DAMMAM — Basic infrastructure for modern IT and communications in many countries has facilitated a quantum leap in economic activities, particularly online trading. It has also deepened the competition between the traditional and electronic trade outlets. E-commerce has become widely popular around the world. Many people prefer this type of transactions when dealing with other individuals and trade establishments. However, the concept of e-commerce is still not widely spread in the Kingdom despite the rising number of Internet users. E-commerce in the Kingdom still needs a number of basic elements including powerful and safe communications, safe electronic payments and good postal services. Fears that websites might be hacked are among the obstacles facing e-commerce in the Kingdom, in addition to the scarcity of cadres specialized in the establishment of specialized Web portals. Considered one of the low-cost trade activities, e-commerce helps young men and women wishing to enter the world of business to start up small online projects with minimum investments. However, the lack of strong protective measures is putting off young people from entering this kind of trade. According to experts, legislation governing e-commerce in the Kingdom is incomplete and far from being effective at present. They believe that the Kingdom should draft a number of rules and regulations to boost e-commerce. Furthermore, many people and establishments lack sufficient awareness of this new trend. Regardless, there were many successful e-commerce experiments in the Kingdom, proving their investment feasibility. The electronic advancement of Saudi society encouraged a number of foreign investors to establish electronic sites to market their products in the Kingdom. The experts also believe that many Saudi individuals prefer to deal directly with service providers. They feel that direct contact with service providers would reassure them. The lack of trust in e-commerce, according to these experts, has impeded its growth in the Kingdom. They believe that this lack of trust and the weak rules and regulations were the main causes that hindered e-commerce from properly flourishing. Dr. Falih Al-Sulaiman, undersecretary of King Fahd University for Petroleum and Minerals (KFUPM) for industrial relations, believes e-commerce is the solution for the people wishing to enter into the world of trade but have little funds. He said: "The e-commerce investor can easily reach the largest number of customers all over the world for little or no cost at all." "However, customers are skeptical of doing trade on the Internet." Al-Sulaiman called for spreading awareness about the significance of e-commerce and said proper legislation should be drafted to build confidence in electronic trade. He asked the departments such as the Commerce Ministry and the Saudi Arabian Standards Organization (SASO) to regulate e-commerce and provide it with effective security systems. He said though it was still in its embryonic stage, e-commerce has encouraged Saudi women to practice it through the marketing of small projects from their homes. Abdul Rahman Al-Wabil, secretary general of Asharqia (Eastern Province) Chamber of Commerce and Industry, said the rules and regulations governing e-commerce in the Kingdom were not enough to encourage individuals and establishments to enter into this kind of trade. He, however, said some e-commerce experiments were successful. “E-commerce is characterized by low costs and quick interaction with customers. The Kingdom is among the first countries that were ready for this type of trade but has not enacted sufficient legislation to encourage it." Abdul Wahab Al-Qahtani, professor of strategic management and human resources development at KFUPM, said Saudis were still used to dealing directly with businesses and perceive e-commerce to be a type of indirect trading. He said if protected by legislation, e-commerce could greatly contribute to the national economy. “So far the competition between electronic and traditional types of trade is still being won by the latter. “However, with continued improvement of its environment, e-commerce will soon pick up and become an important economic activity." Fadl Al-Boainain, an economist, said e-commerce has not spread properly despite extensive use of the Internet in the Kingdom. He, however, expected this trade to witness a giant leap by 2015. He said more women than men were trading online and said in order for e-commerce to flourish, a strong and secure system of communications must be established.
