The Challenges and Opportunities of e-Commerce in Saudi Arabia

Internet History in Saudi Arabia

The first introduction for the Internet in Saudi Arabia was in 1994 since different sectors got access to it. The Internet has been available by the ministerial decision since 1997, yet it has been available for public access since 1999. Over the years, the number of users increases dramatically; it is start from 20000 Internet users by 2000 to 2.54 million Internet users by 2005. That growth is almost %1170, which is considered to be the fastest growing in the Internet market. (ISSU Department at King Abdul-Aziz city and Communication science technology, P3)

IT Industry Difficulties in Saudi Arabia

IT has been a booming industry in Saudi Arabia in recent years. Information technology in Saudi Arabia is an industry comprising of two main components: business process outsourcing (BPO) and IT Services. This sector has also led to huge employment generation, especially for young graduates. IT industry has enabled Saudi Arabia to forge close relationships with European Union and United States.

The success of the E-Commerce industry in Saudi Arabia is closely linked with the success of the IT industry. Experienced managers in big IT companies know how to use the benefits of the multiplier effect to their advantage. Saudi Arabia does not have this ecosystem and does not produce managers and skilled executives in adequate numbers. Saudi Arabia has been unable to attract serious geeks. The programming job is a creative one and programmers are at their creative best between the ages of 23 to 32. The work culture in Saudi Arabia does not allow paying such geeks salaries in the range of 2500-3500 dollars a month and at the same time seems to reward prosperous people who sell insurance / properties and othe...

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