The General Authority for Small and Medium Enterprises, “Monsha’at,” has released a report titled “Small and Medium Enterprises and Promising Prospects for E-Commerce.” This report is part of a series aimed at highlighting the e-commerce ecosystem in the Kingdom and the government initiatives supporting SMEs.
The report, available in both Arabic and English, presents key statistics about the e-commerce sector in Saudi Arabia. It notes the sector’s significant growth, with e-commerce project funding reaching 1.6 billion SAR in 2023 and the number of e-commerce platform users expected to hit 34.5 million by 2025. The user base has grown by 42% between 2019 and 2024.
The report emphasizes the benefits of e-commerce for SMEs, such as overcoming market entry barriers, reducing operational costs, and accessing a broad customer base. However, it also highlights challenges like competition, limited resources, inventory management, and business services that might hinder growth.
Expert insights are included, such as an interview with e-commerce advisor Mohannad Al-Mulhim from the E-Commerce Council. He discusses the current state of the sector, support mechanisms from the council, and future trends and innovations. Mazen Al-Darrab, CEO of ZID, talks about the company’s role in facilitating cooperation between e-store owners and relevant entities, as well as launching online stores for entrepreneurs.
The report also features success stories, including Abdulaziz Al-Loughani, Chairman and CEO of Floward, who shares the company’s journey from its 2017 inception in the GCC to its expansion into 9 countries and 40 cities globally. The founder and CEO of Taroud also shares the company’s beginnings, challenges faced, and future plans.
Additionally, Monsha’at has launched an awareness campaign titled “The Market is Your Game” to encourage entrepreneurs to enter and benefit from e-commerce. This campaign involves various public and private sector entities and aims to inform entrepreneurs about the services provided by Monsha’at and other enablers in the e-commerce sector.
