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Saudi E-Commerce: Continuous Growth Fuels Sustainable Development

The ‘23rd Biban Forum’ recently held in Riyadh spotlighted e-commerce in the Middle East (Asharq Al-Awsat)
The ‘23rd Biban Forum’ recently held in Riyadh spotlighted e-commerce in the Middle East (Asharq Al-Awsat)
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Saudi E-Commerce: Continuous Growth Fuels Sustainable Development

The ‘23rd Biban Forum’ recently held in Riyadh spotlighted e-commerce in the Middle East (Asharq Al-Awsat)
The ‘23rd Biban Forum’ recently held in Riyadh spotlighted e-commerce in the Middle East (Asharq Al-Awsat)

As more and more Saudis are turning to online buying, the Kingdom is seeing unprecedented growth in e-commerce businesses, with the total number of registered firms in the country touching 35,314 in the second quarter of 2023.

This growth has paved the way for initiatives organized by the General Authority for Small and Medium-sized Enterprises (Monshaat), particularly in the realm of e-commerce.

These initiatives are aimed at enhancing and fostering the e-commerce sector in the region. The goal is also to empower entrepreneurs to access all the services and facilities provided by relevant authorities.

The landscape of e-commerce in Saudi Arabia has witnessed remarkable evolution and rapid strides in recent years, transforming it into one of the fastest-growing markets in the Middle East.

This transformation can be attributed to the increasing number of online shoppers and the growth of digital infrastructure. Improvements in internet speed and electronic security have also played a significant role.

Aligned with the goals of the Kingdom’s national transformation plan, “Vision 2030,” which seeks comprehensive digital transformation across various sectors, Saudi Arabia places significant emphasis on e-commerce as a key pillar of its economic growth.

With a multitude of e-commerce platforms, each offering a diverse range of services and features tailored to the needs of various businesses, this sector continues to sustain steady growth.

Expectations for further development and prosperity in the future remain high, thanks to government support and technological advancements.

Establishing an online store presents a promising opportunity for entrepreneurs, startups, and small to medium-sized enterprises to reach a broad customer base within and beyond the Kingdom.

This is due to the financial incentives and investment facilitations that are readily available.

The Saudi e-commerce market currently ranks 27th globally, boasting over 28.4 million users, with expectations that this number will reach 34.5 million by 2025.

Furthermore, the Kingdom commands a significant share of 45% in the e-commerce market within the Middle East and the Arab world, solidifying its role as a vital element in achieving economic sustainability.

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US Job Growth Surges in September, Unemployment Rate Falls to 4.1%

A woman enters a store next to a sign advertising job openings at Times Square in New York City, New York, US, August 6, 2021. REUTERS/Eduardo Munoz/File Photo
A woman enters a store next to a sign advertising job openings at Times Square in New York City, New York, US, August 6, 2021. REUTERS/Eduardo Munoz/File Photo
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US Job Growth Surges in September, Unemployment Rate Falls to 4.1%

A woman enters a store next to a sign advertising job openings at Times Square in New York City, New York, US, August 6, 2021. REUTERS/Eduardo Munoz/File Photo
A woman enters a store next to a sign advertising job openings at Times Square in New York City, New York, US, August 6, 2021. REUTERS/Eduardo Munoz/File Photo

US job growth accelerated in September and the unemployment slipped to 4.1%, further reducing the need for the Federal Reserve to maintain large interest rate cuts at its remaining two meetings this year.
Nonfarm payrolls increased by 254,000 jobs last month after rising by an upwardly revised 159,000 in August, the Labor Department's Bureau of Labor Statistics said in its closely watched employment report on Friday.
Economists polled by Reuters had forecast payrolls rising by 140,000 positions after advancing by a previously reported 142,000 in August.
The initial payrolls count for August has typically been revised higher over the past decade. Estimates for September's job gains ranged from 70,000 to 220,000.
The US labor market slowdown is being driven by tepid hiring against the backdrop of increased labor supply stemming mostly from a rise in immigration. Layoffs have remained low, which is underpinning the economy through solid consumer spending.
Average hourly earnings rose 0.4% after gaining 0.5% in August. Wages increased 4% year-on-year after climbing 3.9% in August.
The US unemployment rate dropped from 4.2% in August. It has jumped from 3.4% in April 2023, in part boosted by the 16-24 age cohort and rise in temporary layoffs during the annual automobile plant shutdowns in July.
The US Federal Reserve's policy setting committee kicked off its policy easing cycle with an unusually large half-percentage-point rate cut last month and Fed Chair Jerome Powell emphasized growing concerns over the health of the labor market.
While the labor market has taken a step back, annual benchmark revisions to national accounts data last week showed the economy in a much better shape than previously estimated, with upgrades to growth, income, savings and corporate profits.
This improved economic backdrop was acknowledged by Powell this week when he pushed back against investors' expectations for another half-percentage-point rate cut in November, saying “this is not a committee that feels like it is in a hurry to cut rates quickly.”
The Fed hiked rates by 525 basis points in 2022 and 2023, and delivered its first rate cut since 2020 last month. Its policy rate is currently set in the 4.75%-5.00% band.
Early on Friday, financial markets saw a roughly 71.5% chance of a quarter-point rate reduction in November, CME's FedWatch tool showed. The odds of a 50 basis points cut were around 28.5%.