TGA detects 13,000 transportation violations in Makkah and Madinah last week    Expat doctor arrested for circulating offensive acts through social media    Agreement reached on safe navigation in the Black Sea as Riyadh talks conclude Saudi Crown Prince's leadership role in resolving crisis hailed    Saudi Arabia condemns Israel's bombing of Syrian town Koya    Madinah Emir opens new premium airport lounge    Saudi Arabia hold Japan to goalless draw in Saitama to stay in World Cup hunt    Trump's national security team's chat app leak stuns Washington    'Record' payout for world's longest-serving death row inmate    Millions of UK tires meant for recycling sent to furnaces in India    Tourism Ministry continues enforcing closure of erring hotels with slapping maximum fine of SR1 million    150,000 Umrah pilgrims benefit from hair cutting service to exit from Ihram during Ramadan    Lulu opens new hypermarket in Makkah, in its further expansion in Saudi Arabia    Aramco continues to explore opportunities for investment in China, says Amin Nasser    NewJeans announces hiatus after setback in court battle    Disney's Snow White film tops box office despite bad reviews    George Foreman, heavyweight champion and cultural icon, dies at 76    Court rules against K-pop group NewJeans in record label dispute    Zimbabwe's Kirsty Coventry becomes first female IOC president    Salem Al Dawsari strike lifts Saudi Arabia past 10-man China in Asian qualifiers    Harry's US visa records unsealed after drug claims    Grand Mufti rules against posting prayers and preaching in mosques on social media    King Salman prays for peace and stability for Palestinians in Ramadan message King reaffirms Saudi Arabia's commitment to serving the Two Holy Mosques and pilgrims    Bollywood star Saif Ali Khan 'out of danger' after attack at home in Mumbai    Order vs. Morality: Lessons from New York's 1977 Blackout    Exotic Taif Roses Simulation Performed at Taif Rose Festival    Asian shares mixed Tuesday    Weather Forecast for Tuesday    Saudi Tourism Authority Participates in Arabian Travel Market Exhibition in Dubai    Minister of Industry Announces 50 Investment Opportunities Worth over SAR 96 Billion in Machinery, Equipment Sector    HRH Crown Prince Offers Condolences to Crown Prince of Kuwait on Death of Sheikh Fawaz Salman Abdullah Al-Ali Al-Malek Al-Sabah    HRH Crown Prince Congratulates Santiago Peña on Winning Presidential Election in Paraguay    SDAIA Launches 1st Phase of 'Elevate Program' to Train 1,000 Women on Data, AI    41 Saudi Citizens and 171 Others from Brotherly and Friendly Countries Arrive in Saudi Arabia from Sudan    Saudi Arabia Hosts 1st Meeting of Arab Authorities Controlling Medicines    General Directorate of Narcotics Control Foils Attempt to Smuggle over 5 Million Amphetamine Pills    NAVI Javelins Crowned as Champions of Women's Counter-Strike: Global Offensive (CS:GO) Competitions    Saudi Karate Team Wins Four Medals in World Youth League Championship    Third Edition of FIFA Forward Program Kicks off in Riyadh    Evacuated from Sudan, 187 Nationals from Several Countries Arrive in Jeddah    SPA Documents Thajjud Prayer at Prophet's Mosque in Madinah    SFDA Recommends to Test Blood Sugar at Home Two or Three Hours after Meals    SFDA Offers Various Recommendations for Safe Food Frying    SFDA Provides Five Tips for Using Home Blood Pressure Monitor    SFDA: Instant Soup Contains Large Amounts of Salt    Mawani: New shipping service to connect Jubail Commercial Port to 11 global ports    Custodian of the Two Holy Mosques Delivers Speech to Pilgrims, Citizens, Residents and Muslims around the World    Sheikh Al-Issa in Arafah's Sermon: Allaah Blessed You by Making It Easy for You to Carry out This Obligation. Thus, Ensure Following the Guidance of Your Prophet    Custodian of the Two Holy Mosques addresses citizens and all Muslims on the occasion of the Holy month of Ramadan    









Regional e-commerce companies are making a move on growth opportunities in the KSA
Published in Alriyadh on 17 - 11 - 2012

International investors are setting their sights on the Middle East's young but booming e-commerce industry, and particularly on the promising opportunity in the Saudi Arabian market. Paypal announced the launch of it's Middle East operations on November 14th, and three of the Middle East's largest online retailers, Namshi, Souq.com and MarkaVIP have all raised rounds of funding this year for major expansion:Namshi, a UAE-based online retailer focusing on fashion and footwear, has secured 20 million dollars from JP Morgan Chase and Blakeney Management; Marka VIP, the Middle East's largest flash sales site focusing on luxury goods, raised 10 million from multiple international venture capital firms; and Souq.com, the region's largest online retailer with a customer base of 8 million, secured $45 million end of last monthfrom Naspers, a South African media company, and Tiger Global, a New York hedge fund.
Saudi Arabia is the top destination for these e-commerce businesses: it ranks second in e-commerce sales in the GCC, and more importantly represents the biggest retail sector in the region, with the promise of huge growth in e-commerce in the near future. The challenges and opportunities of building an e-commerce business in Saudi Arabia is one of the central topics that will be explored in depth at ArabNet Riyadh, the largest gathering of digital executives and entrepreneurs in the KSA, taking place on November 20-21 at the Four Seasons Hotel. The forum will bring together more than 50 expert speakers and 600 attendees, and is hosted by the Badir Program for Technology Incubators, part of the King Abdulaziz City for Science and Technology, and supported by the Communications and Information Technology Commission of Saudi Arabia. "Being able to capture the Saudi Arabian market is a critical success factor for e-commerce ventures in the Arab region," stated Hassan Mikail, Regional Manager for E-Commerce at Aramex, which is the E-commerce Partner for ArabNet Riyadh. "All eyes are on Riyadh, where the next phase of rapid growth will be in this sector."
Some of the main challenges facing e-commerce businesses in Saudi Arabia and the region more broadly are payment and logistics. More than 70% of online buyers in the regionchoose cash on delivery as their preferred mode of payment, straining the cash flow of e-commerce startups.Cash on delivery purchases are 7 times more likely to be returned, according to Aramex, and this puts e-commerce companies at the risk of incurring extra shipping costs as well. Paypal's recent entrance to the market could help alleviate some of these issues and stimulate rapid growth in the sector. Elias Ghanem, PayPals new Managing Director for Middle East and North Africa commented: "PayPal has big ambitions to help millions of internet users to shop conveniently and safely online within the MENA region."
Beyond online retail, there are also tremendous opportunities for companies that can help existing offline businesses transition to the digital realm. Over 85% of businesses in the GCC have no online presence according to Google; these businesses are losing out on the 66% of MENA Internet users who use the web to search for products and services. Companies like Jeeran, a business reviews site, and Fursaty, a group-buying site, are stepping into fill the gap and providing merchants with their first glimpse of the benefits of going online and raising consumer awareness, further driving e-commerce in the region. Jeeran and Fursaty will be discussing the ways in which they are doing this at ArabNet Riyadh.
E-commerce markets in the MENA are evolving and the online customer baseis rapidly expanding.Hosam Arab, Co-Founder and Managing Director of Namshi.com declared, "The Middle East region is finally ripe for e-commerce as governments ease restrictions on regional trade, logistics providers scramble to improve their services to e-commerce retailers and their customers, and investment funds pour into the sector after the emergence of a number of exciting regional success stories."


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