Saudi Arabia Requires Shipping Companies to Let Consumers Inspect Packages Before Accepting Delivery

An employee of the General Authority for Transport inspects postal parcel warehouses (SPA). 
An employee of the General Authority for Transport inspects postal parcel warehouses (SPA). 
TT

Saudi Arabia Requires Shipping Companies to Let Consumers Inspect Packages Before Accepting Delivery

An employee of the General Authority for Transport inspects postal parcel warehouses (SPA). 
An employee of the General Authority for Transport inspects postal parcel warehouses (SPA). 

Saudi Arabia’s Ministry of Commerce issued an official directive requiring all private-sector shipping and delivery companies to allow consumers to open packages, inspect their contents, and examine them in the presence of the delivery representative before completing final delivery or providing the verification code.

According to information obtained by Asharq Al-Awsat, the move is aimed at increasing transparency, strengthening consumer protection, and putting an end to inconsistent practices, and comes as Saudi Arabia’s e-commerce sector experiences record growth.

Active commercial registrations in the sector grew by 9 percent during the first quarter of this year, surpassing 45,600 commercial registrations, in line with the key objectives of the National Transformation Program supporting Vision 2030.

This advanced measure adopted by the Saudi Ministry of Commerce forms part of a broader global legal and legislative movement aimed at addressing the trust gap in the e-commerce environment, particularly during what is legally referred to as the “inspection before acceptance” stage. International practices — including the Vienna Convention on Contracts for the International Sale of Goods and civil laws in countries such as Germany and France — generally hold that a buyer is not legally obligated to accept goods or make final payment until given a “reasonable opportunity to inspect” them.

The measure is also expected to resolve one of the biggest legal disputes in shipping: establishing the “condition of the product at the moment of delivery,” thereby preventing the shifting of responsibility among the retailer, the shipping company, and the consumer.

The official spokesperson for the Ministry of Commerce, Abdulrahman Al-Hussein, recently addressed the issue in a video statement, settling the debate by stressing the importance of not providing the shipment code to the delivery representative before inspecting the package. He explained that the code constitutes an official acknowledgment by the consumer that all purchased items were received properly and met standards of safety and quality.

Al-Hussein emphasized that if a product is defective or does not match the agreed specifications, the consumer has the right to refuse delivery, underscoring the importance of safeguarding rights and obligations in e-commerce transactions.

According to the information obtained, the Ministry of Commerce notified all private-sector companies that customers must be allowed to open shipments and inspect their contents in front of the delivery representative before being asked to provide the product delivery verification code.

In recent months, consumers have increasingly called for tighter regulation of package delivery procedures, particularly following repeated cases involving shipments that did not match orders, arrived damaged, or were missing items. This prompted authorities to stress the necessity of allowing customers to verify shipments before completing delivery, thereby strengthening confidence in the e-commerce market and protecting the rights of all parties.

Growth of E-Commerce

Strengthening the e-commerce business ecosystem is one of the objectives of the National Transformation Program in support of Vision 2030, given the sector’s importance and its role in boosting the national economy. Saudi Arabia ranks among the world’s top 10 fastest-growing countries in this sector.

During the first quarter of this year, the e-commerce sector recorded 9 percent growth in active commercial registrations, exceeding 45,600 registrations by the end of the quarter, compared with 41,800 during the same period in 2025.

Riyadh accounted for the highest number of these registrations, with more than 20,000, followed by Makkah Province with 11,500. The Eastern Province came next with approximately 6,800 commercial registrations.

 

 



OPEC+ Approves Further Oil Output Increase

The logo of the Organization of Petroleum Exporting Countries (OPEC) is seen at its headquarters in Vienna on June 3, 2023. (AFP)
The logo of the Organization of Petroleum Exporting Countries (OPEC) is seen at its headquarters in Vienna on June 3, 2023. (AFP)
TT

OPEC+ Approves Further Oil Output Increase

The logo of the Organization of Petroleum Exporting Countries (OPEC) is seen at its headquarters in Vienna on June 3, 2023. (AFP)
The logo of the Organization of Petroleum Exporting Countries (OPEC) is seen at its headquarters in Vienna on June 3, 2023. (AFP)

OPEC+ has agreed a further increase in output targets from August, the group said in a statement on Sunday, adding to global supply at a time when oil prices are falling due to the gradual reopening of the Strait of Hormuz for oil exports.

The oil-producing group agreed during an online meeting to increase quotas by 188,000 barrels per day from August, on top of similar increases for June and July.

The seven core members of OPEC+, which groups OPEC and allied producers including Russia, have hiked their output quotas from April through July by almost ‌800,000 bpd.

OPEC+ output fell to 33.13 million bpd in May, according to OPEC data, from 42.77 million bpd in February.

Despite persisting supply disruptions, oil prices have returned to pre-war levels, pressured by lower Chinese imports, higher exports from ⁠non-Middle East producers, and a record global strategic stock release coordinated by ‌the International Energy Agency.

"The group of seven kept unwinding their ‌production cuts as widely expected," UBS analyst Giovanni Staunovo said. "The near-term focus will remain on how many tankers will ‌manage to cross the Strait of Hormuz and how quickly demand and Chinese crude imports recover."

A ‌memorandum of understanding between Washington and Tehran to end the war has also helped convince traders that supply will ultimately return to normal levels.

Brent crude prices traded near $72 per barrel on Friday, down from recent peaks of more than $120 per barrel and back to levels traded just before the US ‌and Israel attacked Iran on February 28.

Those seven producers — Saudi Arabia, Russia, Iraq, Kuwait, Algeria, Kazakhstan and Oman — are boosting output as part of the phased rollback of a 1.65 million bpd supply cut agreed in 2023, when the group still included the UAE.


Saudi Tourism Gains Momentum in Q1 as Licenses Rise and Workforce Nears One Million

A view of a tourist resort in Al-Khobar, Saudi Arabia. (SPA)
A view of a tourist resort in Al-Khobar, Saudi Arabia. (SPA)
TT

Saudi Tourism Gains Momentum in Q1 as Licenses Rise and Workforce Nears One Million

A view of a tourist resort in Al-Khobar, Saudi Arabia. (SPA)
A view of a tourist resort in Al-Khobar, Saudi Arabia. (SPA)

The tourism and hospitality sector in Saudi Arabia showed strong operational dynamism and institutional expansion in the first quarter of 2026, according to official data from Saudi Arabia's General Authority for Statistics. Despite the freedom demonstrated in daily price levels and occupancy rates, the sector's regulatory environment saw extraordinary growth in licenses and an influx of both national and expatriate workers.

Indicators confirmed an increase in the total number of licensed tourism hospitality facilities in the Kingdom during Q1 2026 by 22.7 percent, reaching 6,122 facilities compared to 4,988 in the same quarter of 2025. Serviced apartments and other hospitality facilities accounted for the largest share, at 51.6 percent of the total, with 3,159, while the number of licensed hotels reached 2,963.

This facility expansion was paralleled by an increase in the number of establishments; the number of tourism establishments with employees in the Kingdom reached approximately 177,031 during Q1 2026, marking a 9.0 percent growth compared to the corresponding quarter of last year, which then recorded 162,473 establishments.

The total number of people employed in tourism activities saw a 6.5 percent year-on-year jump, increasing the sector's workforce to 1,047,313 employees compared to 983,253 in the same period of 2025.

According to the data, the number of Saudi employees in tourism activities reached 250,094, representing 23.9 percent of the total workforce, while non-Saudis numbered 797,219.

Conversely, the room occupancy rate in hotels decreased to 60.8 percent during Q1 2026, a decline of 2.2 percentage points compared to the same quarter of 2025, which recorded 63.0 percent.

In contrast, the serviced apartments and other hospitality facilities sector showed positive growth; its occupancy rate increased by 1.0 percent to reach 51.6 percent compared to 50.7 percent in the corresponding quarter in 2025.

At the price level, the average daily rate for a hotel room recorded an 11.4 percent decrease, reaching 423 Saudi Riyals compared to 477 Riyals in Q1 2025. The average daily rate in the serviced apartments and other hospitality facilities sector also saw a slight decrease of 1.2 percent, stabilizing at 206 Saudi Riyals compared to 209 Riyals.

Despite fluctuations in prices and occupancy, the Authority's statistics revealed a tangible improvement in the average length of guest stay:

In Hotels: The average length of stay increased by 2.0 percent, reaching 4.2 nights during Q1 2026 compared to 4.1 last year.

In Serviced Apartments: The length of stay increased by 1.2 percent, reaching 2.2 nights compared to 2.1 in the same quarter of 2025.

These aggregated data, which were compiled by the General Authority for Statistics using administrative records and secondary data, reflect an important phase of structural transformation in the Kingdom's tourism sector as it strives for operational solvency and relies on long-term, quality investments.


Saudi Arabia’s Non-oil Private Sector Grows in June, New Orders at Four-month High

General view of the Saudi capital Riyadh (AFP)
General view of the Saudi capital Riyadh (AFP)
TT

Saudi Arabia’s Non-oil Private Sector Grows in June, New Orders at Four-month High

General view of the Saudi capital Riyadh (AFP)
General view of the Saudi capital Riyadh (AFP)

The latest Riyad Bank Purchasing Managers' Index (PMI), released on Sunday, showed that growth in Saudi Arabia's non-oil private sector accelerated markedly at the end of the second quarter.

The improvement was driven by the strongest increase in new orders and new business in four months, helping business activity regain strong momentum despite continued challenges from weak export demand and mounting inflationary pressures.

The seasonally adjusted headline index rose to 53.3 in June from 52.8 in May, remaining above the 50.0 threshold that separates growth from contraction and signaling a solid improvement in overall operating conditions and the domestic business environment.

Domestic demand rebounds

The report attributed the latest upturn to stronger inflows of new business and higher domestic spending, supported by companies securing approvals for new projects and the resumption of previously delayed sales activity as concerns over regional tensions eased. This helped bolster confidence among both investors and consumers across the kingdom.

The data showed sustained growth in output, with around 18% of surveyed firms reporting higher activity levels, while only 2% recorded a decline in output during June.

Commenting on the survey, Riyad Bank Chief Economist Naif Alghaith said: "Strong output growth, alongside the fastest increase in new orders in four months, indicates that business activity regained positive momentum at the end of the second quarter. These results once again demonstrate the resilience of the domestic economy and the non-oil sector's ability to provide a solid foundation for the kingdom's broader economic growth."

Alghaith added, highlighting companies' operating strategies: "Operationally, firms maintained strict discipline, with employment levels broadly unchanged, while backlogs of work declined for the first time in a year. This suggests companies were able to absorb rising workloads without creating capacity constraints, while prioritizing operational efficiency and measured expansion."

Exports weaken

On the other hand, the report said the rebound in the domestic market contrasted with export performance, as new orders from overseas clients declined for a fourth consecutive month, weighed down by regional logistical disruptions and intensifying competition in external markets.

Price pressures also remained the biggest challenge facing businesses. Input costs recorded their strongest quarterly increase in 15 years, driven by higher fuel, freight and wage costs. The sustained cost pressures prompted around 22% of surveyed firms to raise prices for their goods and services, resulting in the second-fastest increase in output charges in nearly six years.

Alghaith commented on how firms are managing these challenges, saying: "Despite continued cost pressures, companies appear able to manage them prudently without materially affecting overall optimism or the level of activity. This in turn reflects the underlying resilience of businesses and their strong ability to strike a careful balance between maintaining profitability and pursuing sustainable expansion in the market."