A new e-commerce law in Saudi Arabia, passed last week by the Saudi cabinet, is set to “further accelerate the kingdom’s fast-growing online retail market,” analysts told Zawya.
The new law aims to enhance the reliability of e-commerce in the Kingdom and provide a boost to that sector. The new law is being hailed as a first of its kind code in the Kingdom to regulate the relationship between consumers and e-commerce practitioners who do not have a commercial registration, according to the Saudi Gazette.
The move could stimulate a market that has been named as one of the 10 fastest-growing worldwide. Officials are also hoping the new law would increase online retail’s contribution to the local economy, and help to drive down unemployment among internet-savvy Saudi youth, especially women.
The law requires e-commerce providers to disclose details of their trading terms, and the products and services they offer to consumers. It also provides higher scrutiny of e-commerce adverts to prevent fraud and the deception of consumers, Zawya reports.
In comments to Zawya, Muhammad Anam Saleem, principal associate at law firm AlDhabaan & Partners, a Saudi Arabian associate of global law firm Eversheds Sutherland, said that the new law “should increase consumer confidence and provide protection against fraudulent operators and deceptive advertiser(s) who often target ordinary customers.”
“Historically, there have been some unscrupulous e-commerce providers operating in the Saudi market and this law is welcomed as means to ensure that e-commerce providers do not escape the regulation they would face if operating physical stores,” he said.