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Is Online Selling Allowed in Saudi Arabia

eCommerce is definitely permitted in Saudi Arabia! If someone decide to start ecommerce businesses in the Kingdom of Saudi Arabia, you must follow certain rules.

Compliance with the Saudi Arabian Electronic Commerce Law (Royal Decree No. M / 126 as of July 10, 2019) and some other rules are required by the ecommerce (Saudi Arabia) laws:

1. Get yourself registered.

If your company is based in Saudi Arabia and sells goods or services online, you must register your website with the Ministry of Commerce. During the registration process, you will be asked to provide some important information about your company, such as your commercial registration information, the nature of your e-commerce activities, and a detailed description of your website and its location.

It's also critical to keep the Ministry up to date if your business details change, and to cancel your registration if you decide to stop operating your ecommerce site.

2. Ensure that your payment systems have been approved.

Payment systems approved by the Saudi Arabian Monetary Authority (SAMA) must be used by e-commerce businesses. The Saudi Arabian Monetary Authority ("SAMA") implemented the Payment Service Provider Regulations ("PSP Regulations") in January 2020 to govern payment service providers operating in KSA. According to the PSP Regulations, only payment service providers with a SAMA license are permitted to provide payment services.

3. Obtain a License.

The Saudi Arabian ecommerce laws require a licence from the Ministry of Investment (MISA). If you are unsure which documents are required, you can always contact the Ministry of Commerce for registration, and they will also guide you through the licencing process. SAR 2,000 ($533) will be the initial cost. You would have to wait two to three weeks for the license to be issued.

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