PUBLISHER: Orion Market Research | PRODUCT CODE: 1819666
PUBLISHER: Orion Market Research | PRODUCT CODE: 1819666
GCC E-Commerce Retail Market Size, Share & Trends Analysis Report by Model (Business to Consumer (B2B), Business to Business (B2B), Customer to Customer (C2C)), and by Product (Apparels and Accessories, Electronics Goods, Groceries, Furniture and Home Decor, Beauty and Personal Care, Others (Books and Magazines, Sports and Outdoors), Forecast Period (2025-2035)
Industry Overview
GCC e-commerce retail market was valued at $39.0 billion in 2024 and is projected to reach $123.2 billion in 2035, growing at a CAGR of 11.1% during the forecast period (2025-2035). GCC e-commerce retail market is gaining strong momentum owing to the logistics & last-mile delivery enhancements, cross-border commerce & platform proliferation, high internet & smartphone penetration, and an increase in payment methods and secure online transactions, which make e-commerce more accessible. Furthermore, initiatives like Saudi Vision 2030 and the UAE's Smart City projects enhance digital payments, fintech adoption, and logistics capabilities that underpin e-commerce.
Market Dynamics
Rising Digital Adoption with Investments in Automation and Artificial Intelligence (AI)
Growing digital adoption in GCC nations, including Saudi Arabia, the UAE, and Qatar, is opening an opportunity for the retail e-commerce sector. Cities like Dubai have some of the highest rates of internet and smartphone penetration globally, and their tech-savvy populace is driving demand for seamless digital experiences. According to the Telecommunications and Digital Government Regulatory Authority (TDRA), there were 3,742,119 broadband internet subscribers in the UAE with an average of 40 broadband internet subscriptions per 100 inhabitants as of September 2023.
Online shopping and cashless payments are becoming increasingly popular among consumers, and major companies are investing in automation and AI to boost productivity and customer interaction. For real-time inventory management, predictive analytics, and customized shopping experiences, major industry players like Noon made significant investments in AI. Its automated warehouses and logistical network help in smooth order fulfillment. Currently serving millions of users in the UAE, Saudi Arabia, and Egypt, the platform is a vital component of the digital economy in these countries.
Increasing Cross-Border Retail Opportunities in the GCC
In GCC countries, growing demand for streetwear, coupled with a rapidly evolving e-commerce landscape, is transforming the retail sector. New e-commerce players are entering the sector to cater to shifting consumer preferences, more prominently from the youth demographic. This influx is accelerating the growth of the region's online retail industry. For instance, in August 2025, Bonkers Corner announced its first international foray with its entry into the UAE market through its direct-to-consumer e-commerce platform via its website. The company, which already has 15 stores across India and an online presence, is strategically expanding into the UAE in response to the region's growing demand for streetwear and its quickly changing e-commerce landscape.
Market Segmentation
Apparel and Accessories Segment Shows Strong Growth Potential
Apparel and Accessories Segment growth is being led by rising disposable incomes & Fashion Consciousness, growth in mobile-based adoption of shopping, and expansion in omni-channel retailing. Retailers like Landmark Group have a strong retail and e-commerce presence across the GCC countries. Landmark Group is among the largest omnichannel retailers in the GCC. The company's online business has consistently grown by over 20% annually in the GCC. Furthermore, global e-commerce giants (SHEIN, H&M Online, Zara, Nike.com) and regional leaders (Namshi, Ounass, Noon) are expanding assortments, improving user experience, and offering localized fashion lines. In a nation like Saudi Arabia, the market is fragmented, with the top three sites capturing roughly 22% of traffic share: Shein.com (12%), Namshi.com (7%), and Centrepoint.com (3%). A noticeable trend is that most online players cater to non-luxury fashion, leaving opportunities for luxury brands to gain market share. Seven of the top 30 e-commerce sites focus on luxury clothes, including Level Shoes, Ounass, Farfetch, YNAP, and StockX.
B2C E-Commerce: Rapid Expansion across GCC Markets
The Business-to-Consumer (B2C) e-commerce segment in GCC countries has experienced rapid growth over the past decade, driven by increasing internet penetration, digital adoption, and evolving consumer preferences. Nations such as the UAE, Saudi Arabia, and Kuwait lead the chart, with consumers being highly inclined towards online shopping, particularly in the fashion, electronics, beauty, grocery, and luxury items segments. The growth of mobile commerce, digital wallets, and "buy now, pay later" services has made mobile shopping convenient and appealing to different income groups.
Regional and international players like Amazon.ae, Noon, Ounass, Carrefour, and Namshi are competing intensively, improving logistics and customer experience. Social media integration and influencer marketing have also given further strength to the B2C model. The B2C segment is expected to continue in its strong growth trajectory in the GCC region.
Saudi Arabia Maintains Strong Market Position
Saudi Arabia also possesses a strong GCC retail e-commerce market position with a youth technology-aware population, government support under Vision 2030, and technology-adoption by e-commerce companies through modern technology, effective logistics & delivery networks. According to Transport General Authority (TGA), more than 50 million parcels were successfully delivered across Saudi Arabia in the second quarter of 2025, demonstrating the country's growing digital economy. These are the biggest quarterly parcel volumes reported to date, indicating a rising dependency on e-commerce and door-to-door logistical services. Furthermore, many Saudi Arabian e-commerce companies are using modern technology to improve the online buying experience and give customers more convenience and customization. For instance, in November 2024, Zode.sa established strategic alliances with major international e-commerce companies like JD.com and tech behemoth Huawei, offering Saudi customers modern technology solutions and a better online shopping experience. Zode.sa is leading this change in line with Saudi Vision 2030, which aims for a 70% rise in online payments and an 80% growth in e-commerce retail by 2030.
The major companies operating in the GCC e-commerce retail market include Amazon.com, Inc., Noon.com, Namshi.com, and Carrefour, among others. Market players are leveraging partnerships, collaborations, mergers, and acquisition strategies for business expansion and innovative product development to maintain their market positioning.