KSA: Commercial Enterprises Turn Into Online Markets After Coronavirus

Coronavirus challenges impose the reality of shifting to e-stores in Saudi Arabia (Asharq Al-Awsat)
Coronavirus challenges impose the reality of shifting to e-stores in Saudi Arabia (Asharq Al-Awsat)
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KSA: Commercial Enterprises Turn Into Online Markets After Coronavirus

Coronavirus challenges impose the reality of shifting to e-stores in Saudi Arabia (Asharq Al-Awsat)
Coronavirus challenges impose the reality of shifting to e-stores in Saudi Arabia (Asharq Al-Awsat)

The rate of coronavirus infections in the Kingdom is gradually decreasing, while its economic impact, which some businessmen have described as “good,” is reflected in the shift to online shopping.

Large segments of consumers have resorted to online shopping during the lockdowns, in application to social distancing measures.

Several specialists in the Saudi market expected an increase in people’s interest in online shopping.

E-commerce specialist Afaf al-Askar told Asharq Al-Awsat that consumers in the Kingdom have resorted to e-commerce due to the coronavirus repercussions and the after-sales services that have seen a great development, especially by major commercial companies in the Saudi market.

She said the new developments have imposed a reality on after-sales services, stressing that they have become the main pillar on which e-commerce is based, and online shopping has become much easier for consumers.

Abdullah al-Bishri, one of the menswear merchants, said he suffered some losses since he wasn’t prepared to sell his goods online.

The Coronavirus has had a great impact on traditional trade, he stressed, noting that even before the crisis merchants noticed the increasing trend since 2019 for e-commerce in Saudi Arabia but thought it may not exceed 10 percent.

He also admitted an inaccurate reading of market trends by large segments of traders before the pandemic’s effects.

“Coronavirus has completely changed the trend as consumers now barely resort to traditional shopping,” he noted, adding that merchants must deal with the new trend as an existing reality and divert part of their sales towards e-commerce to meet consumers’ needs.

This development coincides with a study conducted by Visa Global Credit on the Saudi market.

It showed consumers’ increasing tendency to use digital payments compared to cash transactions.

According to the study, two-thirds of consumers in Saudi Arabia bought from online stores for the first time, indicating that 59 percent of them bought drugs from online pharmacies for the first time.

The study pointed out that 38 percent of the Kingdom’s merchants launched their websites as a direct result of the pandemic, while 57 percent already had e-commerce platforms before its outbreak.

Social Researcher Abdullah Marghalani, for his part, told Asharq Al-Awsat that people’s use of e-commerce in Saudi Arabia has social aspects.

It must be first acknowledged that the culture of e-commerce has increased significantly in the Kingdom over the past five years, even if the rate of people buying through traditional commerce was dominant at that time.

He stressed that resorting to online shopping was obligatory and imposed by the coronavirus outbreak.



Morocco’s Royal Air Maroc Scales Back Flights Due to Fuel Costs

 People board a Royal Air Maroc flight on July 15, 2020 at Bordeaux airport. (AFP)
People board a Royal Air Maroc flight on July 15, 2020 at Bordeaux airport. (AFP)
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Morocco’s Royal Air Maroc Scales Back Flights Due to Fuel Costs

 People board a Royal Air Maroc flight on July 15, 2020 at Bordeaux airport. (AFP)
People board a Royal Air Maroc flight on July 15, 2020 at Bordeaux airport. (AFP)

Morocco's state-owned carrier Royal Air Maroc (RAM) said on Saturday it would temporarily suspend several routes to African and European destinations due to ‌rising jet ‌fuel prices, ‌elevated ⁠operating costs and ⁠weak demand.

Tensions in the Middle East have driven a surge in global jet fuel ⁠prices, putting ‌pressure ‌on carriers and ‌prompting temporary route suspensions.

RAM ‌will pause flights linking Moroccan airports with several African cities ‌of Bangui, Brazzaville, Kinshasa, Douala, Yaounde and ⁠Libreville, ⁠the airline said in a statement.

It will also halt flights to the European destinations of Malaga, Barcelona, Lyon, Bordeaux, Marseille and Brussels.


Official: Iraq Has Not Yet Applied for an IMF Loan

A floating oil export platform in Basra port, Iraq (Reuters)
A floating oil export platform in Basra port, Iraq (Reuters)
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Official: Iraq Has Not Yet Applied for an IMF Loan

A floating oil export platform in Basra port, Iraq (Reuters)
A floating oil export platform in Basra port, Iraq (Reuters)

Financial Advisor to the Iraqi Prime Minister Mazhar Mohammed Saleh revealed on Saturday that Iraq has not yet submitted a formal request for a loan from the International Monetary Fund (IMF).

The Iraqi News Agency quoted Saleh as saying that “Iraq enjoys close relations with the IMF, and since 2003, it has concluded more than five agreements, three of which were Stand-by Arrangements, while the other agreements related to emergency support.”

Iran's war has caused significant disruptions in supply chains, especially in the energy sector, which was severely affected by a near-complete closure of the Strait of Hormuz, through which about 20 percent of global oil supplies pass.

Saleh stated that “the Fund has played a significant role in supporting the Iraqi economy over the past 23 years, especially since Iraq is now considered one of the biggest victims of the ongoing war in the region, considering that 85 percent of its oil exports pass through the Strait of Hormuz. This has caused significant harm and international concern, given that Iraq is an important and active member in the stability of the region and world markets.”

He pointed out that there is an Iraqi government team in contact with the IMF, meeting with Fund officials for consultations twice a year.

He clarified that “Iraq signed an agreement with the IMF on July 7, 2016, for a Stand-by Arrangement by providing a significant loan, which played a major role in supporting the general budget,” noting that “signing an agreement with the Fund is a matter decided by the Iraqi government, and this does not prevent consultations between the two parties, as Iraq is a member of this institution responsible for global stability.”

Saleh mentioned that “Iraq will borrow from the International Monetary Fund if the need arises, but there is no formal request from the government yet, and the current need is for the war in the region to stop, and for its geopolitical impacts on oil exports to cease.”

He added that “technical assistance from the IMF is available now, unlike the issue of financing, which requires the approval of a program by the Iraqi government.”

He explained that “the loan itself represents a reform program to support the budget or to achieve social goals, such as supporting the health and education sectors, because it is a human investment that must be subject to conditions defining expenditure directions and commitment to a reform program agreed upon by the Iraqi state and the IMF.”


Mawani Adds CMA CGM’s Ocean Rise Express Service to Jeddah Port

Mawani Adds CMA CGM’s Ocean Rise Express Service to Jeddah Port
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Mawani Adds CMA CGM’s Ocean Rise Express Service to Jeddah Port

Mawani Adds CMA CGM’s Ocean Rise Express Service to Jeddah Port

The Saudi Ports Authority (Mawani) has added CMA CGM's Ocean Rise Express (OCR) shipping service to Jeddah Islamic Port, aiming to strengthen maritime connectivity between Saudi Arabia and global markets, support the smooth flow of supply chains, and increase the efficiency of port operations.

The OCR service will connect Jeddah to key international ports, including Kobe, Nagoya, and Yokohama in Japan; Xiamen, Yantian, and Nansha in China; Rotterdam in the Netherlands; Hamburg in Germany; and Southampton in the United Kingdom.

The route will utilize vessels with a capacity of up to 10,000 TEUs, according to SPA.

This addition aligns with Mawani’s efforts to enhance Jeddah Islamic Port’s global competitiveness and support international trade.

By enabling access to new markets, the initiative reinforces the Kingdom's position as a global logistics hub in line with the National Transport and Logistics Strategy and Saudi Vision 2030.