Factors contributing to the growth of personal computers sale in Saudi Arabia include; the increased use of internet by both businesses and consumers, the increased use of e-commerce, lower subscription fees for internet services, lower costs for local phone calls, the introduction of computers in Saudi schools as per the request of HRH Crown Prince Abdullah Bin Abdulaziz and the increased use of long distance calls over internet which is called the Voice Over Internet Protocol (VOIP).
The price for a computer unit depends on the country of origin. An Average US made personal computer costs between $1200 to $2000. However, the average price for a complete workstation made in Far East and assembled locally, including a monitor, key board, CPU, printer, speakers, microphone, scanner, computer table and camera is only about $800. In other words computers are presently sold at a very affordable price to Saudi consumers.
Saudi Arabia is mainly dependent on imports of computer hardware, accessories and parts. The major competition is comes from small assembly facilities operated by most computer shops. The assembly operation is taken place in the shop. The personal computers produced by this type of operation benefit from low cost parts leading to low price products. Locally assembled computers suffer from poor after-sale-service.
The commercial agency regulations of Saudi Arabia govern distribution relationship between supplier and importer. Such agency agreements should be registered with the local Chamber of Commerce and Industry, as well as with the Ministry of Commerce.
There is a general rule under the Saudi law which allows only Saudi companies to submit bids for government contract tenders.
This site was last updated 31 March, 2009