-commerce and logistics. In March 2024, the Saudi Arabian E-commerce Council introduced new initiatives to strengthen the digital economy, including measures to facilitate cross-border e-commerce and enhance regulatory frameworks for online retail.

Saudi Arabia Out Of Home (OOH) Delivery Industry Overview

In Saudi Arabia's out-of-home delivery market, major players such as Almajdouie Logistics, Bahri, and DHL Express dominate key segments. Yet, numerous smaller, regional players actively compete for niche markets. These major companies, equipped with extensive networks, advanced technologies, and diversified service portfolios, command significant market shares across various industries, including e-commerce, food delivery, and logistics. However, local companies like NAQEL Express and SMSA Express intensify the competition, particularly in last-mile delivery services.

Global giants like Aramex and DHL harness their international expertise to uphold their dominance. In contrast, smaller firms and startups are seizing opportunities, driven by regional demand and the Vision 2030 initiatives that champion local logistics solutions. This diverse delivery landscape—spanning food, groceries, and pharmaceuticals—has paved the way for smaller firms, resulting in a medium level of market concentration.

Saudi Arabia Out Of Home (OOH) Delivery Market Leaders

Saudi Arabia Out Of Home (OOH) Delivery Market News

• November 2024: Delivery Hero announced plans to sell a 15% stake in its Middle Eastern and North African business, Talabat, through an initial public offering (IPO) in Dubai, valuing the unit at USD 12.7 billion. Talabat generated USD 2.3 billion in revenue in 2023, and the IPO proceeds will support Delivery Hero's debt management strategy.
• September 2024: Chinese tech giant Meituan launched its food delivery platform, KeeTa, in Riyadh, Saudi Arabia. During its initial phase, KeeTa offered free deliveries and discounts to attract customers. Meituan announced plans to capture up to 80% of the Saudi Arabian food delivery market by 2025.