twenty one%! Saudi Arabia sees strong growth in e-commerce business registrations in Q2
Financial Associated Press, July 24th, with the change of consumption habits and payment habits of Saudi consumers, the local e-commerce business in Saudi Arabia has experienced unprecedented growth. According to the latest data released by the Saudi Ministry of Commerce, in the second quarter of 2023, the total number of registered e-commerce companies in Saudi Arabia reached 35,314, an increase of 21% compared with 29,007 e-commerce companies in the same period last year.
The announcement of the Ministry of Commerce further shows that the number of registered e-commerce companies in Riyadh, the capital of Saudi Arabia, ranks first in the country, reaching 14,026, accounting for nearly 40% of the total number of e-commerce companies in the country. It was followed by Mecca with 9,080 and Eastern Province with 5,699.
Saudi Arabia, as one of the top ten developing countries in the field of e-commerce, has an annual growth rate of more than 32%. In the context of Saudi Arabia’s strengthening of digital industry upgrading based on the national transformation plan, the local e-commerce market has grown rapidly and has become an important force to promote the development of the national economy.
The fast-growing e-commerce industry needs the support of adaptive logistics services, and the rapid growth of e-commerce directly drives the simultaneous improvement of the logistics industry. According to the announcement, the number of logistics companies registered in Saudi Arabia reached 4,288 in the second quarter of this year, an increase of 83% over the same period last year. Riyadh once again has an absolute advantage with 1,972 logistics companies, followed by Mecca and Eastern Province with 1,223 and 575 logistics companies respectively.
Meanwhile, the number of Saudi companies engaged in entertainment and creative activities reached 2,202 by the end of the second quarter of 2023, an increase of more than 24 percent year-on-year. In terms of quantity, Riyadh, Mecca and the Eastern Province still occupy the top three positions.
The Saudi Ministry of Commerce is promoting 10 laws and regulations, including the Consumer Protection Law and the Commercial Transactions Law, aimed at supporting entrepreneurs who want to move from conventional trade to e-commerce through institutions that provide services such as empowerment, e-payments, digital marketing, technology solutions, e-marketplaces, logistics solutions and the development of e-shop platforms.