Trend of E-Commerce in Saudi Arabia

Kingdom of Saudi Arabia: -

This oil giant desert country promises a lot of growth and productive potential in the e-commerce industry. Primarily dependant on oil exports, Saudi Arabia realized the need for diversification in the country when the world witnessed a sharp fall in global oil prices. Since then the country’s economic and business experts set down to develop and grow the tourism sector, telecommunication sector, health care, IT industry and gas exploration.

Commercial Environment of Saudi Arabia: -

Saudi Arabian economy encourages entrepreneurship and business endeavors through its policies and regulations. However, there is strict accountability in the country as far as following the laws is concerned. There is zero tolerance in the country for corruption and disobeying the law. In Saudi Arabia no one is above the rule of law so everyone has to abide by them. There is also a lot of concern for the promotion of good social and moral values as a result of which censorship law governing the internet is extremely strict. Working in Saudi Arabia you must not offend their social and moral values hence any website content pertaining to alcohol, gambling or even terrorism is strictly banned. People of Saudi Arabia like to engage in healthy and detailed discussions before they enter into official agreements. So they like to hold meetings to decide mutually on important matters. It must be noted, however, that the meeting timings must not coincide with prayer timings as Saudi Arabian people are very particular about their prayer timings.

The trend of E-commerce in Saudi Arabia: -

Saudi Arabia ranks among the top Middle Eastern countries where internet penetration is extremely high. More than 8 million people in Saudi Arabia have Facebook account while Saudi people account for about 90 million YouTube views in a single day. Google, Facebook, Twitter, and Instagram are among the top websites in the country. Ecommerce is extremely prevalent and growing at a stable rate in the country. Haraj, Aliexpress, and Souq are some of the popular e-commerce websites in Saudi Arabia.  The value of revenue received from Ecommerce reached a staggering level of more than $9 million from $5 million in 2014 indicating positive growth trend.

Opportunities in Ecommerce sector in Saudi Arabia: -

Ecommerce is a growing sector in Saudi Arabia hence poses a lot of opportunities in the country. The government is making efforts to ensure consumer confidence such as making online payments secure. Research surveys indicate the fondness of Saudi Arabian people towards making online purchases and engaging in online shopping experience.

Challenges in Ecommerce sector in Saudi Arabia: -

In spite of a growing sector, the E-commerce industry poses a lot of challenges to those who are interested in thriving in the industry. This is mainly because the industry at the present is at its infancy stage. This means there is a lack of proper business legislation and procedures required for various purposes for instance even registration of the business.

Future of Ecommerce in Saudi Arabia: -

Given the current rising trend, online marketing Saudi Arabia. The market holds a promising future in the E-commerce sector. People have started to engage in online shopping at an increased rate. The ease of shopping from home or anywhere makes online shopping attractive. However, people have reported that they faced problems in issues such as delays in delivery, high delivery charges and lack of trust in the vendor as issues that deter them from making online purchases. If construction work is done to improve the infrastructure and make the purchase process smooth and low in cost, the decrease in cost can be transferred to a consumer in the form of the lower delivery fee and motivate them to make online purchases.

Hence the trend of e-commerce in Saudi Arabia indicates the country has a lot of potential for growth and prosperity in the sector