Government Initiatives: The Missing Key for E-commerce Growth in KSA

TL;DR

This paper investigates the slow growth of e-commerce in Saudi Arabia, highlighting that government support is the most critical factor influencing online retailing adoption among retailers and consumers.

Contribution

It identifies government initiatives as the key missing element that could accelerate e-commerce growth in Saudi Arabia, based on qualitative interviews.

Findings

Government support is the most influential factor for e-commerce growth.

Few Saudi companies are actively engaged in e-commerce.

Retailers and consumers agree on the importance of government initiatives.

Abstract

This paper explores the issues that influence online retailing in Saudi Arabia. Retailers in Saudi Arabia have been reserved in their adoption of electronically delivered aspects of their business. Despite the fact that Saudi Arabia has the largest and fastest growth of ICT marketplaces in the Arab region, e-commerce activities are not progressing at the same speed. Only very few Saudi companies, mostly medium and large companies from the manufacturing sector, are involved in e-commerce implementation. Based on qualitative data collected by conducting interviews with 16 retailers and 16 potential customers in Saudi Arabia, several factors influencing online retailing diffusion in Saudi Arabia are identified. However, government support comes the highest and most influencing factor for online retailing growth as identified by both parties; retailers and potential customers in Saudi Arabia.