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 Non-Oil Exports Hit Two-Year High

The King Abdulaziz Port in Dammam, eastern Saudi Arabia. (“Mawani” port authority)
The King Abdulaziz Port in Dammam, eastern Saudi Arabia. (“Mawani” port authority)
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Saudi Non-Oil Exports Hit Two-Year High

The King Abdulaziz Port in Dammam, eastern Saudi Arabia. (“Mawani” port authority)
The King Abdulaziz Port in Dammam, eastern Saudi Arabia. (“Mawani” port authority)

Saudi Arabia’s non-oil exports soared to a two-year high in May, reaching SAR 28.89 billion (USD 7.70 billion), marking an 8.2% year-on-year increase compared to May 2023.

On a monthly basis, non-oil exports surged by 26.93% from April.

This growth contributed to Saudi Arabia’s trade surplus, which recorded a year-on-year increase of 12.8%, reaching SAR 34.5 billion (USD 9.1 billion) in May, following 18 months of decline.

The enhancement of the non-oil private sector remains a key focus for Saudi Arabia as it continues its efforts to diversify its economy and reduce reliance on oil revenues.

In 2023, non-oil activities in Saudi Arabia contributed 50% to the country’s real GDP, the highest level ever recorded, according to the Ministry of Economy and Planning’s analysis of data from the General Authority for Statistics.

Saudi Finance Minister Mohammed Al-Jadaan emphasized at the “Future Investment Initiative” in October that the Kingdom is now prioritizing the development of the non-oil sector over GDP figures, in line with its Vision 2030 economic diversification plan.

A report by Moody’s highlighted Saudi Arabia’s extensive efforts to transform its economic structure, reduce dependency on oil, and boost non-oil sectors such as industry, tourism, and real estate.

The Saudi General Authority for Statistics’ monthly report on international trade noted a 5.8% growth in merchandise exports in May compared to the same period last year, driven by a 4.9% increase in oil exports, which totaled SAR 75.9 billion in May 2024.

The change reflects movements in global oil prices, while production levels remained steady at under 9 million barrels per day since the OPEC+ alliance began a voluntary reduction in crude supply to maintain prices. Production is set to gradually increase starting in early October.

On a monthly basis, merchandise exports rose by 3.3% from April to May, supported by a 26.9% increase in non-oil exports. This rise was bolstered by a surge in re-exports, which reached SAR 10.2 billion, the highest level for this category since 2017.

The share of oil exports in total exports declined to 72.4% in May from 73% in the same month last year.

Moreover, the value of re-exported goods increased by 33.9% during the same period.