Saudi Arabia Collaborates With UNCTAD To Measure E-Commerce Value And Enhance Competitiveness

Vice Minister of Commerce and CEO of the National Competitiveness Center, Dr. Eiman Al-Mutairi, highlighted the transformative impact of Vision 2030 on Saudi Arabia's economy. This initiative, led by His Royal Highness Prince Mohammed bin Salman bin Abdulaziz, has significantly altered the economic landscape. Speaking at a United Nations Conference on Trade and Development (UNCTAD) session hosted by the World Trade Organization (WTO), Al-Mutairi discussed efforts to measure e-commerce in Saudi Arabia.

The Kingdom is collaborating with UNCTAD to create a framework for assessing various e-commerce forms. This includes domestic and international transactions, as well as Business-to-Consumer (B2C), Business-to-Business (B2B), and Business-to-Government (B2G) interactions. The aim is to fully grasp the value of Saudi Arabia's burgeoning e-commerce sector, which is expected to reach approximately $15.4 billion by 2025.

During the session, attended by WTO Deputy Director-General Johanna Hill and UNCTAD's Director of E-commerce and Digital Economy Torbjörn Fredriksson, Dr. Al-Mutairi emphasized the importance of understanding this sector's growth. The session was moderated by Senior Data Scientist in UNCTAD Dr. Siriphan Wichaidit. Fredriksson noted that Saudi Arabia's support for the Group on Measuring E-Commerce (TG-eCOM) will bolster official statistics.

This support will aid in developing digital economy policies both within and outside Saudi Arabia at a global level. It will also help build necessary databases to comprehend e-commerce worldwide. Presenting this model at the World Trade Organization allows countries to adapt to e-commerce's significant impact on the global economy.

Dr. Al-Mutairi stated that capitalizing on e-commerce opportunities can provide new growth engines for small and medium enterprises while promoting inclusivity across regions and demographics. She stressed that keeping up with this sector's expansion requires robust systems for smooth transactions, efficient logistics, and reliable digital payment systems.

Currently, digital ordering accounts for nearly 20% of global retail activity, with market size projected to hit $3.6 trillion by 2025. Previously, Saudi Arabia signed an agreement with UNCTAD to measure e-commerce and digital trade, aiming to boost its leadership in the digital field and develop policies enhancing its global competitiveness.

Strategic Partnerships

The National Competitiveness Center has forged effective partnerships with international organizations to leverage their practices in improving Saudi Arabia’s competitiveness. UNCTAD stands out as a key partner, providing support for policymaking across development aspects.

This collaboration underscores Saudi Arabia’s commitment to advancing its digital economy through strategic alliances and comprehensive frameworks that address both local and international e-commerce dynamics.

With inputs from SPA