25/09/2013
At the first meeting of the East Commercial Forum 2013
Demands to rely on the free market and regulation of e-commerce
AlAujan: procedures for exporting countries pushed food prices to rise
AlBallaa: the lack of clear policies held e-commerce in the Kingdom
The Managing Director of Al muhaidib food Company Badr bin Hamed Al aujan said that high global prices recorded direct effects on domestic prices, even though from a commodity to the other, and that the main causes of this rise or fluctuations in prices is the Government action in the exporting countries. Aujan said in a working paper entitled (high world prices and its impact on the domestic market) were displayed under the first meeting for the Eastern Trade Forum organized by the Chamber Headquarters under the auspices of the Governor of the Eastern Province, his Royal Highness Prince Saud bin Naif Wednesday 25 September 2013, the amount of stock in a series of product (even in the source) is an important factor to alleviate the immediate impact of rising global prices, as large stocks, the effect of the height is limited.
Speaking in his paper that AIs on the causes of rising food prices in the local market said that food is influenced by natural variables such as earthquakes and natural disasters disrupt the supply and demand equation, the price raises. But there are measures taken by the Government of exporting food contributed to their rise in the same market and in the local market, for example, the Government of India has taken a surprise by preventing the export of rice, wheat, and put tax on Basmati rice, this was the cause of the high price. As we have seen during the boom period of high prices that some exporting countries decided to increase strategic stockpile, thus exacerbating the crisis reduced the size of the displayed Some States also adopted resolutions indirectly it has had an active role in the price rise, for example, found that Brazil decided to increase ethanol in motor fuel, ethanol is produced from sugarcane, which contributed to the increased production of sugar cane at the expense of other products, view the rising price tag. As for the high level of demand for meat in China, where meat consumption increased 4 times in 30 years, and is the consuming of meat production, the increase in demand for feed, farmers turned towards feeding account other than agricultural products, and that increased the prices. Aujan stressed the importance of consolidating the fundamentals of a free market, left to free competition, it would ensure fair price, experience has shown that trying to put a ceiling on prices in response to high world prices lead to disruption of the market, and the departure of some players, which will result in the short term to inventory shortages and monopoly at the intermediate level.
In the second paper Rashed Albalaa from national initiatives speaks about (role of electronic commerce in business development in Saudi Arabia), said that e-commerce in the Kingdom remains limited compared to global markets such as America and China, but in the Kingdom have viable, reviewed a number of factors which give a positive picture for the future of e-commerce in the Kingdom, perhaps most notably the rapid spread of the Internet, the higher the prevalence of cell phones and smart phones in particular, and the clients directly to the Web which may contribute to the growth of trade, noting that Saudi society is one of societies that publish everything online, especially for the sale and purchase, so the announcement of some goods purchased, and experiences with others to motivate buyers purchase, increasing the rate of e-commerce.
The benefits of electronic commerce for business access to new areas and segments of society, grow faster and at lower cost. And increase profit margins through direct access to the client without arguments, knowing that customer satisfaction and sales information is provided in real time, to ease the work offers and marketing campaigns. There is also potential to expand beyond the Kingdom, business protection from foreign competition and many other advantages, in a more secure browsing .yet there are a number of obstacles to e-commerce in the Kingdom, most notably the obstacle at the beginnings and the absence of clear policies and the absence of support systems, although these systems are improving, still there is lack of infrastructure (Payment - Delivery - ... etc).
