The Ministry of Industry, Commerce and Tourism launched the National eCommerce Strategy 2019-2022, which is the first of its kind in the Kingdom of Bahrain. The strategy comprises of many initiatives within the framework of the support provided by the Ministry to companies, SMEs and startups to foster the importance of practicing eCommerce and implementing its role in supporting the digital economy.
This strategy came as a result of cooperation between several government entities in order to regulate and foster eCommerce in the Kingdom, elevate the level of eCommerce standards, empower SMEs, in addition to support the local market by attracting international companies in eCommerce. The strategy is based on three main pillars: regulatory procedures, eCommerce value chain and public awareness and trust.
Due to the advance digital development in the Kingdom of Bahrain and the ICT solid infrastructure, the eCommerce has been consistently on high demand which lead to a noticeable transformation on eStores. The high demand in eCommerce is expected to increase the volume of transactions in 2022 by 16.4% which is equivalent to 48$ billion globally.
This sector is given high priority by the Ministry through developing, thorough planning and proper implementation for the selected initiatives in the strategy that will develop and regulate the sector.
The Ministry of Industry, Commerce and Tourism efforts through its Information Systems Directorate and the collaboration of the related entities is being focused to develop the eCommerce sector and has been given the highest priority aiming to develop and refresh the digital economy in the Kingdom and making the Kingdom an international hub in the eCommerce sector. Furthermore, it encourages the youth in adopting creative ideas, creating business opportunism and an ecosystem to facilitate the entrepreneur's entry in this field.
The eCommerce National Strategy aims to create an eCommerce ecosystem and make the Kingdom of Bahrain the eCommerce preferred center in the region, through developing and streamlining regulatory policies and frameworks, improving consumer confidence in eCommerce and supporting SMEs through a range of initiatives aimed to achieve the following:
- Regulating and fostering eCommerce in the Kingdom of Bahrain.
- Elevating the level of eCommerce standards.
- Empowering SMEs.
- Supporting the local market by attracting international companies in eCommerce.
- Boosting Bahrain exports competitiveness.
Key performance indicators (KPIs):
- Increase the eCommerce share in the GDP:
The world's trend for digital transformation and adoption of eCommerce as an essential part of the GDP by attracting foreign and local investments and increasing the flows of these investments, which contributes to increase GDP.
- Increase the eCommerce share within Bahrain Exports:
The increase in the percentage of eCommerce practitioners contributes to increase eCommerce share within Bahrain exports, which results to an increase in local income.
- Multiply the number of eCommerce companies:
Developing an ecosystem for eCommerce with the latest international standards, which aims to facilitate the registration of companies and their entry into eCommerce field, which will contribute to attracting a greater number of local and international eCommerce companies.
- Increase the number of women-led eCommerce businesses:
Allocating programs and initiatives to support women to facilitate their entry into the field of eCommerce.
eCommerce Barriers:
The strategy will contribute to overcoming the barriers that limits the launch of eCommerce in the Kingdom of Bahrain, which are:
- Lack of confidence in eCommerce locally.
- Lack of eCommerce related legislations.
- Limited payment methods.
- Lack of digital transformation motivation for the business owners.
- Limited logistics services.
Moreover, The National eCommerce Strategy will contribute to achieve Bahrain economic vision 2030 by linking with the following principles:
Sustainability: The economic prosperity built on a firm foundation where entrepreneurship and innovation will ensure the sustainability of the economy.
Competitiveness: Attain a high level of competitiveness in a global economy. Increased productivity comes about much more naturally in a competitive environment, driving economic growth to make Bahrain a great place to do business for both local and foreign companies.
Fairness: provide the legal and regulatory framework that ensures protection of consumers and fair treatment for business owners – including foreign investors.
