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eCommerce in the Middle East – Statistics and Trends

Created: Apr 26, 2021

Updated: Nov 08, 2024

The market of eCommerce in the Middle East is projected to reach $50 billion by 2024, reflecting a substantial increase from $20 billion in 2020. This growth is a testament to the region's robust adoption of digital technologies and the increasing comfort of consumers with online shopping. Even with almost 90% of their online goods being imported from other countries, there is still a report of increasing profits in the sector of eCommerce in the Middle East.

eCommerce in the Middle East Statistics:

  • eCommerce in the Middle East is expected to grow by 12.77% on an annual basis to reach almost $50 billion in 2024.
  • The eCommerce in the Middle East is expected to grow steadily over the forecast period, recording a CAGR of 10.24% during 2024-2028.
  • The E-commerce Gross Merchandise Value in the country will increase from US$30.7 billion in 2023 to US$51.2 billion by 2028. eCommerce in Dubai has taken a turn for an increase as several e-commerce sites provide these services.
  • There are several eCommerce companies in Dubai and various e-commerce websites in the UAE and other Middle Eastern countries.
  • The growth of e-commerce in the Middle East is highly significant, with an estimated 25% increase in e-commerce companies causing a higher global penetration.
  • Around two million, or 20% of the UAE population have shifted to online shopping during the last few years – raising the online shopping population from 4.5 million in 2019 to 6.5 million in recent years.
  • This is accelerating the growth of the UAE's $83.5 billion Global e-commerce to expand by $1.4tn by 2025
  • Revenue in the eCommerce Market is projected to reach US$4,117.00bn in 2024. Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 9.49%, resulting in a projected market volume of US$6,478.00bn by 2029.

Estimated Retail E-commerce Sales in MENA

Year Retail E-commerce Sales (in Billions)
2019 $48.66
2020 $55.40 (F)
 2021 $49.76
2022 $57.46
2023 $69.5
2024 $72.65 (F)

Online sales in the Middle East currently equal only a meager 4% of total retail revenue

eCommerce penetration as %age of total retail sales

Region E-commerce penetration as %age of Total Retail sales
MENA region 1.9%
GCC countries 3%
UAE 4.2%
Saudi Arabia 3.8%
Egypt 2.5%

Estimated eCommerce User Penetration in 2024

Country %age
Saudi Arabia 80.20%
UAE 69.40%
Cyprus 61.30%
Qatar 62.10%
Kuwait 58.30%
Bahrain 56.40%
Iran 52.40%
Turkey 48.00%
Oman 48.00%
Israel 47.40%
Egypt 46.50%
Jordan 34.90%

85% of consumers in the UAE and 80% in KSA use mobile devices to get information about the products they intend to buy.

61% of shoppers in GCC use cards for online transactions.

Retail penetration in the region is now around 11–12% and keeps growing. Over 80% of buyers use mobile devices, and 70% of them use social media to reach the seller. eCommerce in the Middle East statistics and trends show that the Internet penetration is close to 100%, and 80% of users already buy through the internet.

In 2023, 91% of online purchases in MENA were made using the card, compared to 9% cash purchases. Almost 56% of consumers in the UAE, KSA, and Egypt start their online shopping journeys using search engines as opposed to retailers’ websites. More than 60% of shoppers in the UAE and KSA and 43% in Egypt have completed an online transaction at least once. 62% of MENA online shoppers prefer COD as a payment method when buying online.

Read more: Latest Trends In Social Media Across The Middle East Highlighted In the New White Paper

Top reasons why Middle East consumers will prefer to shop online Post-COVID

Reason %age
Quality 51%
Health 44%
Affordability 39%

Almost 90% of online purchases are shipped from abroad

Electronics, Fashion & Beauty, Grocery, and Home products make up 98% of the e-commerce market in UAE and Saudi Arabia.

On average, UAE shoppers spend $1648 per e-commerce transaction. GCC shoppers spend USD$150 on average per shopping cart.

In 2024, the average consumer in the Middle East spent an estimated $817.11 shopping online.

Country E-commerce Spending per Shopper
UAE  $ 3,104.00
Qatar  $ 1,488.00
Israel  $ 1,181.00
Saudi Arabia  $     527.00
Turkey  $     475.00

E-commerce growth occurred as a result of the high internet usage by the Middle East populace. Middle East countries like Iran and Egypt have high internet users with 56,700,000 and 48,211,493 users, respectively. There is also a mouth-gaping record with Bahrain in 2017, where 98% of their population used the internet, sweeping past France and the USA. Middle East countries experience an annual e-commerce growth of 32% from 2022 to 2024.

The coronavirus outbreak contributed to the growth of eCommerce in the Middle East, as over 40% of respondents started shopping online more than they did before the outbreak. Middle East e-commerce market size is projected to exhibit a growth rate (CAGR) of 22.48% during 2024-2032. The shifting consumer preferences towards the convenience and efficiency offered by digital transactions, along with the growing number of tech-savvy individuals, are primarily driving the regional market.

eCommerce in the Middle East | Go-Globe

Future Trends

  1. Digital Transformation: Continued digital transformation, including the adoption of AI and machine learning, will enhance the e-commerce experience through personalized shopping and efficient supply chain management.
  2. Expansion of Product Categories: As the market matures, there will be an expansion of product categories offered online, including groceries, pharmaceuticals, and luxury goods.
  3. Cross-border E-commerce: There is increasing interest in cross-border e-commerce, allowing consumers to shop from international websites and boosting the market's growth potential.

How GO-Globe Can Help Middle Eastern Businesses Thrive in the eCommerce Market

The rapid growth of e-commerce in the Middle East presents a world of opportunities for businesses looking to expand their digital presence. As consumers shift to online shopping for convenience and variety, companies in the Middle East are racing to capture this burgeoning market. However, succeeding in this competitive landscape requires more than just setting up an online store. GO-Globe, an experienced eCommerce website development company in Dubai, specializes in helping businesses navigate the challenges and opportunities in the Middle Eastern e-commerce sector with expert web development, digital marketing, and strategy.

Understanding the Middle Eastern Market

To thrive in the e-commerce landscape of the Middle East, businesses must understand the unique factors that drive consumer behavior in the region. Cultural values, purchasing habits, and local regulations all play crucial roles. GO-Globe’s team brings years of experience working with Middle Eastern businesses, allowing them to develop solutions that align with these specific market needs. This insight into the regional market is instrumental in crafting e-commerce websites that resonate with local audiences and build trust.

For example, payment methods can vary significantly, with cash-on-delivery still popular in many parts of the region. GO-Globe integrates multiple payment gateways to cater to diverse consumer preferences, making purchases easier and more accessible for users across various demographics. The company’s experience with both global and regional payment systems helps ensure smooth transactions, which is a vital aspect of reducing cart abandonment rates and enhancing user experience.

Mobile-First, Culturally Relevant Designs

One of the key trends in Middle Eastern e-commerce is the dominance of mobile shopping. Consumers increasingly rely on mobile devices for online shopping, making it crucial for businesses to adopt a mobile-first approach. GO-Globe specializes in mobile-optimized design that adapts seamlessly to any device, creating smooth, visually appealing, and intuitive experiences for mobile users. Their web designs are crafted with the user in mind, focusing on high performance, fast loading times, and clear navigation to enhance engagement and conversion.

GO-Globe also ensures that each website design is culturally relevant, reflecting regional values and preferences. This cultural sensitivity not only helps build brand loyalty but also makes consumers feel understood and respected, which is particularly important in a market with deep-rooted cultural traditions. By incorporating localized content, language options, and culturally aligned imagery, GO-Globe’s designs effectively bridge the gap between businesses and their Middle Eastern audience.

Optimizing for Search and Digital Marketing Success

Visibility is key to driving traffic and sales in the competitive e-commerce market. GO-Globe offers comprehensive SEO services to ensure that their client’s e-commerce websites rank high in search engine results. With a focus on optimizing keywords, meta tags, product descriptions, and technical SEO elements, GO-Globe positions businesses to reach their target audience effectively. The company’s SEO strategy is tailored to the Middle Eastern market, considering popular local search terms and trends to enhance relevance and visibility.

Digital marketing also plays a vital role in attracting and retaining customers. GO-Globe provides digital marketing solutions that include social media management, email marketing, and pay-per-click advertising, all aimed at driving targeted traffic to e-commerce websites. Social media platforms like Instagram, Snapchat, and Facebook are incredibly popular in the Middle East, and GO-Globe helps businesses leverage these platforms to boost brand awareness and engagement.

Robust Security and Reliability

In the Middle East, as in other regions, customers need to feel that their data is secure. GO-Globe prioritizes robust security features, including SSL certificates, secure payment gateways, and data encryption, ensuring customers can shop with peace of mind. The company also offers regular maintenance and updates to keep the websites running smoothly, providing a seamless experience for users while safeguarding sensitive data from potential cyber threats.

Building Long-Term Partnerships for Sustainable Growth

GO-Globe’s approach is not only about launching e-commerce websites but also about fostering long-term partnerships for sustainable growth. Their team offers ongoing support and consultation, adapting strategies as the market evolves. With continuous monitoring, analysis, and adjustments, GO-Globe ensures that businesses can remain competitive and agile in a fast-changing digital environment.

For businesses looking to succeed in the Middle Eastern e-commerce landscape, GO-Globe’s expertise in localized website development, digital marketing, and market insights makes them an ideal partner. By prioritizing cultural relevance, mobile optimization, security, and visibility, GO-Globe helps businesses build a robust digital presence that appeals to Middle Eastern consumers and fosters lasting customer loyalty.

Conclusion

eCommerce in the Middle East is on a robust growth trajectory, supported by favorable demographics, increasing internet and mobile penetration, and proactive government policies. While challenges remain, the opportunities for e-commerce businesses in the region are immense, making it an attractive market for both local and international players.

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