The value of the country’s e-commerce market is expected to triple by 2022 as more companies in Qatar adapt to digital technology. The Ministry of Transport and Communications (MoTC) has therefore issued the Comprehensive Guidelines for E-Commerce, the first of its kind in the Arab region, and which aims to further boost the domestic e-commerce sector.
The recent ‘E-Commerce Forum Qatar 2018’, organised by MoTC, discussed the latest trends and developments in e-commerce both in Qatar and worldwide, with local, regional and international experts in e-commerce.
The meeting was attended by major corporations and government entities in Qatar, including Sheikh Abdulla bin Saoud al Thani, Governor of Qatar Central Bank and Akbar Al Baker, CEO of Qatar Airways Group, as well as representatives from MoTC. There were also attendees of e-commerce companies from Switzerland, Malaysia, Belgium and Turkey, who presented their ideas and experiences at different sessions of the event. The accompanying roadshow saw the participation of 22 local e-commerce companies.
Speaking at the event, Jassim bin Saif Al Sulaiti, Minister of Transport and Communications, commented that the e-commerce market in Qatar has recorded robust growth and is estimated to be at USD1.3 billion.
He said that the use of e-commerce among consumers has increased from 14% in 2016 to 20% in 2017.
Now, more and more companies are seeking to provide e-commerce locally, especially in the service sector, and the pace is growing as private car transport, food delivery and local car services become easier and more efficient.’
Reem Mohammed Al Mansouri, Assistant Undersecretary for Digital Community Development Affairs at MoTC, said the e-commerce market in Qatar is a promising market, but is still facing some challenges. However, the Ministry has implemented the first e-commerce portal to promote e-commerce and best practices in this sector, and conducted surveys and reports to provide valuable information to those involved in e-commerce.
Globally, e-commerce transactions reached USD2.2 trillion in 2017. A study by MoTC showed that of the USD1.3 billion of e-commerce transactions in 2017 in Qatar, only 33% was conducted by local SME, with the remaining 67% by international traders. The Ministry wants to raise the domestic share of e-commerce to 70% by 2022, increasing the value of e-commerce transactions by local SME to USD3.2 billion.
The new guidelines have been designed to help merchants at every step of the e-commerce process, from start-up through to implementing a successful e-commerce business. The guidelines are the result of a collaborative effort between local, regional, and international stakeholders across the entire e-commerce value chain, and cover everything from creating the product to consumer receipt.
Local companies are developing innovative solutions based on the individual needs of consumers in Qatar and to ensure the e-commerce sector increases in value. Businesses are starting to see the major benefits of e-commerce: better access to consumers; improved business efficiency; better trade and investment avenues; the lower cost of sale and higher profit margins; lower workforce and staffing costs; and higher conversion rates.
Qatar has the opportunity to create an environment conducive to e-commerce, by including the strong and secure telecommunications and IT infrastructure network already in the country. It has been shown that there is a high-income population with high levels of digital penetration, with smartphone use at more than 94% and internet use at 100%, according to comments made by the Minister at the forum.
The ministry is currently working on the Trustmark Project for E-Commerce Enterprises to boost consumer confidence in the local e-commerce sector, which should be available by the end of the year. At the same time, the ministry is also working on developing strategic partnerships with local and international entities to help local SMEs expand their markets and access the latest technologies.
HE Al Sulaiti stated that the spread of e-commerce increases its contribution to economic development, providing better corporate access to consumers, improving business efficiency, expanding trade and investment opportunities, and fostering innovation, diversity and competitiveness.
Reports have shown that the GCC region has a rapidly growing market, with a generally wealthier population and an increased use of the internet and smartphones. As such, some retailers have launched Arabic-language websites to attract these consumers. These three factors mean that the GCC, and therefore Qatar, could become bigger participants in e-commerce in the near future, particularly in mobile commerce (m-commerce).
But Qatar is already showing great progress. Due to local improvements and expansion in this sector of commerce, as well as Qatar’s efforts in the field of digital technology, international classifications of Qatar in electronic commerce rose 15 ranks compared to 2015, according to the report of the United Nations Conference on Trade and Development (Unctad 2017).
For more information about the e-commerce guidelines, or to learn how to best utilise e-commerce in Qatar, visit motc.gov.qa and ecommerceqatar.qa.
Turkish Souq
Qatar Post (Q-Post) and Turkish Post (PTT) have launched the first e-commerce platform, called ‘Turkish Souq,’ for Qatari residents. According to HE Al Sulaiti, the Turkish Souq will provide access to up to five million Turkish products.
Qatar and Turkey are strategic trading partners, with trade ties having grown as a result of the blockade since 5 June 2017.
An international shopping and shipping service is available, with products coming directly from Turkey to customers’ doorsteps in Qatar. For more information, visit turkishsouq.qa.
Author: Sarah Palmer
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