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Jeddah Chamber

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Jeddah Chamber
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Jeddah Chamber, or Jeddah Chamber of Commerce, is the first chamber of commerce in the Kingdom of Saudi Arabia, established by a Royal Decree issued by the Founding King Abdulaziz Bin Abdulrahman Al Saud in 1946, and its headquarters is in the city of Jeddah.

History and pioneering of Jeddah Chamber

As the first chamber of commerce and industry in the Kingdom, the Jeddah Chamber has taken the initiative to serve economic activity and raise awareness among traders and industrialists. In 1948, it published the first magazine, "Commerce Magazine," to serve as a communication platform between the chamber and its members. In 1951, the Jeddah Chamber was the first among the chambers of commerce in the Kingdom to conduct elections for its board of directors. In 1961, it established the committees of finance, administration, rights and laws, public relations, and foreign relations, becoming the first to do so among chambers in the Kingdom.

In 1978, Jeddah Chamber launched the first credit sales network, (Aman Network), for buying and selling cars and trucks on installment. In 1979, it established the first research and studies center in the Saudi chambers. In 1980, it created the first internal electronic and economic information network. The same year, it established the first economic information center across commercial chambers.

Continuing to adapt to the economic landscape, in 1981, the Jeddah Chamber was the first to set the system for establishing the Council of Saudi Chambers. That same year, it also created the first economic library, and the first specialized training center, "Jeddah Training Center", among chambers in the Kingdom. In 1982, it set up the first computer center among chambers in the Kingdom, and that year, Jeddah city became the first specialized city for warehouses in the Kingdom. Additionally, the chamber held the first conference for Arab businessmen and investors in Taif and created the first fund for private contributions, which is the first of its kind at the level of chambers of commerce. In the same year, it opened its first representative office in Cairo.

Jeddah Chamber has led the way for chambers of commerce in the Kingdom in administrative organization and event management. In 1989, it organized the first exhibitions and conferences center, and in 1991, established the first marketing council, "Jeddah Marketing Council". By 1992, it was the first to support and empower women's participation, granting them the right to vote in board elections. In 1994, it created the first department for small and medium enterprises in the Kingdom, and in 1995, it implemented internal organizational tasks through project management.

In 1998, the chamber organized the "Jeddah is Different" festival, the first tourism festival in the Kingdom. In 1999, the first global conference was organized in collaboration with Harvard University. In 2001, the chamber organized the first employment day forum to assist job seekers with companies. In 2003, it held the first industrial forum to support industrial establishments in the Kingdom.

In terms of empowerment, the Jeddah Chamber was the first to include four women in its board of directors and the first to allow women to chair committees at the level of chambers in the Kingdom in 2005. That same year, it established the first fund to finance small and emerging enterprises and start-ups at the level of chambers across the Kingdom. In 2008, it was the first chamber to organize an environmental forum, and in 2016, it became the first chamber to have a commercial register.

Evolution of Jeddah Chamber's operations

In alignment with the development of the business sector and contributing to the diversification of investment, economy, and industry in the Kingdom, the Jeddah Chamber has dedicated its efforts to enhancing the capabilities of the private sector to support developmental renaissance, prepare for current challenges, adapt to future changes in the business environment, and activate and stimulate its role in national development plans. Additionally, the chamber aims to increase the private sector's contribution to the non-oil gross domestic product (GDP).

Jeddah Chamber has undergone numerous developments and expansions in both administrative and organizational aspects to improve services for its members. Notable indicators of this growth include its expansion into various governorates in the province, offering services to business owners through branches in Rabigh, al-Lith, and al-Qunfudhah. In 2011, the chamber launched the Electronic Certification Project, the first of its kind among chambers in the Kingdom.

Continuous development efforts at the Jeddah Chamber over the years have resulted in the establishment of several centers to meet the needs of the business sector and the labor market. These centers include the Business Development Center, the Small and Medium Enterprises Support Center, the Human Resources Development Center, Jeddah Marketing Center, the Social Responsibility Center, Jeddah Economic Center, and Khadija Bint Khuwaylid Center. In terms of events supporting the Kingdom's economic position, the Jeddah Chamber inaugurated the Jeddah Economic Forum in 2000, which was the sole competitor to the World Economic Forum in Davos at that time.

Sectoral councils at Jeddah Chamber

As part of structural reviews, the Jeddah Chamber addressed the proliferation of committees by focusing on activities and establishing sectoral councils. These councils have helped build sectoral clusters comprising both the public and private sectors. There are currently seven sectoral councils, each with competitive advantages for the economy of Jeddah City and aligned with Saudi Vision 2030. These sectors include the commerce and retail sector, industry sector, logistics sector, tourism and culture sector, education and training sector, healthcare sector, and urban development sector.

The responsibilities of the sectoral councils include studying the investment environment of the business sector they represent, identifying opportunities, challenges, and obstacles, and providing recommendations on them. They also review economic legislation (such as laws, regulations, decisions, standards, and official agreements) related to the business sector and provide recommendations on them, enhance integration within the business sector and with other sectors, identify opportunities, and provide recommendations on them to develop the circular economy.

Each sectoral council consists of a minimum of eleven members to a maximum of thirty-five members. Individuals can nominate themselves for membership in up to two councils representing different establishments. Jeddah Chamber has set seven criteria for sectoral council membership, including four basic and three preferential criteria.

The basic criteria include affiliation with a primary member establishment of the chamber operating in the relevant council's sector and work in the same sector with a minimum of seven years of experience in the relevant council's sector, holding a bachelor's degree from an accredited university, and being an owner, partner, board member, or senior executive of a member establishment in the chamber operating in the relevant sector.

The preferential controls include having additional experience in other business sectors not similar to the relevant councils' sector, membership in local or national committees, board memberships of companies, or working in regional or international organizations in the last five years, and proficiency in both Arabic and English.

Economic indicators of Jeddah Chamber

Through the administrative regulations, initiatives, and programs implemented by the Jeddah Chamber, the economic indicators for Jeddah City in 2021 showed a 9.7 percent increase in the number of chamber members compared to 2020. The number of members reached 154,153 in 2021, up from 140,407 in 2020.

With the Jeddah Chamber's efforts to diversify businesses and support male and female entrepreneurs in the governorate, the number of businesswomen reached approximately 46,965, accounting for 30 percent. Meanwhile, the number of businessmen reached 107,188, representing 70 percent. The membership was distributed across four main sectors: the commercial sector with 89,402 members, the service sector with about 59,461 members, the agricultural sector with about 355 members, and the industrial sector with about 4,782 members.