Saudi Arabia’s Ministry of Commerce has reported a significant 17.47% increase in the issuance of existing commercial records for e-commerce in the Kingdom.
According to its Q2 2024 Business Sector Bulletin, by the end of the second quarter, 40,697 records were issued, up from 34,645 in the same period of 2023.
Riyadh City led Saudi Arabia’s regions in issuing e-commerce records with 16,535, followed by Makkah with 10,325, the Eastern Province with 6,525, Madinah with 1,938, and Al-Qassim with 1,326.
Saudi Arabia’s e-commerce market is poised for rapid expansion, with online revenue projected to grow at an annual rate of 13.5% through 2027, outpacing the global average growth of 11.2%. In fact, this growth trajectory is also positioning the country to surpass the UAE, traditionally seen as a more mature e-commerce hub in the region.
The Kingdom’s ambitious Vision 2030 strategy plays a pivotal role, aiming to transform the economy by bolstering sectors like digital commerce and logistics. As part of this vision, Saudi Arabia is aiming to enhance its status as a global and regional logistics hub, prioritising investment in infrastructure and boosting shipping volumes.
Additioanlly, Vision 2030 puts an emphasis on the expansion of non-oil sectors, including local manufacturing and exports, leveraging e-commerce to empower small and medium-sized enterprises (SMEs). Currently, SMEs contribute about 20% to Saudi GDP, a figure Vision 2030 seeks to elevate, aligning with global norms where SMEs often generate up to 70% of GDP in advanced economies.
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