The young, tech-savvy population in the Middle East and North Africa (Mena) is expected to increase e-commerce spending by 15% in 2023 compared to the previous year.
Trading, the largest business-to-business (B2B) marketplace in the Middle East and North Africa (Mena), noted that the trend of digital adoption across multiple industries sparked by the pandemic will continue, with a relatively young and tech-inclined population driving the projection.
Out of necessity, the onset of the pandemic witnessed an increase in digital adoption across the globe. Despite the World Health Organization (WHO) declaring Covid-19 a global emergency, Mena expects to maintain its upward trend by adding around 100 million new digital service subscribers over the next five years.
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This development is expected to bring in as many as 125 million new digital users by 2030, while boosting the region’s digital economy from a value of $100 billion in 2022 to a staggering $500 billion by the end of the decade.
The high growth rate of the MENA digital economy is expected to continue in the foreseeable future, and the GCC is also expected to witness high growth. Furthermore, the UAE’s e-commerce industry is poised to contribute significantly through its high internet penetration rate of over 90%, growing smartphone user base, and rising demand for online shopping; consumers have increasingly favored this since the outbreak of Covid-19 Convenience instead of a traditional brick and mortar store.
Favorable government policies are also supporting the rise of e-commerce in the country.
The UAE government has implemented several initiatives to promote entrepreneurship and innovation in the country’s e-commerce sector, while developing a framework to protect consumers and businesses; this includes efforts to regulate the payment system and establish a dispute resolution mechanism.
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As a result, the digital economy in the Middle East and North Africa is rapidly taking over emerging markets such as Indonesia and India, which are worth around $70 billion and $135 billion, respectively.
Marius Ciavola, CEO of Tradeling, commented: “E-commerce in the Middle East and the digital economy in the region as a whole is poised to lead in the coming years, with the UAE leading the way. In recent years, with strategic location, a diversified economy and innovative infrastructure, e-commerce The surge in popularity in the country does not appear to be slowing down.With the active efforts of the UAE’s wise leadership and willingness to embrace new technologies and digital solutions to continue to cultivate a young, tech-savvy population, the future of the industry is full hope.”
As Mena’s dominant B2B marketplace, Tradeling is shaping the future of e-commerce in the UAE. Since its inception three years ago, the company has grown rapidly, with over 1.7 million unique products in 14 categories and over 200,000 registered buyers and sellers from 55 countries. — trade arab news agency