RIYADH: Online shoppers in Saudi Arabia are increasingly switching from international platforms to local platforms and businesses.
According to Urdu News, Saudi Arabia’s retail sector is keeping a close eye on its e-commerce market as 74 percent of online shoppers in the kingdom are expected to shift from global to local platforms.
Leading global management consulting firm Kearney and Saudi consulting company Makatfa said in their recent report that local and hybrid players are making strong headway against their international counterparts from China, the Gulf Cooperation Council, Europe and the US.
The report said that the kingdom’s e-commerce market, worth 19.3 billion riyals, is 6 percent of the total 347.2 billion riyals retail market and is expected to grow to 34.7 billion riyals to reach 7.5 percent of the total retail market by 2026. .
A scalable e-commerce ecosystem will pave the way for innovation, job creation and private sector growth in line with the Kingdom’s Vision 2030 objectives.
Kearney Middle East Partner Muhammad Muthi said that the evolving e-commerce ecosystem empowers citizens to use innovative digital payment options in line with government initiatives under Vision 2030 to leverage private sector capital to grow the sector. Work can be guided.
For example, increasing cashless transactions and expanding the geographic coverage of e-commerce beyond the country’s major cities.
He added that the growth of local and hybrid e-commerce players will help protect the interests of consumers and promote local investment along with employment opportunities.
Cross-border online shopping is expected to generate lower revenues as local and hybrid companies gain traction, the report said.
Cross-border online shopping will decrease from 59 percent of all e-commerce revenues in 2021 to 49 percent by 2026.
According to the report, more support should be provided to create a level playing field for all e-commerce participants, protect consumer interests and encourage domestic investment.
“This is a strong sign that local e-commerce businesses are gaining more traction in the market. We must ensure that these businesses are supported by cross-border accounts,” said Waleed Al Saud, CEO of Makatfa.
Limits on import volumes can be introduced and local standards can be mandated for cross-border players, he added, if we want to create a level playing field for all e-commerce players. Need to pay attention.
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