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Saturday, June 3, 2023

MENA e-commerce market to grow to $57 billion by 2026

The total e-commerce market size in the Middle East and North Africa (Mena) region is expected to reach USD 57 billion in 2026, growing at a CAGR of 11% during 2022-2026.

EZDubai, a fully dedicated e-commerce district in South Dubai, said the market will reach $37 billion in 2022, growing at a double-digit rate from 2021, with a compound annual growth rate of 32% between 2018 and 2022. The “Ecommerce in the Middle East and North Africa Report” has partnered with Euromonitor International, the world’s leading provider of global business intelligence, market analysis and consumer insights.

While countries such as the UAE, Saudi Arabia, and Israel are expected to maintain their leading positions in e-commerce market share, countries such as Algeria are expected to post strong growth.

double digit growth

Double-digit growth in the Middle East and North Africa was attributed to strong internet usage, well-developed infrastructure, and supportive policies.

Several trends also contributed, including the growing popularity of digital payment platforms, the rise of online grocery shopping, and expanding technology initiatives.

Furthermore, as highlighted in the report, economic stability, investment in technology, and a young, tech-savvy demographic drive a robust digital landscape in the MENA region.

The UAE, Saudi Arabia, and Israel account for 72.1% of the total market size, and the growth of these countries is attributed to factors such as technologically advanced population, high internet usage, and strong government finances.

innovation economy

Specifically, Israel’s innovation economy and growing demand for fast delivery services has pushed it to the forefront of the market. The report also noted that companies in the UAE are utilizing dark stores to simplify inventory management and offer delivery services. Meanwhile, Saudi Arabia’s fast-growing population, technological advancements, and development of secure payment systems have contributed to its strong performance in e-commerce.

Mohsen Ahmad, CEO, Dubai South Logistics Zone, said: “In recent years, the MENA region’s electronic The commerce industry has experienced rapid growth and the emergence of innovative business models. It is worth noting that government initiatives have also played an important role in supporting this growth, with some regional governments implementing policies to support digital transformation and encourage entrepreneurship, and investing in Necessary infrastructure and technology to facilitate e-commerce operations.

“At EZDubai, we recognize the strategic importance of e-commerce to the economic development of the region. We are committed to working closely with government departments, local and international businesses to further support the growth and success of this dynamic industry.”

Consumer electronics products

Engy Naguib, Senior Engagement Manager, Mena Region, Public Sector, Euromonitor International, said: “Demand for online shopping services is expected to continue to grow in the Mena region. In particular, the penetration of consumer electronics across e-commerce is expected to reach KSA’s by 2026. 29% and Egypt’s 50%.

“Meanwhile, the food and beverage industry in the UAE is expected to experience strong growth with a penetration rate of 13% by 2026. Furthermore, the average order size in KSA is expected to increase by 50% by 2026. To sustain growth, e-commerce participation Buyers should prioritize personalization of the online experience, adopt an omni-channel approach, and improve last-mile delivery services.” — trade arab news agency

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