Noha Gad
The e-commerce landscape in Saudi Arabia is experiencing unprecedented growth, solidifying the Kingdom's position as the largest and most dynamic digital marketplace in the region. According to a recent report from BMI, a FitchSolutions company, household spending in the Kingdom will grow by a real 3.3% year-on-year (YoY) in 2026, a slight decline from 3.4% in 2025. The report anticipated household spending growth to accelerate slightly to 3.7% YoY in 2027, taking real spending to 39.4% above pre-COVID-19 pandemic levels. This growth is driven by digital acceleration that reshapes consumer expectations, shifting the focus from mere access to products towards a demand for efficiency, transparency, reliability, and a superior overall user experience.
Within this dynamic and competitive landscape, Kanaa, a Saudi-born digital e-commerce platform, officially launched in the Kingdom in April 2026, introducing a curated commerce model designed to simplify product discovery while maintaining high standards of quality and trust.
Sharikat Mubasher held an exclusive interview with Kartik Bhatt, CEO of Kanaa, to dive deep into the company’s business model, strategy, and technology, as well as its ambitions to expand and strengthen its presence across the Kingdom.
Kanaa officially launched in Saudi Arabia in April, introducing a curated commerce model to simplify product discovery while maintaining quality and trust. Can you tell us more about this model and what sets Kanaa apart from established marketplaces and specialty omni-retailers?
Saudi Arabia's e-commerce market has matured significantly over the past few years. Customers already have access to millions of products, fast delivery, and seamless payment options. However, all of that came with a lot of noise from endless choices, inconsistent content, bad reviews, and unpredictable service. This has made most customers insecure about whether they are making the right purchasing decision or not. They may feel that they are not getting the best deal, service, or product.
That is the thinking behind Kanaa's curated commerce model. We focus on offering the right products, presented with reliable information and backed by a consistent customer experience. Every product is carefully selected, supported with quality content and held to the same standards for pricing, fulfilment, and service.
Our model combines our own retail assortment, direct partnerships with leading brands, exclusive product collections, and a carefully managed marketplace. Each plays a specific role, but together they create a shopping experience customers can trust.
Today, our focus is on families, children, youth, and modern Saudi consumers across toys, books, gaming, hobbies, and lifestyle categories, with additional categories planned as we continue to grow.
Since launching in November 2025, we have achieved 44-fold growth in sales and a 30-fold increase in order volume. Those results confirm that we are solving a real customer need. Customers are not just looking for more products. They also need real confidence in what they are buying and where they are buying it from.
How does Kanaa plan to implement its strategy that is centered on curated selection, operational efficiency, and customer trust?
As I mentioned earlier, curation is only one part of the equation. Delivering a great customer experience depends just as much on how consistently you execute behind the scenes.
We start with the assortment itself, making sure every category has a clear purpose: everyday essentials, seasonal collections, exclusive partnerships, or marketplace offerings. Every category earns its place, and we are careful not to let the catalogue grow just for the sake of it.
Operational excellence is equally important. Customers remember whether an item was in stock, whether it arrived on time, and how quickly an issue was resolved. That is why we have invested heavily in inventory accuracy, delivery performance, returns management, and customer support. Today, we provide same-day delivery in Jeddah, are expanding that capability in Riyadh, and consistently deliver more than 98% of orders on time.
Technology underpins every stage of that experience, from search and stock visibility to personalized recommendations and a seamless checkout process. At the same time, we continue to build customer trust through transparent product information, clear policies, and responsive service.
Sales growth and traffic matter, but repeat purchases, customer loyalty, and our ability to build lasting relationships are what tell us this is actually working.
Does Kanaa integrate AI and machine learning into its business model — for search and discovery, fraud detection, pricing optimization, or logistics planning?
Absolutely. AI is already an important part of how we operate, especially in helping customers discover the right products more conveniently.
For example, a parent looking for a suitable gift or a teenager searching for gaming accessories rarely use precise search keywords. It is mostly broad categories, brand variations, use case-related keywords, etc. AI allows us to better understand customer intent and provide recommendations that feel more relevant and personalized, much like the guidance customers receive from an experienced sales advisor in a physical store.
Behind the scenes, we are also applying AI across demand forecasting, fraud detection, catalogue quality management and returns analysis. As the business grows, we will continue expanding its use across pricing optimization and logistics planning.
The real opportunity is the insights that come with connecting such capabilities. When demand shifts around a product, season, or occasion, AI can help us respond more quickly by improving inventory planning, product content, and stock allocation. That is what supports our next phase of growth, including marketplace expansion, new strategic partnerships, and our planned entry into the UAE.
A recent study conducted by Visa showed that 91% of consumers in Saudi Arabia embrace AI as part of their shopping journey. In your opinion, how do AI technologies revolutionise the shopping experience in the Kingdom?
These findings mirror current market behavior. Saudi Arabia is home to some of the most tech-forward shoppers globally, and they have already outgrown traditional e-commerce. They expect platforms to understand context and intent, bringing a level of personalization that standard catalog search simply cannot deliver
AI helps deliver that in a few ways. It simplifies product discovery by understanding what customers are actually looking for rather than relying only on keywords. It also personalizes the experience, recognizing that someone shopping for children's toys has very different needs from someone looking for gaming products or gifts. Just as importantly, AI strengthens the experience in ways customers may not always notice directly. It improves product information, helps detect fraud more effectively, and enables faster customer service, all of which contribute to a smoother, more reliable shopping journey.
For years, online shopping missed something obvious: that helpful salesperson in the store who actually gets what you are looking for. AI finally lets us bring that human touch online, in both Arabic and English, at scale. We are not interested in AI hype for the sake of it; for us at Kanaa, it is just about making shopping easier, faster, and genuinely helpful.
What strategic partnerships are you pursuing to accelerate growth and enhance customer experience?
No platform succeeds in isolation. Our model is built entirely on smart partnerships. We deliberately chose not to build a bloated, open marketplace with lots of unverified sellers. We curate our brand and retail partners strictly because customers deserve reliable quality and pricing, not endless scrolling through questionable listings.
We take the same approach across the board. We are partnering with AI leaders to strengthen discovery, personalization, and fraud prevention capabilities that would take years to build in-house at the same quality. Logistics and last-mile partners are just as critical as merchandising ones. A platform can win a customer through marketing, but it keeps them through delivery and service.
We are also building relationships beyond conventional commerce, with schools, malls, creators and family-focused communities, because category education and gifting inspiration matter almost as much as the transaction itself.
What are Kanaa's plans to expand its footprint within and beyond Saudi Arabia, driven by its mission to shape the next phase of e-commerce growth? What regional or international markets do you target next?
Our priority right now is the Kingdom. We want real depth here before we look anywhere else, which means strengthening our category leadership and continuing to invest in technology, fulfillment, and data.
We still see significant demand across Saudi families, youth, and digitally native consumers who want a platform that understands their language, occasions, and service expectations.
Looking beyond the Kingdom, the GCC is the natural next step. UAE, Kuwait, Qatar, Bahrain, and Oman all share the digital adoption and purchasing power that fit our model, and our current plan is to enter the UAE in 2026.
We would rather take a Saudi-born platform to the region once we have proven it here than expand early and lose what makes Kanaa trusted in the first place.
As a seasoned leader with more than 20 years of experience scaling large-format retail and e-commerce businesses, how do you assess Saudi Arabia's e-commerce sector? What does the sector need over the coming years to continue growing?
Saudi Arabia's e-commerce sector has made remarkable progress over the past decade. The industry successfully addressed the fundamentals by expanding product availability, strengthening logistics, and giving consumers the confidence to shop online. That created strong and sustained growth across the market. I have watched a few markets go through this same shift, and Saudi Arabia is moving through it faster than most.
The next phase is really about the quality of the customer experience. Promotions and discounts can generate short-term sales, but long-term success depends on service reliability, customer retention, strong category expertise, and sustainable growth.
I also believe the industry has an opportunity to invest more in merchandise planning and product content, so customers get relevant assortments, accurate information, and a better overall shopping experience.
Finally, the sector needs to become even more locally relevant. That means reflecting Saudi shopping habits, family occasions, gifting traditions, and Arabic-first customer experiences in a more meaningful way. That is the shift I would tell any new entrant to prepare for.
Ultimately, I believe the companies that succeed over the coming years will be those that consistently earn customer trust through every interaction rather than those that offer the largest catalogue.