عربي English Türkçe اردو فارسى
Logo
Latest News
Features

Digital Payments Revolution Boosts E-Commerce Opportunities in Saudi Arabia

N/A
N/A
TT
20
TT

Digital Payments Revolution Boosts E-Commerce Opportunities in Saudi Arabia

N/A
N/A

For an extended period, the Saudi Arabian economy predominantly relied on cash, stemming from a culture rich in traditional local markets and negotiations.
This preference, once reinforced by a lack of trust in banking systems and the absence of regulatory frameworks for online transactions, is rapidly evolving.
With two-thirds of the kingdom’s population being under the age of 35, and the country ranking third globally in smartphone usage, Saudi Arabia is undergoing a swift transformation in payment preferences.
This shift not only reshapes consumer behavior but also serves as a pivotal element in the broader narrative of digital transformation, paving the way for a more efficient system for e-commerce and logistical services.
In a society where cultural traditions once dictated a preference for cash transactions, the Kingdom now embraces the digital revolution.
This transformation is evident in how both consumers and merchants swiftly adapt to online financial activities.
Prior to the coronavirus pandemic, cash-on-delivery was the preferred method for e-commerce transactions. However, today, digital payments have seen a significant surge in adoption, propelled by a large number of tech-savvy youth and the impact of the pandemic.
Digital Payments
In 2020, digital payment transactions in the Kingdom surged by 75%, while cash withdrawals from ATMs experienced a significant decline.
The reality is that this shift towards digital payments is not merely a matter of convenience or a response to global trends. It is a strategic move aligned with the Kingdom’s national transformation plan, “Vision 2030,” aiming to accelerate the digital economy and increase cashless transactions.
Government initiatives, such as the introduction of the SADAD system, and the efforts of the Saudi Central Bank to regulate and unify the digital payment sector, have streamlined electronic payments and enhanced trust among users.
This regulatory framework has played a crucial role in encouraging the adoption of online payment services, making digital transactions more secure and reliable.
Payment Applications
The e-commerce sector in Saudi Arabia, expected to surpass $13.2 billion by 2025, directly benefits from the growing trend towards digital payments.
With consumers becoming more comfortable with online payments, there has been a surge in demand for e-commerce, exemplified by a 60% increase in online shopping from 2019 to 2020.
The emergence of mobile payment applications such as Apple Pay, Google Pay, and various local apps has facilitated this shift, making smartphone payments more convenient than ever.
This increasing convenience in digital transactions not only enhances consumer comfort but also drives the expansion of the e-commerce sector. It also brings about an innovative approach in the logistics services domain to keep pace with this growth.
The rapid evolution of payment methods within the Kingdom represents a transformation reshaping the landscape of e-commerce and the logistics sector, particularly in the realm of order delivery.
Reducing cash transactions simplifies the delivery process, minimizes errors, enhances efficiency, and simultaneously supports environmental sustainability goals by reducing paper usage and improving delivery routes, resulting in decreased fuel consumption and carbon footprint.
One of the prominent challenges traditionally faced by Saudi Arabia in delivery services has been the absence of a clear and unified system for delivery addresses.
The lack of postal codes and precise addresses often leads to reliance on phone calls and detailed descriptions from customers, adding complexity and potentially causing delays in delivery operations.

To overcome these challenges in order delivery, leading logistics companies in Saudi Arabia are increasingly turning to the adoption of innovative technologies.
The Internet of Things
Nowadays, global positioning systems and Internet of Things (IoT) systems, along with advanced transportation management systems, are being utilized to achieve an immediate and smarter vision in order delivery.
These technologies not only enhance route planning and delivery efficiency but also ensure the fulfillment of the increasing demand for e-commerce through equally sophisticated logistical solutions.
The integration of these technologies serves as a testament to the industry’s commitment to overcoming fundamental challenges in delivery, especially within the rapidly evolving digital landscape.
Looking to the future, the potential use of drones and self-driving vehicles is also a fantastic means to enhance delivery services.
These advanced solutions could revolutionize the efficiency and speed of delivery operations, especially in hard-to-reach areas or during peak hours.
Meanwhile, Saudi Post has embarked on an ambitious initiative to provide an address for every workplace or residence.
Individuals or companies registering their addresses receive a short code consisting of 8 characters (4 letters and 4 numbers), creating a unified and comprehensive address system for all regions, cities, and villages in Saudi Arabia.
The current challenge lies in encouraging e-commerce retailers to include the new addresses in their customers’ orders for faster and more standardized adoption.
Despite the challenges, companies in the Kingdom are expanding their local networks and exploring on-demand delivery tools, allowing customers to specify delivery times and locations.
However, maintaining a balance between service quality and cost management remains a continuous and fundamental challenge in this sector.
Innovative Solutions
Saudis are anticipating a future where synergy between online payment methods, e-commerce, and logistics services in the Kingdom becomes more integrated and advanced.
The widespread adoption of digital payment methods is expected to drive an increase in e-commerce activities.
This evolution extends beyond enhancing current systems; it creates both opportunities and new challenges in the logistics landscape.
In conclusion, the shift towards digital payment methods serves as a catalyst for a broader transformation in the sectors of e-commerce and logistics in Saudi Arabia.
The future will witness a rise in seamless digital transactions and efficient logistical solutions, fostering the growth of the e-commerce sector and contributing to the broader economic objectives of the kingdom.
As Saudi Arabia continues to embrace digital transformation, the future of e-commerce and logistics appears not only promising but also integral to economic growth and diversification in the country.

Most Viewed

 
Features

Told to Fix Notorious Prison, Israel Just Relocated Alleged Abuses, Detainees Say 

Israeli security personnel stand outside Ofer military prison in the West Bank on Feb. 8, 2025. (AP) 
Israeli security personnel stand outside Ofer military prison in the West Bank on Feb. 8, 2025. (AP) 
TT
20
TT

Told to Fix Notorious Prison, Israel Just Relocated Alleged Abuses, Detainees Say 

Israeli security personnel stand outside Ofer military prison in the West Bank on Feb. 8, 2025. (AP) 
Israeli security personnel stand outside Ofer military prison in the West Bank on Feb. 8, 2025. (AP) 

Under pressure from Israel’s top court to improve conditions at a facility notorious for mistreating Palestinians seized in Gaza, the military transferred hundreds of detainees to newly opened camps.

But abuses at these camps were just as bad, according to Israeli human rights organizations that interviewed dozens of current and former detainees and are now asking the same court to force the military to fix the problem once and for all.

What the detainees’ testimonies show, rights groups say, is that instead of correcting alleged abuses against Palestinians held without charge or trial — including beatings, excessive handcuffing, and poor diet and health care -- Israel’s military just shifted where they take place.

"What we’ve seen is the erosion of the basic standards for humane detention," said Jessica Montell, the director of Hamoked, one of the rights groups petitioning the Israeli government.

Asked for a response, the military said it complies with international law and "completely rejects allegations regarding the systematic abuse of detainees."

The sprawling Ofer Camp and the smaller Anatot Camp, both built in the West Bank, were supposed to resolve problems rights groups documented at a detention center in the Negev desert called Sde Teiman. That site was intended to temporarily hold and treat fighters captured during Hamas’ Oct. 7, 2023, attack on Israel. But it morphed into a long-term detention center infamous for brutalizing Palestinians rounded up in Gaza, often without being charged.

Detainees transferred to Ofer and Anatot say conditions there were no better, according to more than 30 who were interviewed by lawyers for Hamoked and Physicians for Human Rights-Israel. AP is the first international news organization to report on the affidavits from PHRI.

"They would punish you for anything" said Khaled Alserr, 32, a surgeon from Gaza who spent months at Ofer Camp and agreed to speak about his experiences. He was released after six months without charge.

Alserr said he lost count of the beatings he endured from soldiers after being rounded up in March of last year during a raid at Nasser Hospital in Khan Younis. "You’d be punished for making eye contact, for asking for medicine, for looking up towards the sky," said Alserr.

Other detainees’ accounts to the rights groups remain anonymous. Their accounts could not be independently confirmed, but their testimonies – given separately – were similar.

The Supreme Court has given the military until the end of March to respond to the alleged abuses at Ofer.

Leaving Sde Teiman

Since the war began, Israel has seized thousands in Gaza that it suspects of links to Hamas. Thousands have also been released, often after months of detention.

Hundreds of detainees were freed during the ceasefire that began in January. But with ground operations recently restarted in Gaza, arrests continue. The military won’t say how many detainees it holds.

After Israel's Supreme Court ordered better treatment at Sde Teiman, the military said in June it was transferring hundreds of detainees, including 500 sent to Ofer.

Ofer was built on an empty lot next to a civilian prison of the same name. Satellite photos from January show a paved, walled compound, with 24 mobile homes that serve as cells.

Anatot, built on a military base in a Jewish settlement, has two barracks, each with room for about 50 people, according to Hamoked.

Under wartime Israeli law, the military can hold Palestinians from Gaza for 45 days without access to the outside world. In practice, many go far longer.

Whenever detainees met with Hamoked lawyers, they were "dragged violently" into a cell — sometimes barefoot and often blindfolded, and their hands and feet remained shackled throughout the meetings, the rights group said in a letter to the military’s advocate general.

"I don’t know where I am," one detainee told a lawyer.

Newly freed Israeli hostages have spoken out about their own harsh conditions in Gaza. Eli Sharabi, who emerged gaunt after 15 months of captivity, told Israel’s Channel 12 news that his captors said hostages’ conditions were influenced by Israel’s treatment of Palestinian prisoners.

Regular beatings

Alserr said he was kept with 21 others from Gaza in a 40-square-meter cell with eight bunk beds. Some slept on the floor on camping mattresses soldiers had punctured so they couldn't inflate, he said. Scabies and lice were rampant. He said he was only allowed outside his cell once a week.

Detainees from Ofer and Anatot said they were regularly beaten with fists and batons. Some said they were kept in handcuffs for months, including while they slept and ate — and unshackled only when allowed to shower once a week.

Three prisoners held in Anatot told the lawyers that they were blindfolded constantly. One Anatot detainee said that soldiers woke them every hour during the night and made them stand for a half-hour.

In response to questions from AP, the military said it was unaware of claims that soldiers woke detainees up. It said detainees have regular shower access and are allowed daily yard time. It said occasional overcrowding meant some detainees were forced to sleep on "mattresses on the floor."

The military said it closed Anatot in early February because it was no longer needed for "short-term incarceration" when other facilities were full. Sde Teiman, which has been upgraded, is still in use.

Nutrition and health care

Alserr said the worst thing about Ofer was medical care. He said guards refused to give him antacids for a chronic ulcer. After 40 days, he felt a rupture. In the truck heading to the hospital, soldiers tied a bag around his head.

"They beat me all the way to the hospital," he said. "At the hospital they refused to remove the bag, even when they were treating me."

The military said all detainees receive checkups and proper medical care. It said "prolonged restraint during detention" was only used in exceptional cases and taking into account the condition of each detainee.

Many detainees complained of hunger. They said they received three meals a day of a few slices of white bread with a cucumber or tomato, and sometimes some chocolate or custard.

That amounts to about 1,000 calories a day, or half what is necessary, said Lihi Joffe, an Israeli pediatric dietician who read some of the Ofer testimonies and called the diet "not humane."

After rights groups complained in November, Joffe said she saw new menus at Ofer with greater variety, including potatoes and falafel — an improvement, she said, but still not enough.

The military said a nutritionist approves detainees' meals, and that they always have access to water.

Punished for seeing a lawyer

Two months into his detention, Alserr had a 5-minute videoconference with a judge, who said he would stay in prison for the foreseeable future.

Such hearings are "systematically" brief, according to Nadia Daqqa, a Hamoked attorney. No lawyers are present and detainees are not allowed to talk, she said.

Several months later, Alserr was allowed to meet with a lawyer. But he said he was forced to kneel in the sun for hours beforehand.

Another detainee told the lawyer from Physicians for Human Rights that he underwent the same punishment. "All the time, he has been threatening to take his own life," the lawyer wrote in notes affixed to the affidavit.

Since his release in September, Alserr has returned to work at the hospital in Gaza.

The memories are still painful, but caring for patients again helps, he said. "I’m starting to forget ... to feel myself again as a human being."