MENA E-Commerce Market: Current Analysis and Forecast (2023-2030)

Ecommerce, or electronic commerce, has revolutionized the way businesses operate and consumers shop. It refers to the buying and selling of goods and services through the internet. With the advent of ecommerce platforms, consumers can browse and purchase products from the comfort of their own homes, while businesses can reach a wider audience and expand their customer base globally. This innovative approach has significantly streamlined the shopping experience, making it more convenient and accessible. Ecommerce has also opened up opportunities for small and medium-sized enterprises to compete with larger companies by providing them with a cost-effective platform to showcase and sell their products. Overall, ecommerce has transformed the traditional retail landscape, offering a seamless and efficient way to engage in commercial transactions.

The MENA E-Commerce Market is expected to grow at a strong CAGR of 5.5% during the forecast period (2023-2030). The growing adoption of the MENA (Middle East and North Africa) ecommerce market has been a significant trend in recent years. With the increasing availability of internet access, digital payment solutions, and the proliferation of smartphones, consumers in the MENA region are embracing online shopping like never before. This shift is primarily driven by the convenience and wide variety of products and services offered by ecommerce platforms. Additionally, the COVID-19 pandemic has accelerated this adoption as it forced people to stay at home and rely more on online shopping for their needs. As a result, both local and international ecommerce players are actively tapping into the MENA market, providing a diverse range of products, attractive deals, and secure payment options to cater to the rapidly growing demand. This surge in ecommerce activity is not only benefiting consumers but also presenting immense opportunities for businesses to expand their reach and scale in the region. The UAE has the highest degree of digitalization, with 99% of the population having access to the internet. Saudi Arabia's digitalization is at 90%, while Egypt offers 71% of its population access to the internet.

Based on model type, the Market is segmented into business to consumer and business to business. With a population of over 400 million people and increasing internet penetration, MENA presents a vast and lucrative market for B2C businesses. The rise of technology and changing consumer behaviors have facilitated the growth of online shopping, with consumers increasingly opting for the convenience of purchasing products and services from the comfort of their homes. This shift has created ample opportunities for businesses to establish their online presence and tap into the MENA ecommerce market. As a result, the B2C segment in MENA is witnessing a surge in investments, innovation, and competition, offering exciting prospects for both local and international businesses.

Based on the Product Type, the market is bifurcated into consumer electronics, apparel and footwear, food and drinks, beauty and personal care, consumer appliances others. Others (Media Products, Homeware and furnishings, consumer health, etc) segment will grow with the significant CAGR during forecast period. This segment encompasses a wide range of products, such as media products, homeware and furnishings, consumer health, and more. With the advancement of technology and changing consumer behaviors, online shopping has become increasingly popular in the region. Consumers are now embracing the convenience, variety, and competitive pricing offered by ecommerce platforms.

For a better understanding of the market adoption of the e-commerce, the Middle East market is analyzed based on its worldwide presence in countries such as Saudi Arabia, UAE, Iran, Egypt, and the Rest of MENA. Saudi Arabia, the largest economy in the Gulf Cooperation Council (GCC), has also witnessed a remarkable growth in the e-commerce market. The government's Vision 2030 program, which aims to diversify Saudi Arabia's economy, has placed a strong emphasis on advancing the digital sector, including e-commerce. For instance, The country's e-commerce market was supported by the establishment of an e-commerce law in 2020 to achieve the strategic objectives of the country's Vision 2030 plan. The country has seen a surge in the number of online shoppers, with consumers increasingly attracted to the ease of online shopping, broader product selections, and competitive pricing. E-commerce giants and several start-ups have capitalised on this growing trend, fueling the expansion of the e-commerce market in Saudi Arabia.

Some of the major players operating in the market include ebay Inc., Noon., SHARAF DG LLC, LETSTANGO, Namshi., Amazon.com, Inc, Mumzworld, microless.com., EasyShopping.ae & Danube homes.