Saudi Arabia’s cabinet passed the e-commerce law on Tuesday to regulate the relationship between the parties in the sector in line with the growth of e-commerce in the country.
The new regulation comes as part of the e-commerce council’s initiatives.
The ministry is looking to benefit from the strong growth of e-commerce across the Kingdom under 39 initiatives to enhance infrastructure, payment systems, postal and logistic services.
It will also provide a promising market for potential investments in the e-commerce sector.
“The e-commerce system is a new historical stage in the national economy,” said Minister of Commerce and Investment Dr. Majid al-Qasabi.
He said it bolsters the economy’s position and ability to keep pace with all the world’s changes and modern trading patterns.
It also aims at enhancing the reliability of business transactions, stimulating and developing e-commerce activities, providing consumer protection against fraud, deception or misinformation and preserving all rights.
In his remarks on Tuesday, Qasabi stressed the importance of e-commerce and its role in boosting the national economy in light of the great growth witnessed in Saudi Arabia.
The Kingdom is considered one of the 10 fastest-growing states in e-commerce around the world, with a growth rate exceeding 32 percent per year.
He pointed out that e-commerce is also one of the pillars of the Kingdom’s Vision 2030 under the National Transformation Program and a major contributor to its economy.
The volume of the e-commerce market in the Kingdom stands at SAR80 billion, Qasabi added.
The e-commerce seller or provider of services is required to provide consumers with a clear and understandable statement on the contract’s terms and conditions through technical steps that the consumer must follow to purchase a commodity or service.
The system also adds information on the service provider, description and prices of its services and goods, including any additional fees, payment and delivery arrangements and implementation.
Furthermore, it calls for the submission of an invoice to the consumer showing the price of the product or service.
It requires the service provider, practicing a profession subject to a specific regulation and requiring a license or authorization, to submit information about the professional entity or organization the provider has registered in, the applicable professional title, the country in which this title was granted and any other information the Ministry of Commerce and Investment considers important for consumer protection.
