Key facts and figures about the Middle East e-commerce market

The MENA (Middle East and North Africa) region is set to be the next big growth market for e-commerce, with many retailers turning their attention to countries such as Saudi Arabia, the UAE and Egypt.

The Middle East at a glance...

• 22.6m people across the Middle East, with 74% able to access the internet
• Saudi Arabia: 15.6 million internet users, 3.9 million online shoppers
• UAE e-commerce revenues expected to reach $4.4billion by 2020, with 60% of shoppers based in Dubai

With overall e-commerce growth across the Middle East and Africa expected to reach 11% by 2020, and the ME market soon to be valued at around $69 billion USD, there’s no better time to consider expanding your business into the Gulf region and beyond..

So why start selling to shoppers in the Middle East?

Competition

• There are very few prominent e-commerce marketplaces currently in the Middle East, so while internet penetration in the region is high, many local retailers aren’t fulfilling demand thus driving online shoppers to buy cross-border. Major marketplace Souq.com was acquired by Amazon in 2017, the same year in which Noon.com launched promising to be a “game-changer”. Both sites are large online marketplaces selling vast ranges of products, offering competitive prices and fast delivery; their success in the region shows demand for quality e-commerce sites is high.

Growth

• Many Middle Eastern governments are investing heavily in infrastructure and digital services to encourage international e-commerce growth in their countries. For example, by promoting a “digital society” the Omani government successfully doubled the number of yearly electronic transactions in 2017, while Bahrain’s Electronic Transactions law protects payments and gives shoppers greater confidence buying online.

Delivery

• The key to successfully selling to the Middle East is fast and reliable delivery. Many cross-border shoppers in the region want a delivery service they can trust; 21% of Middle Eastern shoppers described delivery issues as a barrier to buying online. Working with trusted local partners is key to countering this.