Where is E-Commerce Headed?
The Future of E-Commerce in Saudi Arabia
The e-commerce sector has witnessed a qualitative shift in recent days, following the issuance of the e-commerce system. This successful step will enhance this sector and attract investors to it. It has witnessed steady development over the past nine years without an organization clarifying its features. Therefore, we decided to discuss the most prominent provisions contained in this system.
For help understanding how your business can expand with e-commerce, Khalaf Bandar | International Advisors PLLC can help. To schedule a consultation, contact our business law attorneys today.
Provisions for E-Commerce Market in Saudi Arabia
The provisions of this system mean three categories of persons: every service provider inside the Kingdom, whether merchants or not, and every practitioner outside the Kingdom who provides his services or products within the Kingdom by displaying them in a way that enables the consumer to access them.
Thus, the system resolves the controversy over international electronic transactions, as it holds jurisdiction over the Kingdom’s systems as long as services and products are offered within the Kingdom.
What System is in Place to Support the Saudi Arabian E-Commerce Market?
The system has improved the spatial jurisdiction by organizing the headquarters of the service provider. If he is a merchant, his address mentioned in the commercial registry is taken into account, but if he is a civilian and not a merchant, his place of residence registered with the relevant authorities is taken into account. The nice thing is that the system did not make the use of a foreign address a presumption of the presence of the headquarters outside the Saudi region.
As for the obligations incurred by the service provider, they include:
- Registering in the commercial registry for the merchant
- Submitting a statement to the consumer explaining the provisions of the contract to be concluded
- Submitting an invoice to the consumer that includes the total purchase costs with all fees and taxes, including delivery costs, place, and time.
These obligations are in addition to disclosing any licenses required by the applicable regulations to practice the profession in the place of electronic commercial activity.
Consumer Rights in Saudi E-Commerce
It is worth noting that the consumer has been granted the right to cancel the contract if he does not use or benefit from the service or product subject to the contract, within the seven days following the date of his receipt of the product.
Unless the subject matter of the contract is one of the legally excluded items, it also allows the consumer to cancel the contract if the service provider is late in delivery or implementation for a period exceeding fifteen days from the date of concluding the contract.
The consequences of annulment were determined according to the general rules so that it is on the consumer in the first case, and on the service provider in the second case.
How Will Saudi Arabia’s Vision 2030 Plan Affect E-Commerce in Saudi Arabia?
Saudi Arabia’s Vision 2030 is a strategic framework aimed at reducing the country’s dependence on oil, diversifying its economy, and developing public service sectors such as health, education, infrastructure, recreation, and tourism. Here’s how it aims to improve e-commerce:
- Digital Infrastructure: Vision 2030 emphasizes the development of a robust digital infrastructure, which is crucial for the growth of e-commerce. This includes expanding high-speed internet access and enhancing cybersecurity measures.
- Regulatory Reforms: The plan includes reforms to create a more business-friendly environment, simplifying regulations and procedures for starting and operating e-commerce businesses.
- Investment in Technology: By investing in technology and innovation, Saudi Arabia aims to foster a tech-savvy environment that supports e-commerce growth. This includes initiatives to support startups and tech companies.
- Logistics and Transportation: Improving logistics and transportation infrastructure is a key component, facilitating faster and more efficient delivery of goods, which is vital for e-commerce success.
- Consumer Trust and Protection: Vision 2030 aims to enhance consumer protection laws and build trust in online transactions, encouraging more people to shop online.
- Youth and Workforce Development: By focusing on education and training, the plan seeks to equip the workforce with the skills needed for the digital economy, including e-commerce.
Contact Khalaf Bandar | International Advisors PLLC For Legal Help Establishing Your Saudi E-Commerce Business
As the Kingdom’s e-commerce business continues to grow and expand, it’s important to have all the legal assistance you’ll need. Our business laws work to help your business maintain compliance and protect your assets. For more information on how this works and how you can maintain the legality of your business in Saudi Arabia, contact Khalaf Bandar | International Advisors PLLC today.
