E-commerce in the Kingdom of Saudi Arabia has become a cornerstone of the modern economy. The Kingdom has witnessed remarkable progress in this field in recent years. With the increasing reliance on technology and the widespread adoption of the Internet, e-commerce has emerged as an effective means to stimulate commerce and expand market reach, which has contributed significantly to economic growth and opened up new opportunities for both businesses and consumers. Aligned with Vision 2030, the Kingdom of Saudi Arabia aspires to become a global e-commerce hub by focusing on developing digital infrastructure, empowering entrepreneurs, and facilitating online transactions.

It is not merely a platform for facilitating buying and selling; it has empowered small and medium-sized enterprises to access new markets and has enhanced customer experiences through innovative and efficient services. Moreover, e-commerce has played a pivotal role in bolstering the national economy, especially during crises such as the COVID-19 pandemic, serving as a primary channel for both businesses and consumers. By integrating e-commerce into their strategies, companies have been able to enhance their efficiency and gain a competitive edge.

Are you considering venturing into the Saudi e-commerce market? Dr. Fahad Alrefaei & Partners Consulting & Law Firm is your trusted legal partner. We provide comprehensive legal consultations to facilitate your business growth, including expansion into new markets, strategic partnerships, and the implementation of safe and compliant e-commerce strategies.

In this context, understanding the terms of e-commerce in the Kingdom of Saudi Arabia and how it contributes to sustainable development becomes crucial.

Definition of E-commerce in the Kingdom of Saudi Arabia

The E-Commerce Law in the Kingdom of Saudi Arabia defines e-commerce as an economic activity conducted wholly or partially by an electronic means between a service provider and a consumer. This activity encompasses the sale, provision, or advertising of products or services, as well as the exchange of related data, which significantly contributes to expanding both domestic and international markets, providing consumers with a seamless and secure shopping experience. In another perspective, e-commerce in the Kingdom serves as a powerful tool to support entrepreneurs and small and medium-sized enterprises (SMEs), enabling them to reach extensive markets without the need for costly traditional infrastructure, thereby enhancing their competitiveness.

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Terms of E-commerce in the Kingdom of Saudi Arabia

E-commerce in the Kingdom of Saudi Arabia is conducted by a service provider who may be either a merchant registered in the commercial registry or an individual engaged in e-commerce but not registered in the commercial registry, noting that the following terms shall be met to practice e-commerce in the Kingdom of Saudi Arabia:

- Online shop or webstore registration

A merchant shall register its online shop in the Saudi Commercial Register within thirty days of its establishment. The merchant shall submit a registration request through the Ministry of Commerce's website, including name, commercial registration number, the activities to be conducted through the online shop, and a description and address of the online shop. Additionally, if the practitioner wishes to register its online shop in the commercial register as a merchant, the request shall include the practitioner’s name, national ID number, residential address, phone number, email address, the activities to be conducted through the online shop, and a description and address of the online shop.

If you are looking to expand your business through e-commerce, Dr. Fahad Alrefaei & Partners Consulting & Law Firm is here to work hand-in-hand with you to achieve your e-commerce business goals and provide you with commercial registration services.

- Headquarter

An e-commerce services provider in the Kingdom of Saudi Arabia shall have a headquarter as specified in the commercial registry. For an individual practitioner, the headquarter is the location specified in the online shop, noting that a place shall not be considered a headquarter houses equipment and technology supporting the information system used by the service provider to conclude the contract, or because it only enables other parties to access the relevant information system.

If a service provider has more than one headquarter and has not specified one, the headquarter deemed to be the most closely connected to the contract shall prevail, taking into account the circumstances known to or contemplated by the parties at any time before or at the time of the conclusion of the contract. If an individual practitioner does not have a headquarter, the place deemed to be its headquarter shall be its permanent residence as per the national address registered in its name. The place where the individual practitioner conducts e-commerce shall be suitable for the nature and size of the activity and shall not disturb the public peace and interest.

- Disclosure of the Online Shop or webstore Data

The service provider shall disclose certain data regarding its online shop, such as name or any distinctive identifier, and address unless it is registered with an online shop authentication authority, and their contact information. The service provider shall also disclose the name and number of the registry in which it is registered, if registered in a commercial registry or other public registry. Furthermore, the service provider shall disclose the privacy policy for protecting consumers’ personal data, the scope of dealing with user profiles, and the procedures and methods for receiving and processing consumer complaints, as well as its tax number. The service provider shall make all this data accessible via a link provided on its online shop.

- Contract Conclusion

The service provider shall provide a statement to the consumer that clearly outlines the terms and conditions of the proposed contract. The statement shall include the following:

• The procedures to be followed to conclude the contract.
• Data about the service provider.
• The essential characteristics of the products or services subject to the contract.
• The total price, including all fees, taxes, or additional charges related to delivery, if any.
• Payment, delivery, and performance arrangements.
• Warranty information, if any.
• A reference to the consumer's right to terminate the contract, when permissible, the costs incurred by the consumer for such right, and the measures the consumer shall take to terminate the contract, or a reference to the cases in which termination is not permissible.
• A detailed statement of the price to be paid, such as the original price, delivery costs, and taxes, if any, in addition to any other costs that may be charged in the future, indicating the calculation thereof and the terms for their due. ‏
• After-sales services, if any, and the terms for providing them.
• The contract period and expiration date, if applicable.
• Payment terms, including recurring payments, if any, and shipping and delivery terms, if applicable.

- Issuance of a Preserved Invoice

The service provider shall provide the consumer with a preserved invoice upon the conclusion of the contract. The invoice shall include the following data:

• The name of the service provider if a practitioner, or its trade name if a merchant, and a description of the product or service subject to the contract.
• Confirmation of the conclusion of the contract and its date. ‏
• The total price of the product or service and tax value, if any, with a detailed statement of the price, indicating the calculation thereof and the terms for their due. ‏
• Shipping, transportation, and delivery charges, if any.
• Tax number of the service provider, if any.
• Delivery date of the product or the provision of the service.
• Name of the carrier responsible for delivering the product, and shipment tracking information, if any.
• A summary of the terms of replacement and return, if any and if permitted.
• Payment method and a statement of full payment if it has been made.

In this regard, Dr. Fahad Alrefaei & Partners Consulting & Law Firm provides you with comprehensive legal services in the field of e-commerce, including drafting electronic contracts, managing electronic disputes, registering on e-platforms, and obtaining the necessary licenses.

- Consumer Data Protection

The service provider shall comply with the regulations for consumers personal data protection. Any information, regardless of its source or form, that can specifically identify a consumer, such as name, identity information, address, contact numbers, license numbers, records, personal property, account numbers, bank card numbers, and still or moving images, shall be considered personal data. The service provider shall not retain the consumer's personal data except for the purpose of fulfilling the service provider's obligations, and shall not use it for any other purpose, such as advertising or marketing, without the prior express consent of the consumer. Additionally, the service provider shall protect the consumer's personal data from unauthorized access, disclosure, alteration, or processing by implementing technical and administrative measures commensurate with the nature of such data. In the event of a data breach, the service provider shall notify the Ministry, in accordance with the prescribed procedure, and the consumer within three days of becoming aware of it. The service provider shall specify the scope of the breach, its impact, and the measures taken to address it. Such notification shall not relieve the service provider of its liability to the consumer. The service provider shall comply with any regulations issued by the competent authorities in this regard.

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In conclusion, adherence to the terms for e-commerce in the Kingdom of Saudi Arabia is not merely a legal requirement but represents the foundation for ensuring the success and sustainability of businesses in the digital environment. Compliance with applicable laws and regulations, such as consumer protection, security, and privacy, enhances client trust and increases the chances of success in this competitive sector. Furthermore, respecting these terms contributes to building a strong corporate reputation and avoiding legal issues that may hinder growth. Therefore, companies and investors in the e-commerce sector in the Kingdom of Saudi Arabia shall consider such terms as an essential and indispensable part of their strategies to ensure excellence and continuity in this promising market.

Dr. Fahad Alrefaei & Partners Consulting & Law Firm Services in E-commerce

In Dr. Fahad Alrefaei & Partners Consulting & Law Firm, we provide you with comprehensive and professional legal solutions for all needs in e-commerce in the Kingdom of Saudi Arabia. With our deep understanding of the domestic market and its challenges, we draft robust electronic contracts that safeguard your brand and ensure your compliance with laws and regulations. We are your trusted partner in your journey towards growth and expansion in the e-commerce world.

For more information about services in e-commerce in the Kingdom of Saudi Arabia, feel free to contact us on Dr. Fahad Alrefaei & Partners Consulting & Law Firm via our channels of communication:

• Tel.: 920012753
• E-mail: [email protected]
• Seeking: Legal Consultation