---
title: "Opening an online store in Saudi Arabia: full budget"
description: "A line-by-line first-year budget for an online store in Saudi Arabia: platform or custom build, gateway fees, registration, 15% VAT, delivery and ads."
url: https://kftechsolutions.dev/blog/online-store-cost-saudi-arabia
language: en
published: 2026-11-06
modified: 2026-11-06
author: Kirollos Fayez
site: "KF Tech Solutions — https://kftechsolutions.dev"
---

# Opening an online store in Saudi Arabia: full budget

A line-by-line first-year budget for an online store in Saudi Arabia: platform or custom build, gateway fees, registration, 15% VAT, delivery and ads.

Opening an online store in Saudi Arabia costs less to launch than most owners expect, and more to run. A realistic first-year budget has seven lines: the store itself (a platform subscription or a custom build), payment gateway fees on every order, registration on the Business Platform, VAT at 15% once you are registered, delivery and returns, marketing, and maintenance. The store is often the smallest of them; fees on every sale and the cost of winning each customer usually decide whether the year makes money.

Last checked: 6 November 2026

## The first-year budget, line by line

Use this table as a checklist. Fill in a fourth column with the quotes and pricing pages you collect, and the gaps in your plan show up quickly.

| Budget line | How it is charged | What to check before you commit |
|---|---|---|
| **Store platform or custom build** | A monthly or yearly plan, or a one-off build price | Which features sit on higher plans, and who owns the code and the customer data |
| **Payment gateway** | A percentage and/or a fixed fee per transaction, sometimes setup or monthly fees | Rates for mada, credit cards and BNPL, settlement time, refund fees |
| **Registration** | Business Platform registration, based on a commercial registration or a freelance certificate | Which one fits your activity, and the commercial bank account it needs |
| **VAT** | 15% on taxable sales once you are registered | Whether your sales cross SAR 375,000 (mandatory) or SAR 187,500 (voluntary) |
| **Delivery and returns** | Per shipment, often with extra charges for cash on delivery and returns | Coverage outside the big cities, and who pays for failed deliveries |
| **Marketing** | Ad spend, plus photos and content | The cost of one sale, not the cost of one click |
| **Maintenance** | Platform renewals and paid apps, or a support agreement | Who fixes it when a payment or delivery connection breaks |

Two lines are set by law and are the same for everyone: VAT and the registration rules. Everything else depends on your choices, which is why two stores selling the same product can end the year with very different budgets.

## Platform subscription or custom build

This is the line most owners start with, and the one they spend the most time on. There are two routes.

**A hosted platform** such as Salla, Zid or Shopify gives you a store for a monthly or yearly fee. You get themes, a cart, a control panel and ready-made connections to payment and shipping companies. The real cost is rarely the entry plan. It is the plan you need for the features you actually use, the paid apps for things like reviews or loyalty points, and any commission the platform takes on sales. Plans and fees change often, so read each platform's own pricing page on the day you decide, and note whether the prices include VAT. Our comparison of [Salla, Zid and Shopify](https://kftechsolutions.dev/blog/salla-vs-zid-vs-shopify) goes through the differences.

**A custom store** costs more up front and less each month. You pay for design and development once, then for hosting and support. It makes sense when your products or pricing don't fit a template: made-to-order items, wholesale prices for some customers, bookings, subscriptions, or a store that must share stock with your shop's cashier system. It also means the code and the customer data stay with you. Our guide to [Shopify or a custom online store](https://kftechsolutions.dev/blog/shopify-vs-custom-online-store-egypt) was written for Egypt, but the trade-offs are the same in Saudi Arabia.

A simple rule: start on a platform while you are testing whether a product sells, and build custom when the platform's limits start costing you sales or staff time.

## Payment gateway fees

Customers in Saudi Arabia expect to pay with mada, the national payment network owned by the Saudi Central Bank (SAMA). It supports Apple Pay, mada Pay, Samsung Pay and Google Pay, and online payments through 3-D Secure. Many stores also offer buy-now-pay-later: SAMA licensed Tamara Finance for BNPL in March 2025 and Tabby Finance in November 2025.

You reach these methods through a payment gateway. Tap describes itself as a payment institution licensed by the Saudi Central Bank and supports mada, Apple Pay, Tabby and Tamara. PayTabs lists mada, STC Pay, Apple Pay, Tabby and Tamara. Telr covers Saudi Arabia and the UAE, with mada, Apple Pay and Tabby. Our guide to [payment gateways in Saudi Arabia](https://kftechsolutions.dev/blog/payment-gateways-saudi-arabia) compares them in more detail.

Gateway pricing is where small percentages add up. When you compare offers, ask each provider for:

- The rate per transaction for mada, for local credit cards and for international cards, since they are usually different.
- Any fixed fee per transaction on top of the percentage.
- Setup fees, monthly fees and minimum charges.
- The merchant fee for BNPL, which the store pays, not the customer.
- How many days it takes for the money to reach your bank account.
- What a refund or a chargeback costs you.

Then multiply by the number of orders you expect and your average basket. A fee that looks small on one order becomes a real line in the budget across a year, and it is often larger than the platform subscription.

## Registration: the Business Platform and the E-Commerce Law

Online stores register on the Business Platform (business.sa), run by the Saudi Business Center, which replaced Maroof. To register you need a commercial registration or a valid freelance certificate, plus a commercial bank account. Leave time to set these up before launch, because payment gateways usually ask for the same documents.

The E-Commerce Law (Royal Decree M/126 of 2019) also shapes what the store must show:

- **Article 6:** the store's name or identifier, its contact details and its commercial registration.
- **Article 7:** the contract terms, which in practice means clear pages for prices, payment, delivery and returns.
- **Article 18:** penalties range from a warning to a fine of up to SAR 1 million, suspension, or blocking of the store.

These pages are cheap to build, but someone has to write them, so put them in the plan instead of leaving them for launch week. This is general information, not legal advice; check your own case with an adviser.

## VAT and e-invoicing

VAT in Saudi Arabia is 15%, in force since 1 July 2020. Registration is mandatory once your taxable sales exceed SAR 375,000 over 12 months, and voluntary from SAR 187,500. Whether your displayed prices include VAT or you add it at checkout changes your margin, so decide this before you set prices.

If you are VAT-registered, e-invoicing applies as well. Since 2023 ZATCA has moved VAT-registered businesses onto Phase 2, integration with its FATOORA platform, in waves. Wave 25, covering VAT-able revenue above SAR 187,500 in any year from 2022 to 2025, must integrate with FATOORA by 1 February 2027. Ask your platform or developer how its invoices meet Phase 2. For simplified (B2C) invoices, the usual case for a store, each invoice must be stamped, carry a QR code and be reported to FATOORA within 24 hours.

Two more points apply if you hire a developer outside Saudi Arabia:

- **Reverse charge.** A VAT-registered business that buys services from a non-resident supplier accounts for the VAT itself.
- **Withholding tax.** Payments to non-residents for technical services, which include software development and maintenance, may be subject to 5% withholding tax. Agree in the contract whether the price includes it.

This is general tax information, not advice. Check your position with a tax adviser.

## Delivery, marketing and maintenance

**Delivery** is charged per shipment, and the price depends on weight, distance and the courier. Get written quotes from more than one company and ask about three things that are easy to forget: the extra charge for cash on delivery, the cost of returns, and who pays when a delivery fails. If you sell outside the main cities, check coverage first. Our article on [payments and delivery for an online store in Egypt](https://kftechsolutions.dev/blog/online-store-egypt-payments-and-delivery) lists what tends to break in practice, and most of it applies here too.

**Marketing** is often the largest line. Budget it as the cost of one sale, not the cost of one click: ad spend plus product photos and content, divided by the orders it brings. Ads that send people to a slow or confusing page waste money, which is the subject of our guide to [what a landing page fixes](https://kftechsolutions.dev/blog/landing-page-for-ads-egypt). Google handled 96.1% of searches in Saudi Arabia in October 2026, so search deserves a share of the budget alongside social media ads.

**Maintenance** covers the domain, hosting or the platform renewal, security updates, paid apps, and someone to call when a gateway or a courier changes its connection. On a platform this is mostly subscriptions; on a custom store it is a support agreement. Either way, put a monthly figure in the budget from day one, not after the first problem.

## Where KF Tech Solutions fits

We build custom online stores and web apps in Arabic and English, with right-to-left layouts planned from the start: a product catalogue, a cart, a control panel to manage products and orders, SEO basics and analytics, connected to the payment and delivery providers you choose. If a hosted platform suits your stage better, we will tell you. We work with businesses in Egypt and the Gulf, remotely from Cairo. Projects start from $200 (about SAR 750 / AED 735); the final price depends on scope, with a fixed written quote after a free call. Read more about our [website and online store development](https://kftechsolutions.dev/services/web-development) and about [working with clients in Saudi Arabia](https://kftechsolutions.dev/saudi-arabia).

## Common questions

### What is the cheapest way to open an online store in Saudi Arabia?

A hosted platform on its entry plan keeps the launch cost low. The running costs, meaning gateway fees, delivery and ads, are there whichever route you choose, so budget for those first.

### Do I need a commercial registration to sell online?

To register on the Business Platform you need either a commercial registration or a valid freelance certificate, plus a commercial bank account. Which one fits depends on your activity.

### Do I have to charge VAT from the first sale?

Only once you are VAT-registered. Registration becomes mandatory when taxable sales exceed SAR 375,000 over 12 months, and you may register voluntarily from SAR 187,500. Check your position with a tax adviser.

### Should I build a custom store or use Salla or Zid?

Start on a platform while you are still testing demand. A custom store pays off when your products, pricing or stock don't fit a template, or when apps and commissions start to cost more each year than a build would.

### How long does it take to launch?

A store on a platform can go live soon after products, photos and policies are ready. A custom store takes longer, depending on its features. Registration and gateway approval can run alongside the build, so start them early.

Send us your product list and the number of orders you expect, and we will help you turn this table into real numbers. [Book a free call](https://kftechsolutions.dev/book) or [contact us](https://kftechsolutions.dev/contact).

## Sources

- [ZATCA: VAT registration thresholds (Guideline for Regional Headquarters)](https://zatca.gov.sa/en/HelpCenter/guidelines/Documents/Guideline-for-Regional-Headquarters-in-KSA.pdf)
- [PwC Tax Summaries: Saudi Arabia, other taxes (VAT rate)](https://taxsummaries.pwc.com/saudi-arabia/corporate/other-taxes)
- [ZATCA: e-invoicing roll-out phases](https://zatca.gov.sa/en/E-Invoicing/Introduction/Pages/Roll-out-phases.aspx)
- [ZATCA: Wave 25 announcement](https://zatca.gov.sa/en/MediaCenter/News/Pages/Wave25-E-invoicing.aspx)
- [ZATCA: E-Invoicing Detailed Guideline](https://zatca.gov.sa/en/E-Invoicing/Introduction/Guidelines/Documents/E-Invoicing_Detailed__Guideline.pdf)
- [ZATCA: Guideline on Imports and Exports under VAT](https://zatca.gov.sa/en/HelpCenter/guidelines/Documents/Guideline-on-Imports-and-Exports-under-VAT-Provision.pdf)
- [ZATCA: General Guideline for Withholding Tax](https://zatca.gov.sa/en/HelpCenter/guidelines/Documents/General-Guideline-for-Withholding-Tax-In-accordance-with-the-provisions-of-the-Income-Tax-Law-and-its-Implementing-Regulations.pdf)
- [Ministry of Commerce: online stores move from Maroof to the Business Platform](https://mc.gov.sa/en/mediacenter/News/Pages/29-03-23-02.aspx)
- [E-Commerce Law, official translation](https://misa.gov.sa/app/uploads/2025/07/E-Commerce-Law.pdf)
- [SAMA: mada](https://www.sama.gov.sa/en-US/payment/Pages/mada.aspx)
- [SAMA: Tamara Finance licence](https://www.sama.gov.sa/en-US/MediaCenter/News/Pages/news-1079.aspx)
- [SAMA: Tabby Finance licence](https://www.sama.gov.sa/en-us/mediacenter/news/pages/news-1116.aspx)
- [Tap](https://www.tap.company/en-sa)
- [PayTabs](https://www.paytabs.com/en/)
- [Telr](https://telr.com/)
- [StatCounter: search engine market share in Saudi Arabia](https://gs.statcounter.com/search-engine-market-share/all/saudi-arabia)

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KF Tech Solutions is a software studio in Cairo, Egypt, founded by Kirollos Fayez in 2020; its only website is kftechsolutions.dev. It is not affiliated with KFTECH Software Solutions (kftechsols.com).