Arab News, Thursday, Mar 18, 2021 | Shaaban 4, 1442
Amazon to create 1,500 new jobs in Saudi Arabia
Saudi Arabia:
Amazon plans to hire 1,500 new employees in Saudi Arabia and add 11
buildings, the company said.
The expansion will boost storage capacity in the Kingdom by 89 percent and its
geographical delivery network by 58 percent.
The global conglomerate currently operates three warehouses – known as
fulfillment centers – in Riyadh and Jeddah, 11 delivery stations and two sorting
centers. By the end of the year, this will be increased to six warehouses and 13
delivery stations. Eleven brand new buildings will be added to the network,
while some older facilities will be closed or upgraded.
Amazon’s investments this year will achieve an enhanced storage capacity
delivered through a pipeline of new openings, closure of older buildings, and
upgrades designed to deliver a smarter, faster and more consistent experience
for customers. By the end of 2021, Amazon’s fulfillment network will reach
across a total floor area of over 867,000 square feet.
The Seattle-based company is also partnering with Saudi Post and a network of 10
service partners.
“These new investments reiterate our commitment to Saudi Arabia, contributing to
the local economy through the creation of new job opportunities. Our investments
in technology and infrastructure align with Saudi’s digital transformation
goals, enabling world-class fulfillment offerings to our independent seller
partners, and faster delivery on an expanded product selection to our
customers,” Prashant Saran, director of operations for Amazon Middle East and
North Africa, said in a statement.
The company did not reveal the value of the new investment in Saudi Arabia or a
breakdown of current staff numbers. The e-commerce market in the Kingdom has
surged in the wake of COVID-19, as people were forced to stay at home and do
their shopping online.
According to figures by research firm Statista, e-commerce revenue in Saudi
Arabia is set to reach $7.051 billion this year and grow at an annual rate of
5.38 percent to reach $8.697 billion by 2025. The largest segment for consumers
is fashion and the average revenue per user is estimated at about $248.69.
A survey of 900 online Saudi shoppers late last year by advertising platform
Criteo found that 58 percent of Saudi respondents said they felt more
comfortable shopping online than in-store. When it comes to service
considerations, 35 percent of respondents said the shipping cost was a big
factor in their decision-making process.