How to Open an Online Store in Saudi Arabia for Expats – Complete Guide 2025

Opening an online store in Saudi Arabia for residents and expats is becoming increasingly popular among entrepreneurs and foreign investors. With the Kingdom’s rapid digital transformation and strong government support for the e-commerce industry, non-Saudis now have a great opportunity to enter this booming market.

Before you begin, you must understand the legal, technical, and regulatory requirements that ensure your business starts off right. In this guide, we break down everything you need to know about the requirements for opening an online store in Saudi Arabia for non-Saudis in 2025.

Is E-commerce Legal for Foreigners in Saudi Arabia?

One of the most common questions is whether foreigners and expats are allowed to run an online business in Saudi Arabia. The answer is yes.

The Saudi e-commerce market is open to foreign investors and residents, operating under a structured legal framework that:

• Adheres to local commercial regulations.

• Protects consumer rights.

• Ensures fair competition in the marketplace.
  
   

To operate as a non-Saudi e-commerce business owner, you must meet certain conditions:

• Obtain a Commercial Registration (CR) from the Ministry of Commerce.

• Secure a foreign investment license from the Ministry of Investment before registering your CR.

• Ensure your business activity is permitted under the Foreign Investment Law.

• Provide a legal business address in Saudi Arabia.

• In some cases, appoint a Saudi partner as required by law.

Discover more: Stages of Creating a Website: Your Guide to Building a Successful Website in Saudi Arabia

Requirements for Opening an Online Store in Saudi Arabia for Non-Saudis

The requirements for starting an e-commerce store in Saudi Arabia for expats ensure that your business complies with regulations and operates smoothly. Here are the main steps:

1. Valid Residency Permit (Iqama)

You must hold a valid residency permit in Saudi Arabia. This legal status allows you to live and work in the Kingdom.

2. Commercial Registration via the Meras Platform

The Meras platform, operated by the Ministry of Commerce, is where you register your business. Before this, you must obtain a foreign investment license from the Ministry of Investment.

3. E-commerce Activity License

After registration, apply for an e-commerce license from the Ministry of Commerce to sell products or services online legally.

4. Registered Business Address in Saudi Arabia

Even if your store is 100% online, you must have a registered legal address for official documentation and communication.

5. Secure Payment Gateways Compliant with Saudi Standards

Offer safe and licensed payment methods, such as Mada, STC Pay, and Apple Pay, to ensure smooth and secure transactions.

6. Compliance with Saudi E-commerce Regulations

Your online store must:

• Disclose all business details clearly.

• Offer a transparent return and exchange policy.

• Protect customer data.

• Avoid selling prohibited or fraudulent products.
  
   

Additional Conditions for Foreign E-commerce Investors in Saudi Arabia

Foreigners opening an online store in Saudi Arabia must also:

• Hold a foreign investment license from the Ministry of Investment.

• Operate only in approved economic sectors.

• Register with the Chamber of Commerce.

• Have no commercial or legal violations.

• In some cases, have a Saudi sponsor or partner with at least 51% ownership.

Final Word: Launching Your E-commerce Business in Saudi Arabia

While the requirements for opening an online store in Saudi Arabia for expats are straightforward, they require careful attention to detail and compliance with official procedures.

By preparing a business plan that aligns with Saudi laws and seeking guidance from legal or business experts, you can successfully launch a compliant and profitable e-commerce business in one of the fastest-growing markets in the Middle East.

Need help with your Commercial Registration, investment license, or payment setup? Contact the Alexon team today for expert assistance.

Discover Also: Designing an Online Store Website: Your Ultimate Guide to Building an eCommerce Site in Saudi Arabia

Why Expats Must Comply with E-commerce Store Requirements in Saudi Arabia

Complying with the requirements for opening an online store in Saudi Arabia for expats is essential for any non-Saudi entrepreneur aiming to launch a digital business in the Kingdom. These conditions are not just administrative steps — they form the legal foundation of your store, ensuring long-term stability and sustainable growth in one of the fastest-growing e-commerce markets in the Middle East.

1. Compliance with Laws Protects You from Legal Penalties

Saudi Arabia enforces strict e-commerce regulations, such as the E-commerce Law issued in 2019, which aims to protect consumers and regulate the relationship between merchants and customers.
Failing to comply may result in:

• Fines of up to 1 million SAR.

• Temporary or permanent closure of your store by regulatory authorities like SDAIA.

2. Building Customer Trust

Following the requirements for non-Saudi online store owners is not just about legal paperwork — it’s about protecting customer rights. This includes:

• Clear refund and return policies.

• Transparent product listings.

• Professional customer service.
  Such practices build credibility, encourage purchases, and foster long-term loyalty.

3. Facilitating Secure Financial Transactions

With the proper licenses, your store can integrate approved payment gateways in Saudi Arabia, such as:

• STC Pay

• Mada

• Apple Pay

• SADAD

Banks often require a Commercial Registration and a business bank account to enable smooth payment processing and withdrawals.

4. Access to Direct Government Support

Complying with all legal requirements allows you to benefit from Saudi Arabia’s extensive business support ecosystem, including:

• Ministry of Commerce (Meras and Ma3roof platforms)

• Zakat, Tax, and Customs Authority

• Communications, Space, and Technology Commission (CITC)

• SABER program for product quality and safety

• Monsha’at for SME support
  
   

5. Easier Integration with Shipping Companies

Licensed online stores enjoy priority with leading shipping companies in Saudi Arabia, such as DHL, Zajil, Aramex, and SMSA, ensuring faster delivery and better customer satisfaction.

Basic Requirements for Expats to Open an Online Store in Saudi Arabia

• Valid residency permit (Iqama)

• Commercial Registration via the Ministry of Commerce

• Foreign investment license (for non-Saudis)

• Store verification via Ma3roof

• SSL security certificate for customer data protection

• Compliance with official e-payment regulations

• CITC approval if your business offers digital services
   

Meeting these requirements not only makes your store legally compliant but also lays the foundation for a secure, scalable, and profitable e-commerce business in Saudi Arabia.

Advantages of Opening an Online Store in Saudi Arabia

The benefits of opening a licensed online store in Saudi Arabia go beyond legal compliance — they extend into strategic advantages in one of the most lucrative e-commerce markets in the region.

1. Large and Fast-Growing E-commerce Market

The Saudi e-commerce market is valued at over SAR 40 billion annually, with rapid growth fueled by increased internet penetration and digital shopping trends. Over 80% of the population shops online, presenting huge opportunities for new entrants.

2. Advanced Digital Infrastructure

Saudi Arabia offers a wide range of integrated payment systems to boost conversion rates, including:

• STC Pay

• Mada

• Apple Pay

• SADAD

• Tabby
  
   

• Credit cards & Cash on Delivery

3. Growing Online Shopping Culture

Saudi consumers are increasingly embracing e-commerce, particularly in:

• Fashion & electronics via Namshi, Jarir

• Groceries & consumer goods via Noon, Carrefour, HungerStation 

4. Integrated Shipping & Delivery Network

With shipping partners like Aramex, DHL, Zajil, SMSA, you can offer fast delivery across the Kingdom — including same-day or 24-hour delivery in major cities.

5. Government Support & Business Incentives

Saudi Arabia provides a pro-business environment through:

• Meras platform for online business registration

• Ma3roof platform for store verification

• Funding and incubation programs from Monsha’at

6. Gateway to GCC & Regional Markets

With its strategic location, Saudi Arabia serves as a hub for expanding into the Gulf and Arab markets through platforms like Amazon.sa, Noon, and Souq.com.

7. Flexible Business Operations & Lower Costs

An online store in Saudi Arabia does not require a physical shop — only a registered business address (physical, virtual, or home-based). This reduces operational costs and allows remote management via Zid, Shopify, or WooCommerce.

8. Access to AI & Advanced Tech Tools

The Saudi market embraces cutting-edge digital tools, such as:

• ChatGPT for customer support and analytics

• Automated marketing systems

• Customer data analytics tools

9. Clear Tax & Customs Policies

Saudi Arabia’s 15% VAT rate is stable and transparent, with customs exemptions on select products — making pricing and financial planning easier.

10. Long-Term Customer Loyalty

Licensed stores are perceived as more trustworthy, which makes it easier to partner with:

• Shipping companies

• Banks and payment providers

• Advertising platforms like Google and Snapchat
   

Discover more: A Guide to Creating a Product-Selling Website in KSA 2025 

Opening an online store in Saudi Arabia is no longer exclusive to Saudi citizens — it’s now possible for expats as well, thanks to clear requirements and procedures set by the authorities.
By complying with these regulations and following the official process, any entrepreneur or innovative thinker can enter the Saudi e-commerce market with confidence and legal stability.

If you’re ready to start, don’t waste time navigating technical or legal complexities on your own — let the experts guide you.

At Alexon, we specialize in website design and e-commerce development, building professional online stores optimized for growth and long-term success. Our services also include store management and digital marketing to ensure your brand starts strong in the competitive Saudi market.

Begin your e-commerce journey today — and let Alexon handle the rest.

Start your e-commerce journey today — and let Alexon handle the rest.