How To Start Dropshipping In Saudi Arabia In 2025

Saudi Arabia presents a compelling opportunity for those looking to start a dropshipping business. As the largest economy in the Middle East, the country boasts a rapidly growing ecommerce market that is ripe for disruption. This is why dropshipping in Saudi Arabia has become one of the most attractive online business models for new entrepreneurs.

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One of the main benefits of dropshipping in Saudi Arabia is the country’s young, tech savvy population. Over 70 percent of Saudis are under the age of 30, and they actively embrace online shopping. In 2023, ecommerce sales in the Kingdom reached USD 11.2 billion. This trend is expected to grow, with projections showing USD 14.1 billion in 2024. The digital environment also makes it easy for those interested in Amazon dropshipping Saudi Arabia and Amazon dropshipping in Saudi Arabia.

Another factor supporting dropshipping in Saudi Arabia is the government’s strong push to diversify the economy. Initiatives such as Vision 2030 encourage entrepreneurship and business innovation. This creates a favorable regulatory landscape for those exploring opportunities like Shopify dropshipping in Saudi Arabia, as well as using dropshipping websites in Saudi Arabia.

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Finally, the logistics infrastructure in the Kingdom continues to improve, making it easier for dropshippers to manage fulfillment and delivery. With better transport networks and ecommerce focused logistics providers, new entrepreneurs can efficiently partner with dropshipping suppliers in Saudi Arabia or even look for the best dropshipping suppliers in Saudi Arabia to maximize business success.

This strong logistics network helps ensure that dropshippers can reliably ship products to customers throughout the Kingdom.

KSA Business Setup for Global ecommerce

Commercial Registration (CR) and ecommerce compliance

To trade legally from Saudi Arabia you must register your business with the Ministry of Commerce and obtain a Commercial Registration (CR). For online stores the Ministry has an official e-store registration process (Business Platform) and requires a registration certificate or a valid professional certificate and a commercial bank account to register a storefront.

Registering your CR and your e-store is the first step to opening banking and payment lines needed for global sales. Visit the Ministry of Commerce website to read more.

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Exporting from KSA: licences and practical requirements

If you plan to sell to customers outside Saudi Arabia, treat your activity as export. Exporting goods can require additional documentation depending on the product (customs export declarations, conformity or health approvals for restricted goods, etc.).

Many merchants operate on a standard CR for trading but must also ensure their activity codes (SIC/NACE equivalent in KSA) cover international sales and obtain any sector-specific permits (for example, food, cosmetics, medical devices require approvals). For formal confirmation and the latest ecommerce rules, consult the Ministry of Commerce business platform and, for product-specific export approvals, the relevant Saudi regulator.

Practical next step: get your CR and e-store registered via the Ministry of Commerce Business Platform (business.sa) and ask a local business consultant about export documentation for your product category.

Maroof – when it matters (and when it does not)

Maroof is a Saudi initiative used to verify and build trust with buyers inside the Kingdom. If you are targeting international customers, Maroof adds little value: it helps conversions for KSA shoppers but does not replace the international trust signals buyers expect (international payment badges, well-written English copy, global returns policy, and recognizable courier tracking). Use Maroof when you also want to sell inside KSA, but do not rely on it as a requirement for global ecommerce.

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Corporate tax: the important clarification (UAE vs KSA)

9% corporate tax on profits over AED 375,000 – that rule is for the United Arab Emirates, not Saudi Arabia. The UAE introduced a federal corporate tax with a 0% band up to AED 375,000 and 9% above that. If you had that number floating in your draft, it appears to be a cross-country mixup. (U.AE)

How corporate tax works in Saudi Arabia (short summary):

Saudi Arabia uses a different system. For most companies with non-GCC ownership, statutory corporate income tax applies (commonly referenced as 20% for taxable profits of non-Saudi/non-GCC investors), while Zakat (roughly 2.5%) applies for Saudi/GCC-owned taxable bases.

The rules depend on ownership structure and the nature of income; withholding tax and VAT also affect cross-border flows. Because tax treatment depends on ownership and the source of income, get local tax advice about profits generated from international sales and whether those profits are considered Saudi source or taxable in KSA. Review PwC Tax Summaries.

Actionable advice: Before you scale, have an independent tax advisor (or ZATCA-registered consultant) confirm how profits from overseas buyers will be taxed for your specific ownership and company structure. ZATCA (the Saudi tax authority) is the official source for Saudi tax rules. Visit the Zakat, Tax, and Customs Authority.

How to Accept International Payments in Saudi Arabia (deep dive)

This is the most important operational piece for selling to the USA, Europe and other Western markets.

Option A – KSA-based payment gateways with international reach

PayTabs and HyperPay are regional gateways widely used by merchants in Saudi Arabia and the broader MENA region. They can accept international credit cards and many support multi-currency checkout or card acceptance, with settlement into a Saudi bank account (settlement currencies and fees depend on the merchant agreement). Compare transaction fees, currency conversion margins, PCI compliance support, and settlement timing when you evaluate them.

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Pros

• Local onboarding, Arabic support, direct settlements to SAR accounts.
• Integration with local acquiring banks and MADA where needed.

Cons

• Currency conversion fees or limited multi-currency settlement options compared to large global processors.
• Some international card features (like US ACH refunds, or global payouts) are limited.

Option B – Global gateways (Stripe, Paddle, PayPal, Stripe Atlas route)

Stripe now publishes country availability and offers Stripe Atlas to help founders incorporate a US entity and activate Stripe on that US company. Historically, Stripe availability is country-by-country; if Stripe is not yet fully supported for Saudi-registered entities in your specific case, many merchants either (a) use Stripe through a foreign legal entity (via Stripe Atlas or local US company formation), or (b) pick a MENA gateway plus a secondary global processor for specific markets.

Check Stripe’s country requirements carefully: opening a Stripe account in another country normally requires a legal entity, tax ID, local bank account and phone.

Pros (of Stripe/Atlas approach)

Native support for many payment methods used by Western buyers, smooth multi-currency processing, clear developer APIs, charges in buyers’ local currencies, easier refunds and dispute handling in target markets.

Cons

Incorporation + banking for a US company adds costs, ongoing compliance and potentially different tax reporting responsibilities. For Saudi nationals this can mean managing two legal entities and tax filings in two jurisdictions. There are also reputational and KYC checks to pass for non-US owners. (Stripe)

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Practical comparison checklist

• When you evaluate a payments route, compare:
• Which cards and wallets are accepted (Visa, Mastercard, AmEx, Apple Pay).
• Multi-currency pricing and currency conversion fees.
• Settlement currency and settlement speed to your Saudi bank.
• Refunds, chargeback handling, and dispute management.
• Integration complexity with Shopify or your custom storefront.

Recommendation: Start with a reliable Saudi/Tier-1 regional gateway (PayTabs or HyperPay) to accept international cards while you test demand. If you scale fast in a Western market, consider a legal structure that allows you to add Stripe (or a US-registered payment entity) for best checkout UX and lower card-acceptance friction.

Shift from Local Logistics to Global Supply Chain Management

If your store targets Western customers, local KSA logistics alone will not be sufficient. Focus on a global fulfillment plan.

Recommended global shipping methods (pros and cons)

• ePacket – commonly used for small B2C parcels from Asia to the US/Europe: relatively low cost and tracking, typical transit 7–15 business days to the US, but service quality is mixed and tracking granularity can vary. Use it for low-value, low-expectation items. (Shopify)
• AliExpress Standard Shipping / Aliexpress Premium / seller-paid express – faster than standard post and better tracking; premium options reduce transit times but cost more. Good for a balance of price and tracking. (Do Dropshipping)
• Carrier express (DHL, FedEx, UPS) – best for predictable lead times and customer experience; more expensive but recommended for higher-value SKUs or when competing on delivery speed.
• Third-party logistics (3PL) and fulfillment centers in target markets – store inventory in a US/EU fulfillment center (FBA, ShipBob, local 3PL) to offer fast delivery and local returns. This requires inventory investment but dramatically improves conversion and reduces returns friction.

Recommendation: Use a two-track approach – low-cost direct shipping (ePacket/AliExpress Standard) for test orders, and move winners to fulfillment (US/EU 3PL or FBA) to reduce delivery times and boost conversion.