The middle east eCommerce market is growing fast. It will reach 69 billion US dollars in 2020, which means it has doubled it size in just a few years. The Gulf Cooperation Council (GCC) region is the powerhouse driving this growth. With UAE being the trailblazer of eCommerce. It pulls the general growth of the region to a CAGR of 11 percent.
The Emirates achieve this mainly through a high digital penetration, their digital natives, and the Rising use of mobile wallets. 84 percent of surveyed consumers consider digital payments highly secure over cash and 73% of online shoppers prefer paying by credit card. The new mobile payment methods drive the growth rates of eCommerce in the Middle East.
In the Middle East and Africa (MEA) the mobile wallets outperform bank accounts. With more than 445 million mobile money wallets there are 1.5 times more mobile savvy customers that the 286 million bank account holders. This is further nurtured by government initiatives to make mobile payment more secure.
The fastest growing segment of eCommerce is E-groceries. People love their fresh food delivered directly to their doors. This segment is currently worth $200 million in the GCC and Egypt and shares less than 1 percent of the e-commerce market, but it shows a staggering growth-rate with reaching 30 percent of groceries shoppers today.