Impact of wholesale trade digitalization on Saudi economic growth: Reality and prospects

Abstract

Digitalization concerns almost all economic spheres, significantly changing their operational methods. It has become highly necessary to enhance competitiveness and contribute to economic growth. This study aims to evaluate the digitalization rate of the wholesale sector and identify its impact on economic growth in Saudi Arabia. It contributes to the recent scarce literature analyzing specifically the effectiveness of the digital transformation of the wholesale trade sector in the economy. This research work highlights the importance of digitalization in achieving economic objectives, investigates the digitalization of Saudi wholesale trade, and provides a comparative study before and during the adoption of digitalization in the Saudi wholesale sector. The evolutionary impact of digitalization in the Saudi wholesale sector on economic growth, assessed by GDP, has been stated and analyzed. The findings show that the wholesale trade sector is undergoing a continuous digital transformation, changing its business operating model, whereas the impact on economic growth remains moderate. The considerable efforts deployed by the Saudi government in the field of digitalization, as well as the implementation of suggested measures, constitute an advantageous framework for the economy to achieve the targeted growth objectives.