The total e-commerce market value in the MENA reaches US$ 37bn and is expected to surpass US$ 57bn by 2026
EZDubai, the fully dedicated e-commerce zone in Dubai South, recently launched the third edition of its ‘E-commerce Report in the MENA region’ in collaboration with Euromonitor International, the world’s leading provider for global business intelligence, market analysis and consumer insights.
The report revealed that the MENA region’s total e-commerce market size reached US$ 37 bn in 2022, with a double-digit growth rate from 2021 and a 32% CAGR over the 2018-2022 period.
The MENA’s double-digit growth is due to robust internet usage, a well-developed infrastructure, and supportive policies. Several trends also contributed, including the increasing popularity of digital payment platforms, the rise of online grocery shopping, and expanding tech initiatives.
Furthermore, economic stability, technology investment, and a young, tech-savvy population fueled the strong development of the digital landscape in the MENA region, as highlighted in the report.
The UAE, the Kingdom of Saudi Arabia (KSA), and Israel accounted for 72.1% of the total market size, with the growth in these countries attributed to factors including their technologically advanced populations, high-internet usage rates, and strong government finances. Specifically, Israel’s innovative economy and the rising demand for speedy delivery services propelled it to the forefront of the market.
The report also notes that companies in the UAE are making use of dark stores to streamline inventory management and provide delivery. Meanwhile, the KSA’s rapidly growing population, technological advancements, and development of secure payment systems contributed to its strong performance in the e-commerce sector.
The MENA e-commerce market size is expected to reach US$ 57bn in 2026, with a CAGR of 11% over the 2022-2026 period. Although countries like the UAE, KSA and Israel are expected to remain leaders in e-commerce market share, countries like Algeria are expected to see strong growth.
“At EZDubai, we recognise the strategic importance of e-commerce to the region’s economic development. We are committed to working closely with the government sector, and local and international businesses to further support the growth and success of this dynamic industry,” commented Mohsen Ahmad, CEO, Dubai South Logistics District.