New Mastercard study reveals rapid shift toward digital payments in Saudi Arabia

J.K. Khalil, the country manager for Saudi Arabia, Bahrain and Levant of Mastercard. (Supplied)
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Updated 15 December 2020
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New Mastercard study reveals rapid shift toward digital payments in Saudi Arabia

  • Up to 77 percent of consumers in the Kingdom spending more money online since the onset of the pandemic

A new Mastercard study on consumer sentiment and spending has revealed the rapid growth of online shopping, with 77 percent of consumers in the Kingdom spending more money online since the onset of the pandemic.

The study provides significant insights into how shoppers are rapidly moving away from cash and opting for contact-free and digital payment experiences. These insights are helping e-retailers and businesses in the Kingdom and across the region, to leverage the shift toward online shopping and to deliver fast, convenient and secure transactions.

The study found that 81 percent of consumers in Saudi Arabia consider price as integral to the decision-making process, as well as speed, with nearly 79 percent, which can often mean the difference between checking out or not. Sixty percent of shoppers said promotions and loyalty programs are important, while 56 percent of those surveyed said a good shopping experience includes an easy returns policy.

Moreover, according to the survey, groceries, healthcare, apparel and banking have seen the highest surge of online activity. More than 68 percent of Saudi consumers said they had shopped online for groceries, 73 percent for clothing, and over 65 percent of respondents said they had purchased medicine online. And, as e-commerce increasingly becomes a part of everyday life, consumers are moving other aspects of their financial management to digital, with 64 percent of respondents having started banking online. The research also reveals the rising impact of social media on consumer spending habits, with 58 percent and 61 percent of respondents saying they had discovered new sellers through Facebook and Instagram respectively.

With the surge in digital payments, businesses and online retailers are now faced with the challenge of ensuring fast, convenient, easy and secure transactions. Mastercard has been working with businesses, financial institutions and other stakeholders to advance digital payments in the Kingdom, and the pandemic has reinforced the necessity to continue evolving a safe and secure consumer payment experience.

“It is clear from the research that shoppers are rapidly moving toward online retail and opting for contact-free and digital transactions. This, in turn, is presenting e-retailers and businesses in the Kingdom, and across the region, with new challenges on how to best leverage the shift toward online shopping and deliver fast, convenient and secure transactions,” said J.K. Khalil, Country Manager — Saudi Arabia, Bahrain and Levant, Mastercard. He said Mastercard is doing its part in supporting safe online shopping for consumers.

“The focus for our customers and therefore end-users is on delivering a safe and secure digital experience. Consumers are also becoming increasingly aware of the associated risks — over half (54 percent) of those surveyed in our consumer e-commerce study said that a secure checkout was fundamental for a good shopping experience,” Khalil said.

“We continue to work hard to reduce online fraud and protect retailers from data breaches, while ensuring that consumers still enjoy a convenient buying journey. As part of this journey, we introduced tokenization, for example, which encrypts consumer data by replacing card numbers with digital tokens. It means that card numbers are not stored anywhere, which prevents improper usage and minimizes online fraud, allowing physical shoppers and e-shoppers to be confident at payment checkout points or gateways without the worry of fraud,” he added.

In October last year, Saudi Arabia introduced a new e-commerce law that was meant to unlock the country’s significant potential as a regional e-commerce hub. The Ministry of Commerce and Investment adopted the Implementing Regulations of the E-commerce Law, with immediate effect on Jan. 31, to accompany the recent shift toward electronic transactions that commerce is experiencing globally, and to help achieve the strategic objectives of Vision 2030.

The new regulations aim to (1) increase confidence in e-commerce transactions; (2) provide consumers necessary protections against fraud, deception and misinformation; and (3) boost and develop e-commerce activities in the Kingdom.

This opportunity was helped further by an affluent and tech-savvy population that sought the convenience and security of digital experiences. The Kingdom enjoys one of the highest Internet penetration and mobile usage numbers in the region. According to recent data, 74 percent of the Saudi population were Internet users in 2018 and this figure is estimated to grow to 96 percent in 2023 while smartphone users in the Kingdom are expected to grow from 19.4 million to 21.3 million.

“The potential for e-commerce in the wider MENA region right now is huge. The e-commerce market in Saudi Arabia is estimated to reach nearly $24 billion by 2026, according to ResearchAndMarkets.com. And the initial capital investment of $1 billion by Saudi Arabian Public Investment Fund as part of its 50 percent equity stake in noon.com in 2017, forever changed the e-commerce landscape in the region,” Khalil said.

Commenting on Mastercard’s latest consumer study, he said that while adapting to the “next normal,” people have been changing the way they consume entertainment and learn new skills. “In fact, 79 percent of KSA consumers said they were using the downtime as a positive learning experience. More than half of the respondents (64 percent) said they had taken a virtual cooking class, 47 percent have been mastering a new language and 26 percent have been learning to dance online,” Khalil added.

He noted that 45 percent of respondents have been educating themselves on do-it-yourself (DIY) projects, and just over a third (37 percent) said they have been learning how to film online. As people spend more time at home, the demand for online entertainment has also surged, with 73 percent of respondents having invested in entertainment subscriptions and 62 percent in online gaming.


Bosch and Juffali celebrate 60 years of partnership

Updated 30 April 2025
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Bosch and Juffali celebrate 60 years of partnership

Bosch, a supplier of solutions and services, commemorated its more than 60-year relationship with Juffali Co., one of Saudi Arabia’s largest commercial enterprises. For more than six decades, Juffali has been the representative of Bosch’s automotive aftermarket and power tools business in Saudi Arabia. This milestone was marked at Juffali’s headquarters, with attendees from both organizations, including Khaled Juffali, chairman of Juffali Co.; Per Johansson, vice president and board member of Bosch Middle East; and Haneen Al-Saleh, managing director at Bosch Saudi Arabia regional headquarters.

Speaking on this long-standing partnership, Johansson emphasized the mutual trust, shared values, and strong cooperation that have strengthened Bosch and Juffali’s relationship over the past six decades. “As we recognize our partnership with Juffali, I am happy about our ongoing successful collaboration and joint accomplishments. This enduring relationship enabled us to deliver innovative solutions to our customers following our company’s claim ‘Invented for life.’”

Al-Saleh added: “The 60-year partnership with Juffali underlines our strong collaboration and commitment to progress. By combining our strengths, we continue to support Saudi Arabia’s industrial growth and contribute to the realization of Vision 2030.”

“We at Juffali are committed to supporting Saudi Arabia’s Vision 2030, which aims to diversify the economy and foster growth across various sectors. Our collaboration contributes to key aspects of the vision, including infrastructure development, industrial expansion, and technological innovation. We aim to continue building on our successful history and delivering value to our customers in the Kingdom,” said chairman Juffali.

The ceremony was also attended by notable figures, including Ali Dulaim, group CEO of Juffali Co.; Dana Juffali, board member of Juffali Co.; Husni Rifai, CEO of JTECO; Faisal Charara, group CFO of Juffali Co.; and Mate Muskat, CFO of Bosch Group Middle East.

With more than 12 million vehicles in Saudi Arabia, the demand for repairs and replacement parts is booming. This surge has fostered the growth of independent garages and service chains offering cost-effective alternatives. Additionally, e-commerce platforms specializing in automotive parts are revolutionizing distribution channels, thereby enhancing consumer access to an extensive range of products.

Bosch has successfully introduced state-of-the-art technologies and premium components, such as advanced engine parts and diagnostic tools. Together with Juffali, investments in technician training have equipped workshops with the skills needed for modern vehicles, particularly as automotive technology continues to advance. The partnership also supports independent workshops through the Bosch Car Service Concept, contributing to a stronger automotive repair infrastructure in the Kingdom.

Saudi Arabia’s ambitious Vision 2030 and significant investments in giga-projects have fueled unprecedented growth in the construction sector. With large-scale developments reshaping the nation’s infrastructure, the demand for high-performance tools is at an all-time high. Bosch’s professional power tools and accessories are essential in driving efficiency and precision across these transformative projects.

Bosch Middle East and Juffali earlier this year expanded their long-standing partnership into the home appliances industry through a strategic distribution agreement between Juffali Home Appliances and BSH Middle East. This alliance will grow the presence of Bosch home appliances across Saudi Arabia.


Diriyah Company inks deal with GoZahid to promote ‘City of Earth’

Updated 30 April 2025
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Diriyah Company inks deal with GoZahid to promote ‘City of Earth’

Diriyah Company has signed a travel trade agreement with Saudi travel brand GoZahid to further promote Diriyah as a premier global cultural and tourism destination.

The announcement comes as Diriyah Company is participating in the Arabian Travel Market trade show in Dubai, which runs until May 1, featuring GoZahid as a trade partner. GoZahid is joined alongside other major trade partners at Diriyah Company’s booth including Athaar Arabia, Abercrombie and Kent, 88 Destinations, Tetrapylon, and Bonjour Saudi.

The collaboration will build on its existing success as a destination that has already attracted more than 3 million visits since opening its UNESCO World Heritage site of At-Turaif and the Bujairi Terrace dining precinct in December 2022, as well as its first hotel — the 134-room Bab Samhan, a Luxury Collection Hotel, in December last year.

Under the agreement, Diriyah Company and GoZahid will collaborate to promote Diriyah, known as the “City of Earth,” to inbound cultural travelers. Their partnership will focus on enhancing destination marketing, training tour operators, hosting destination workshops, and developing training manuals for tour guides.

Diriyah Company Group CEO Jerry Inzerillo said: “We are delighted to have signed a travel trade agreement with GoZahid, a long-established and internationally recognized travel house in the Kingdom. Our collaboration will help ensure that travelers have an unforgettable cultural experience visiting ‘The City of Earth’ as we continue to develop one of the world’s gathering places with centuries of history at its core.”

Daniel Ponzo, group managing director at Zahid Travel Group, said: “We are incredibly proud to partner with Diriyah Company to bring the story of Diriyah to life for travelers from around the world. This collaboration is a testament to our shared commitment to cultural authenticity, exceptional service, and meaningful travel experiences. Together, we look forward to welcoming the world to this extraordinary destination and supporting its continued rise as a global icon.”

Diriyah Company’s travel partner agreements aim to position Diriyah as an emerging must-visit destination on the global tourism map, leveraging the expertise of world-class, specialized partners.

With plans to develop many of the world’s leading global hotel brands, the Royal Diriyah Opera House, and the 20,000 seat multi-purpose Diriyah Arena, among many other tourism assets, Diriyah, situated on the outskirts of the capital city of Riyadh, is set to become one of the greatest gathering places in the world.


Alshaya Retail Academy launched to train Saudi youth for job market

Updated 30 April 2025
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Alshaya Retail Academy launched to train Saudi youth for job market

Alshaya Group, one of the world’s leading international retail franchise operators, announced the launch of the Alshaya Retail Academy to train young Saudi men and women on the latest retail industry concepts and practices, in the Kingdom. The academy has been launched in partnership with several leading government entities, including the Human Resources Development Fund. 

By providing newly employed Saudi nationals with essential hands-on and theoretical training, Alshaya Retail Academy will directly contribute to the goals of Saudi Vision 2030. This initiative not only prepares youth for successful retail careers but also strengthens the national economy by enhancing their competitiveness in the global job market. The launch of the academy aligns with Alshaya’s continued commitment to the region, especially with the opening of The Avenues in Riyadh and Alkhobar, creating additional opportunities for local talent and contributing to the Kingdom’s growing retail sector. 

The inaugural event was attended by Executive Chairman of Alshaya Group Mohammed Alshaya, CEO of Alshaya Group John Hadden, Deputy General Manager for Business at the Human Resources Development Fund Firas Aba Alkhail, Assistant Deputy Minister at the Ministry of Commerce Muhammed Al-Melhem, Assistant Deputy Minister for the Localization of Tourism Ibrahim Jubairi Gharwi, Assistant Deputy Governor of the Technical and Vocational Training Corporation Abdul Rahman Al-Marwani, and Assistant Director General of the General Directorate for Private Sector Training Khalid Al-Nasser.

The attendees emphasized the importance of this initiative in enhancing the participation of Saudi youth in the labor market, which is essential to driving sustainable development and boosting economic growth in the Kingdom.

The academy offers comprehensive training programs, including one-month development courses, as well as three-month qualification courses. These programs combine theoretical and practical training, enhancing trainees’ opportunities to acquire market-ready skills that align with the rapid developments occurring in the retail sector in the Kingdom.

“At Alshaya, we believe in the importance of empowering Saudi youth by equipping them with the knowledge and skills necessary for their professional growth. We are committed to providing them with comprehensive and integrated training opportunities that will help them thrive in the retail sector. This initiative aims to build a national workforce capable of adapting to the rapid changes occurring in the market, in line with the goals of Saudi Vision 2030,” said executive chairman Alshaya.

Abdullah Faisal, regional people director at Alshaya Group, said: “At Alshaya Group, we are deeply committed to providing the best opportunities for all Saudi citizens, whether in employment or training. We take great pride in our established record of employing national talent and continuously strive to expand the opportunities available to them. Through the Alshaya Academy, we aim to empower our youth by equipping them with the essential skills needed to thrive across various sectors, while providing them with the tools necessary for success in the workforce, in alignment with Saudi Arabia’s Vision 2030. We are confident that the Alshaya Academy will serve as a cornerstone for developing talent and helping realize the aspirations of an ambitious generation dedicated to excellence and innovation, in collaboration with leading government bodies.” 

Alshaya was recently awarded by the Saudi Ministry of Human Resources and Social Development as a leading company in parallel training and feminization. “This recognition underscores our commitment to gender diversity and the empowerment of Saudi women in alignment with Saudi Vision 2030,” Faisal added.

Currently, Alshaya runs professional training and mentoring programs to ensure that Saudi nationals develop the skills they need during their career path. The company has successfully attracted around 4,000 Saudi females to work in world-leading brands such as Starbucks, The Cheesecake Factory, Shake Shack, Raising Cane’s, H&M, American Eagle, Victoria’s Secret, Bath and Body Works, and Foot Locker.


Almana Hospitals CEO named ‘Future Leader of the Year’

Updated 29 April 2025
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Almana Hospitals CEO named ‘Future Leader of the Year’

Mana Almana, CEO of Almana Hospitals, received the “Future Leader of the Year Award” from the Council of Health Insurance, recognizing his exceptional leadership and contributions to innovation and development in the healthcare sector.

This honor was bestowed during the third edition of the CHI Excellence Award ceremony, organized by the CHI under the auspices of Minister of Health Fahad AlJalajel. The event recognized leaders in the Kingdom’s healthcare sector and institutions that have excelled in delivering top-quality and efficient services.

The award stimulates creativity and innovation in the private healthcare sector and promotes digital transformation and technology to improve healthcare services.

“It is a great honor to receive this recognition, which I consider an additional incentive to continue contributing to the healthcare sector in the Kingdom,” Almana said, thanking the CHI and the judging panel for their confidence in him.

He added: “This award, which celebrates leadership potential, innovation and initiative, professional achievements, contributions to patient care, collaboration, and teamwork, is essentially a tribute to the encouraging and supportive environment within Almana Hospitals, and to the opportunities I have been given to contribute and develop.”

Almana said that actual milestones are not achieved by individual effort, but rather by collective work and constructive cooperation. Therefore, he dedicated this honor to every member of the Almana Hospitals team, who he said have played a significant role in supporting him in serving patients and continuously sought innovative solutions to improve their experience.

Almana praised the role of the CHI in organizing the award, as well as its contribution to motivating the private healthcare sector toward innovation and development.

Almana Hospitals is the largest medical institution and healthcare provider in the Eastern Province. It has contributed to a qualitative shift in healthcare services, aligning with Saudi Vision 2030, which aims to improve the quality of life for citizens and residents.

The CHI is dedicated to honoring healthcare facilities that contribute to developing and improving the quality of healthcare services in the private sector. 

This is achieved through awards focusing on innovation, efficiency, and quality. The awards aim to enhance competitiveness among healthcare providers in the Kingdom. These institutions provide healthcare services in line with international quality standards, underscoring their commitment to developing the private healthcare sector in the Kingdom.


GIB sponsors Saudi golfer Faisal Salhab

Updated 29 April 2025
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GIB sponsors Saudi golfer Faisal Salhab

Gulf International Bank has announced its official sponsorship of Saudi professional golfer Faisal Salhab, underscoring the bank’s commitment to supporting professional sports both locally and internationally.

Commenting on the partnership, Abdulaziz Al-Helaissi, group CEO of GIB, said: “We are proud to sponsor one of Saudi Arabia’s most prominent golfing talents. Faisal is a dedicated athlete and a role model for many young Saudi golfers who look up to him. Our partnership with Faisal is part of GIB’s ongoing support to the development of sports in the Kingdom, one of Saudi Arabia’s Vision 2030 goals, and assisting Faisal succeed in his path to becoming a leading professional in golf.”

Khaled Abbas, CEO of GIB Saudi Arabia, highlighted the importance of the sponsorship, describing it as “a genuine boost for Saudi sports and the professionalization efforts supported by the Kingdom as part of its ambitious plans to enhance and grow sports participation at all levels.” He added: “We are excited to undertake this sponsorship, which alongside similar initiatives, will contribute to advancing the three pillars of Saudi Vision 2030: a vibrant society, a thriving economy, and an ambitious nation.”

Salhab expressed his pride in the collaboration, saying: “I am honored to become a member of the GIB family. I look forward to representing the bank, both within the Kingdom and internationally, and to contributing to elevating Saudi Arabia’s presence on the global stage.”

The partnership will also feature Salhab’s participation in a range of community events, to be organized by GIB, further enhancing the bank’s ongoing efforts in community involvement and corporate social responsibility, in addition to promotional engagements involving GIB’s customers and employees.