According to a recent report, the United Arab Emirates, Saudi Arabia, and Israel are dominating the e-commerce market in the Middle East and North Africa (MENA) region. The report, which was released by iPrice Group, a meta-search website that allows users to compare prices and products from various online retailers, shows that these countries account for more than 70% of the region’s e-commerce activity.
The UAE leads the way in terms of e-commerce penetration, with 4.2% of the country’s retail sales made online, followed closely by Saudi Arabia at 3.8%. Israel, which has a smaller population than the other two countries, has a higher e-commerce penetration rate of 8.6%. The report also highlights the growing popularity of mobile e-commerce in the region, with more than 70% of online shoppers using their smartphones to make purchases.
One of the key factors driving the growth of e-commerce in the region is the increasing number of online shoppers. The report estimates that the number of online shoppers in the MENA region will reach 190 million by 2022, up from 80 million in 2017. This represents a huge opportunity for retailers, who are investing heavily in online platforms and digital marketing to capitalize on the growing demand.
The report also notes that the COVID-19 pandemic has had a significant impact on e-commerce in the region. With physical stores closed or operating at reduced capacity, consumers have turned to online shopping as a safer and more convenient option. This trend is likely to continue even after the pandemic has subsided, as consumers become more accustomed to the convenience of online shopping.
Despite the growth of e-commerce in the region, there are still a number of challenges that retailers need to overcome. These include logistical challenges such as the high cost of shipping and the lack of a reliable postal service, as well as regulatory hurdles such as customs procedures and taxes. However, with the increasing demand for online shopping and the growing investment in digital infrastructure, these challenges are likely to be overcome in the coming years.
Overall, the report paints a positive picture of the e-commerce market in the MENA region, with the UAE, Saudi Arabia, and Israel leading the way in terms of growth and innovation. As more consumers turn to online shopping, retailers will need to adapt their strategies to capitalize on this trend and stay ahead of the competition.
