LONDON: The online “Arabic-first” shopping platform Noon.com has launched in Saudi Arabia, aiming to carve out a share in what is still a relatively nascent market for e-commerce.
Noon is a joint venture between Emaar Properties chairman Mohamed Alabbar, Saudi Arabia’s Public Investment Fund and the Kuwaiti franchise operator MH Alshaya. It initially launched in the UAE in October. The Saudi market offers significant growth potential to online retailers, analysts say, given the low proportion of the population who regularly shop on the internet rather than in the Kingdom’s shopping malls.
“KSA is a key market for online retail,” said Euromonitor analyst Rabia Yasmeen, adding that the online share of the total Saudi retail market is around 1.4 percent.
Norma Taki, head of retail at PwC Middle East, added: “Our 2017 Total Retail survey results show that 27 percent of shoppers in KSA like to shop online monthly versus 45 percent who shop only a few times a year.
“This highlights that there is a huge opportunity for market entrants such as Noon.com to come in and capitalize on the young population and the tech-savvy end consumer the KSA market has to offer.”
Noon went live at midday on Dec. 12. It is headquartered in Riyadh and offers products across a wide range of sectors including beauty, fashion, electronics, home and kitchen and groceries. Shoppers can make purchases online or via a downloadable app.
“Noon brings a dynamic, locally-driven and customer-oriented digital marketplace to the Kingdom serving the community and offering a new retail and much-improved experience,” said the founder of Noon, Mohamed Alabbar.
“With talented young Saudis driving its operations, along with being powered by Saudi and regional retailers showcasing their amazing products, the platform also offers Saudi entrepreneurs, including startups, to be part of a fast-growing digital ecosystem.”
Noon will be a competitor to Souq.com, which was acquired by global online giant Amazon in March. Souq already operates in Saudi Arabia, Bahrain, Kuwait and Egypt.
This month Souq launched Amazon Global Store, which allows customers in the UAE to purchase products from the US-based Amazon.
The Middle East is set to be one of the fastest-growing regions globally for e-commerce, according to BMI Research. It predicted sales to double to at least $48.8 billion by 2021, in a research note published in September.
This growth is partly due to the high proportion of young consumers, BMI said, with all the Middle Eastern countries it ranks having more than 30 percent of its population aged between 20 and 39 years old.
The UAE still dominates the regional online market, it said, with and sales in the UAE will reach $9.7 billion in 2017, rising to $23.3 billion by 2021.
Saudi online retail market heats up with Noon.com launch
Saudi online retail market heats up with Noon.com launch
Foreign ministers chair Saudi-Omani coordination council meeting in Muscat
MUSCAT: Saudi Foreign Minister Prince Faisal bin Farhan met with Oman’s Foreign Minister Sayyid Badr bin Hamad Al-Busaidi on Monday.
They reviewed bilateral relations between their nations and ways to enhance and develop them across various fields. Additionally, they discussed regional and international developments.
The ministers co-chaired the third meeting of the Saudi-Omani Coordination Council in the Omani capital, Muscat, with the participation of the heads of the Council’s subsidiary committees and the two heads of the Council’s General Secretariat teams.
The meeting comes as an affirmation of the keenness of Saudi and Omani leaders to strengthen ties and advance them toward greater prosperity for both nations.
In his remarks during the meeting, Prince Faisal affirmed that gathering builds on the previous council meeting, held last year in AlUla, and on its positive and fruitful outcomes within the framework of the approved recommendations and initiatives.
He stressed the importance of continuing the work of the council’s subsidiary committees to complete the necessary procedures to implement the remaining initiatives, and of the General Secretariat’s role in follow-up and in addressing any challenges that may hinder implementation.
He also underscored the importance of developing and enhancing trade relations, stimulating investment, and strengthening cooperation between the public and private sectors.
He also praised the ongoing work to establish and launch the Coordination Council’s electronic platform, which aims to connect all committee work and initiatives to facilitate follow-up on the Council’s progress.
Al-Busaidi affirmed in his remarks the qualitative progress in relations between the two countries and the notable development witnessed across numerous sectors toward achieving economic integration and enhancing intra-trade and joint investments.
The Omani foreign minister also highlighted deeper cooperation in the security and judicial fields, as well as the cultural and tourism sectors, noting the advanced and continuous political cooperation, consultation, and coordination on regional and international issues.
