Saudi E-commerce Growth Rate Exceeds 32%

Saudi Minister of Commerce Majid al-Qasabi at the event organized by the E-commerce Council in cooperation with the Joint Saudi-British Business Council (Asharq Al-Awsat)
Saudi Minister of Commerce Majid al-Qasabi at the event organized by the E-commerce Council in cooperation with the Joint Saudi-British Business Council (Asharq Al-Awsat)
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Saudi E-commerce Growth Rate Exceeds 32%

Saudi Minister of Commerce Majid al-Qasabi at the event organized by the E-commerce Council in cooperation with the Joint Saudi-British Business Council (Asharq Al-Awsat)
Saudi Minister of Commerce Majid al-Qasabi at the event organized by the E-commerce Council in cooperation with the Joint Saudi-British Business Council (Asharq Al-Awsat)

Saudi Arabia is one of the top ten countries in e-commerce, achieving an annual growth rate of more than 32 percent, announced Minister of Commerce Majid al-Qasabi.

Speaking at a seminar on the "Role of E-commerce in Strengthening the Saudi-British Economic Partnership," Qasabi stressed that strengthening the e-commerce business system is one of the goals of the National Transformation Program of Vision 2030.

He highlighted the significance of e-commerce in strengthening the national economy.

The E-commerce Council organized the event in cooperation with the Saudi-British Joint Business Council in London, which was attended by the Saudi ambassador to the UK, Prince Khalid bin Bandar, and the Honorary President of the Joint Saudi British Business Council, Baroness Symons, from the British side.

Qasabi chaired a high-level Saudi delegation that included representatives from 11 government agencies.

Deputy Minister of Commerce and General Supervisor of the E-commerce Council Iman al-Mutairi said that Saudi Arabia improved and reformed its e-commerce legislation and regulations, which created substantial growth opportunities in the field.

Mutairi noted that market growth reached $43.2 billion in 2021.

Several Saudi authorities in public and private sectors reviewed investment opportunities mainly in digital infrastructure, financial technology, electronic payment, logistics and transportation and last-mile delivery solutions.

They also reviewed electronic services related to the quality of life such as e-health, e-learning, entertainment, games, and others, in addition to dealing with cooperation and bilateral partnership in light of the high growth achieved by e-commerce.

Saudi authorities at the event included representatives from the ministries of trade, investment, transport, and logistics, the Saudi Central Bank (Sama), the Communications and Information Technology Commission (CITC), Zakat, Tax, and Customs Authority, the Small and Medium Enterprises Authority (Monshaat), the Saudi Data and Artificial Intelligence Authority (SDAIA), the National Competitiveness Center (NCC), the Saudi Business Center, and the Saudi Post.

The Saudi delegation continues its visit to London by touring several business accelerators and incubators, most notably "TechUK," concerned with trade and technology.

TechUK collaborates with the British government and about 850 members in various sectors to form and accelerate trade policies.

The Saudi officials will also visit Level39, a tech community consisting of 1250 leaders in cybersecurity and the UK's largest concentration of cyber expertise.

Saudi Arabia recently witnessed great steps to develop and strengthen its economic relationship with Britain leading to promising opportunities in its Vision 2030.



Saudi Transport, Logistics Sector Set for 10% Growth in Q2

An investor monitors a trading screen at the Saudi financial market in Riyadh. (AFP)
An investor monitors a trading screen at the Saudi financial market in Riyadh. (AFP)
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Saudi Transport, Logistics Sector Set for 10% Growth in Q2

An investor monitors a trading screen at the Saudi financial market in Riyadh. (AFP)
An investor monitors a trading screen at the Saudi financial market in Riyadh. (AFP)

As Saudi companies start reporting their Q2 financial results, experts are optimistic about the transport and logistics sector. They expect a 10% annual growth, with total net profits reaching around SAR 900 million ($240 million), driven by tourism and an economic corridor project.

In Q1, the seven listed transport and logistics companies in Saudi Arabia showed positive results, with combined profits increasing by 5.8% to SAR 818.7 million ($218 million) compared to the previous year.

Four companies reported profit growth, while three saw declines, including two with losses, according to Arbah Capital.

Al Rajhi Capital projects significant gains for Q2 compared to last year: Lumi Rental’s profits are expected to rise by 31% to SAR 65 million, SAL’s by 76% to SAR 192 million, and Theeb’s by 23% to SAR 37 million.

On the other hand, Aljazira Capital predicts a 13% decrease in Lumi Rental’s net profit to SAR 43 million, despite a 44% rise in revenue. This is due to higher operational costs post-IPO.

SAL’s annual profit is expected to grow by 76% to SAR 191.6 million, driven by a 29% increase in revenue and higher profit margins.

Aljazira Capital also expects a 2.8% drop in the sector’s net profit from Q1 due to lower profits for SAL and Seera, caused by reduced revenue and profit margins.

Mohammad Al Farraj, Head of Asset Management at Arbah Capital, told Asharq Al-Awsat that the sector’s continued profit growth is supported by seasonal factors like summer travel and higher demand for transport services.

He predicts Q2 profits will reach around SAR 900 million ($240 million), up 10% from Q1.

Al Farraj highlighted that the India-Middle East-Europe Economic Corridor (IMEC), linking India with the GCC and Europe, is expected to boost sector growth by improving trade and transport connections.

However, he warned that companies may still face challenges, including rising costs and workforce shortages.