RIYADH: Saudi Arabia and the UN Trade and Development have signed an agreement aimed at enhancing the formulation of e-commerce and digital economy policies in the Kingdom. 

According to the Saudi Press Agency, the agreement will help build a framework in the Kingdom’s e-commerce sector by implementing a survey to assess the current situation and disseminating the data in accordance with international best practices.

The agreement was signed by the Kingdom’s Vice Minister of Commerce, Eman Al-Mutairi, during the 8th session of the Intergovernmental Group of Experts on E-Commerce and the Digital Economy in Geneva on May 12. 

In a separate statement, UNCTAD said that Saudi Arabia has committed $1.4 million to support its work on measuring e-commerce and the digital economy. 

UNCTAD has estimated that global e-commerce sales reached over $27 trillion in 2022, based on the latest available data covering businesses in 43 developed and developing economies.

Saudi Arabia’s e-commerce sector is also witnessing rapid momentum, with 40,953 businesses registered across the Kingdom by the end of 2024, representing a 10 percent year-on-year rise. 

“This partnership with UNCTAD will further solidify the Kingdom’s leadership in the digital domain, enabling us to effectively measure and harness the vast economic potential of e-commerce for our businesses, thereby reinforcing our global competitiveness,” said Al-Mutairi, who is also the CEO of the Kingdom’s National Competitiveness Center.

She further added that the Kingdom is steadfastly advancing its ambitious transformation agenda by positioning itself as a diversified and competitive economy across economic, social and cultural spheres. 

UN Trade and Development Secretary-General Rebeca Grynspan said that measuring the actual value of e-commerce opportunities remains “a great challenge.”

She added: “Under this agreement, we will be able to develop the evidence base needed to understand the current ‘state of play’ regarding e-commerce in the Kingdom of Saudi Arabia, but also improve measurement at the global level.” 

UNCTAD said that the collaboration with Saudi Arabia consists of two tracks – domestic and international.

The domestic track will focus on assessing the degree of digital trade uptake and value of e-commerce transactions in Saudi Arabia — one of the largest economies in the Middle East.

The international track will support the work of a dedicated task group convened by UNCTAD, comprising experts from more than 25 countries and fellow international organizations.

Saudi Arabia’s National Competitiveness Center has several partnerships with international organizations to benefit from their practices and experiences in the areas of improving and developing the Kingdom’s competitiveness, and UNCTAD is one of its most important partners.

RIYADH: Saudi Arabia’s Tourism Development Fund is pursuing partnerships with global banks to secure additional financing for large-scale hospitality and infrastructure projects, as interest in the Kingdom’s fast-growing travel market intensifies. 

Speaking to Arab News on the sidelines of the Future Hospitality Summit in Riyadh, Khalid Al-Shareef, director of large institutions coverage at TDF, stated that the fund is looking beyond its own capital base and local banking partnerships to support major developments.

This comes as the fund has supported more than 2,400 direct and indirect tourism projects, representing a total investment of over SR35 billion ($9.33 billion). These initiatives are contributing to the development of more than 9,200 hotel rooms and villas across the country. 

The drive aligns with Saudi Arabia’s broader Vision 2030 objective of increasing tourism’s contribution to gross domestic product from 3 percent to 10 percent and creating 1 million new jobs within the industry. 

Al-Shareef told Arab News: “We are also bringing inbound, international banks to help us support, whether it’s equity investments or in terms of financing.” 

He added: “We look forward to expanding, and it all depends on where we are headed. We have a roadmap, which is the national tourism strategy, and wherever we find the gap, you will find us there participating.” 

The spokesperson revealed that TDF met with a couple of banks and received strong interest across the board. “The Saudi market is growing at a fast pace; the numbers are talking for themselves. So, everyone is interested to join and be part of this growth,” he added. 

According to Al-Shareef, TDF participates in projects through three key financing mechanisms: debt, equity, and guarantees in partnership with banks. He emphasized the importance of de-risking projects, particularly for small and medium enterprises. 

“Some projects have high risk, especially for SMEs. We have partnered with a couple of local banks to provide guarantees for them to mainly cater to the mass market all across the Kingdom,” he said. 

The fund also supports entrepreneurship through its TDF Grow platform, aimed at empowering startups and tour guides through education and training. 

“We have supported more than 8,800 participants, all world-class education classes from international and well-known entities to offer their courses here in Saudi Arabia,” the TDF spokesperson said. 

Beyond financing, TDF is positioning itself as a facilitator within the tourism ecosystem, simplifying processes and enhancing access to support services. 

“As we have mentioned, financial support is there, but non-financial support is also important, especially for SMEs. You have to give the right education and guidance for them to thrive and hopefully become bigger companies over time,” he said. 

Al-Shareef emphasized that the guidance component is crucial and noted that non-financial support also involves connecting SMEs with various entities. 

“Today, rather than going to 10 or 15 entities to operate a hotel or what have you, we are basically trying to be a one-stop shop that will guide you on where to go to get your licenses and permits,” the spokesperson added. 

Al-Shareef noted the diversity of Saudi Arabia’s tourism landscape, ranging from beaches in the Eastern Province and Jeddah to mountainous regions in the south and desert terrain in the north. TDF is focusing efforts on underdeveloped areas that require more government incentives. 

“Currently, we are focusing more on tier two and tier three cities. Big cities like Riyadh and Makkah are carrying themselves, especially with the banks supporting them heavily,” the spokesperson said. 

He cited Abha, Al Baha, and AlUla as examples of regions receiving increased attention to ensure more balanced tourism development across the Kingdom.