You must be aware that e-commerce growing all over the world and while the US saw its peak in e-commerce growth few years back, we are now seeing other parts of the world catching up to the growth of US and even the UK in terms of e-commerce expansion. We have seen that as more and more people start to come online, the use of internet for online shopping will also increase as a result. You must have also seen a report where it was revealed that almost 100% of the population in Saudi Arabia now has an internet connection which means that everyone is connected to one another in the Middle Eastern country. It is revealed that Saudi Arabia’s e-commerce market grew by 32% year-on-year in the first quarter of 2023 which is extremely good news for the e-commerce owners in the market. “According to the Ministry of Commerce’s business bulletin, Riyadh issued the most commercial registers at 13,195, followed by Makkah with 8,605, and the Eastern Region with 5,294”, Reuters reports.
In the report, it is mentioned that “The Saudi e-commerce system supports entrepreneurs willing to transition from regular trade to e-commerce through entities that offer electronic payment, digital marketing, and technical solutions services. These entities also provide services related to electronic markets, logistical solutions, and platforms for developing electronic stores. The Saudi E-Commerce Council of the Ministry of Commerce aims to strengthen the reliability of e-commerce, boost its contributions to the national economy, and stimulate and develop e-commerce activities in the Kingdom”. Also, the report mentions that “The number of commercial registers issued during this period has reached 4,093, compared to 3,499 in Q1 2022”.
Basically, commercial registers are those who have established their e-commerce business in Saudi Arabia during that period and that number also grew by more than 500 annually which is a good sign that competition is heating up. Also worth noting is the fact that Saudi Arabia is one of the “top 10 growing countries in the e-commerce field, with a growth rate of 17 percent in Q1 2023, the Kingdom recognizes the importance of e-commerce in enhancing the national economy”. Having said that, Oil is still the main revenue asset for the Kingdom even today.
