Saudi Arabia, the United Arab Emirates (UAE) and Israel account for 72.1 per cent of the total e-commerce market size in the region. The growth in the three countries was attributed to several factors, including tech-friendly people, high-internet usage rates and strong government finances.
The Middle East and North Africa (MENA) e-commerce market size is likely to reach $57 billion in 2026, with a CAGR of 11 per cent over the 2022-2026 period, says a new report by EZDubai, an e-commerce zone in Dubai South. Saudi Arabia, the United Arab Emirates and Israel account for 72.1 per cent of the total e-commerce market size in the region.
The MENA region’s double-digit e-commerce growth is due to robust internet usage, a well-developed infrastructure, supportive policies, the rising popularity of digital payment platforms, the rise of online grocery shopping and expanding technology initiatives, the third edition of ‘E-commerce Report in the MENA region’ noted.
Although countries like the UAE, Saudi Arabia and Israel are expected to remain leaders in e-commerce market share, countries like Algeria are expected to see strong growth.
Despite rising inflation remaining a concern globally, oil-rich countries within MENA have boosted the economic recovery thanks to elevated oil and gas prices. Government support to fight inflation and provide subsidies has also cushioned the blow of inflation on lower-income households, it said.
5G expansion across the region enhances the retail e-commerce experience, with pioneer countries such as Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates deploying some of the world’s first 5G networks. Morocco, Egypt, Algeria and Jordan are expected to further develop 5G during 2023, the report added.
Fibre2Fashion News Desk (DS)
