Gulf Countries Address e-commerce Challenges

The Biban 23 Forum, which was recently held in Riyadh, shed light on e-commerce. (Asharq Al-Awsat)
The Biban 23 Forum, which was recently held in Riyadh, shed light on e-commerce. (Asharq Al-Awsat)
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Gulf Countries Address e-commerce Challenges

The Biban 23 Forum, which was recently held in Riyadh, shed light on e-commerce. (Asharq Al-Awsat)
The Biban 23 Forum, which was recently held in Riyadh, shed light on e-commerce. (Asharq Al-Awsat)

The General Secretariat of the Gulf Cooperation Council (GCC) is working on limiting the challenges related to e-commerce in member-states, including legal, regulatory or logistical obstacles that prevent optimal use of the advantages of the sector.

It has called on government and private agencies in the Gulf to intensify efforts and collect the information required to give a clear picture to the decision-makers at the council level.

This comes in conjunction with the growth of e-commerce in the GCC countries, as the sector is expected to reach $50 billion by 2025, according to a report by Kearney Middle East.

According to information obtained by Asharq Al-Awsat, the Saudi private sector is currently preparing an integrated file to list the difficulties it faces in e-commerce, before submitting the data to the General Secretariat of the GCC.

These results would contribute to shedding light on the necessary measures to create an appropriate legislative and regulatory climate that keeps pace with developments in the digital world, and within local, regional and international commercial markets.

E-commerce is a major driver of economic growth and helps in expanding the scope of commercial transactions, bringing them to the largest number of companies and consumers, and providing more opportunities and a broader base for transactions.

The Federation of Chambers of the GCC announced its support for the outcome of the consultative meeting of the ministers of trade and industry and representatives of the Gulf private sector, which was held recently in Amman, calling for completing the implementation of the common market paths and addressing the challenges of intra-trade between the council members.

The federation emphasized the need to adopt the necessary steps to support the implementation of the paths of the Gulf common market, in coordination with the GCC General Secretariat, and to present relevant initiatives and studies.

Hassan Al-Huwaizi, President of the Federation of Gulf Chambers, said at the time that they would work to encourage citizens of the GCC countries to interact more with the electronic platform (Takamol), which aims to address inquiries, observations and proposals related to the common market.



Instagram Courts TikTok Stars during Turbulent Times

A man films a TikTok video outside the US headquarters of the social media company TikTok in Culver City, California, US January 18,2025. REUTERS/Fred Greaves
A man films a TikTok video outside the US headquarters of the social media company TikTok in Culver City, California, US January 18,2025. REUTERS/Fred Greaves
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Instagram Courts TikTok Stars during Turbulent Times

A man films a TikTok video outside the US headquarters of the social media company TikTok in Culver City, California, US January 18,2025. REUTERS/Fred Greaves
A man films a TikTok video outside the US headquarters of the social media company TikTok in Culver City, California, US January 18,2025. REUTERS/Fred Greaves

Meta-owned Instagram has been wooing creators from TikTok as the China-based video-snippet sharing app's future remains uncertain in the United States.
After officially increasing the allowed length of videos and adding a new editing tool, Meta recently began letting TikTok creators earn as much as $5,000 over the course of three months for posting "Reels" to Facebook and Instagram.
The "Breakthrough Bonus" program for eligible TikTok creators is intended to "help jumpstart their growth on our apps," a Meta spokesperson told AFP.
In addition, Meta is quietly offering incentives amounting to tens of thousands of dollars a month to get creators with large TikTok audiences to switch to rival platform Reels at Instagram, according to a report Wednesday in The Information.
"Meta has been trying to take advantage of the volatility around TikTok for months, and now its efforts to court TikTok creators have gone from subtle to overt," said Emarketer analyst Jasmine Enberg.
Temporary reprieve
The campaign to get TikTok stars to switch allegiance to Reels comes as TikTok's future in the United States remains unsettled.
TikTok is facing down a US law that ordered the company to divest from its Chinese owner ByteDance or be banned in the United States.
In one of his first acts in office, President Donald Trump ordered a pause on enforcing the law that should have seen TikTok effectively made illegal in the country on Sunday.
The executive order directed his attorney general to delay the implementation of the law for 75 days.
The TikTok ban passed due to concerns that the Chinese government could exploit the app to spy on Americans or covertly influence US public opinion through data collection and content manipulation.
TikTok briefly shut down in the United States late Saturday as the law's sale deadline approached, leaving millions of dismayed users barred from the app.
That same day, Instagram boss Adam Mosseri announced that video snippets shared on Reels could now last 3 minutes instead of 90 seconds, a limit set more than two years ago.
On Sunday, Mosseri announced a new video editing application will make its debut on iPhones in February.
That comes as TikTok's flagship editing tool, CapCut, has disappeared from mobile app stores in the United States because it's owned by the same parent company, ByteDance.
"There's a lot going on right now, but no matter what happens, it's our job to provide the best possible tools for creators," Mosseri said.
Zuckerberg and Trump
Analyst Enberg believes the new features won't be enough to win over the TikTok faithful, with some likely to be irked by "blatant copycat behavior" as many are "rattled" by Meta's moves to align itself with the Trump administration.
Meta chief Mark Zuckerberg has dined with Trump since his victory, openly praised the president and appointed Trump allies to positions of influence at the tech firm.
Meta also recently ended programs to prevent disinformation and vitriol on its platform, efforts long criticized by political conservatives.
While Instagram is considered the most likely alternative to TikTok, Chinese application named Xiaohongshu -- nicknamed "Red Note" -- is a preferred option for many in the United States.
Even though the app is in Mandarin, many see it as a way of thumbing their noses at Meta and US politicians.
"The potential of a cash bonus is going to be hard for TikTok creators to resist, regardless of how they feel about Meta," said analyst Enberg.
As for users, they will follow where their beloved creators lead, and there is no better way to get them to Instagram than money, Enberg reasoned.