The Middle East and North Africa's e-commerce market reached about $37 billion in 2022 as the use of digital channels expanded, a report from EZDubai has found.
The figure is 16 per cent higher than the $31.7 billion recorded in 2021, and is projected to reach around $57 billion by 2026 at a compound annual growth rate of 11 per cent, the study by the e-commerce zone, conducted in collaboration with Euromonitor International, said.
The growth in the sector comes on the back of the continued increase of internet usage, with trends such as the popularity of digital payment platforms and online grocery shopping, as well as expanding technology sector initiatives, the study said.
Government and economic factors have also contributed significantly: Mena countries' developed infrastructure, supportive policies and economic stability, as well as investments into technology to cater to a young and tech-savvy population, drove the region's strong digital landscape development, the study found.
Saudi Arabia and the UAE, the Arab world's two biggest economies, and Israel accounted for more than 72 per cent of the total e-commerce market. The growth in these countries was attributed to their technologically-advanced populations, high-internet usage rates and strong government finances, it said.
“The Mena region’s e-commerce industry has experienced rapid growth in recent years, driven by a combination of factors, such as increasing internet and mobile penetration, rising consumer demand for convenience and value, and the emergence of innovative business models,” said Mohsen Ahmad, chief executive of Dubai South Logistics District, where the EZDubai is based.
“It is worth noting that government initiatives have also played a vital role in supporting this growth, with several regional governments implementing policies to support digital transformation and encourage entrepreneurship and investing in the necessary infrastructure and technology to facilitate e-commerce operations.”
E-commerce portals are crucial for today's economies as they bring convenient and quick services to consumers. The rise of digital solutions on any platform and device is spurring the use of these channels.
In the Mena region, e-commerce is fast catching up with global powerhouses such as China, with many online retailers scaling up their services to avoid disruptions in supply chains caused by macroeconomic and geopolitical challenges, most notably those that were as a result of the Covid-19 pandemic, EZDubai previously said.
Monday's report showed that companies in the UAE are using dark stores — generally a physical location that is used as a warehouse for fulfilment operations — to streamline inventory management and provide delivery.
The UAE's e-commerce market is expected to be worth $9.2 billion by 2026, up nearly 92 per cent from 2021, as online sales continue to soar in the country, the Dubai Chamber of Commerce said in October.
The Emirates has also become a hub for global e-commerce. Market leader Amazon last week opened a new centre in Dubai South, increasing its total capacity in the UAE by 70 per cent. It is also building the Middle East's most technologically advanced warehouse in Abu Dhabi and opened another major warehouse in the UAE capital last June.
Saudi Arabia, meanwhile, has tapped into its growing population, technological advancements and the development of secure payment systems to strengthen its performance in the e-commerce sector.
Amazon had also launched a new academy in Saudi Arabia that seeks to support the kingdom's human capital programme for the digital economy.
Government initiatives have also played a vital role in supporting [e-commerce] growth, with several regional governments implementing policies to support digital transformation and encourage entrepreneurship and investing in the necessary infrastructure and technology to facilitate operations
Mohsen Ahmad,
chief executive of Dubai South Logistics District
The initiative, which was launched at the Leap technology exhibition in Riyadh in February, is the “largest talent development programme of its kind in the Middle East” and aims to empower small and medium enterprises.
Israel, meanwhile, has seen innovations in its economy and the rising demand for speedy delivery services driving its e-commerce space, the EZDubai study said.
E-commerce revenue in Saudi Arabia, the UAE and Israel are projected to reach $11.98 billion, $11.78 billion and $7.55 billion, respectively, in 2023, data from industry intelligence platform eCommerceDB shows.
“The demand for online shopping services in the Mena region is expected to continue growing,” Engy Naguib, senior engagement manager for Mena at Euromonitor International, wrote in the report.
“To sustain growth, e-commerce players should prioritise the personalisation of the online experience, adopt an omnichannel approach and improve last-mile delivery services.”
Sector-wise, the food and beverage industry in the UAE is projected to post strong growth, with an expected penetration rate of 13 per cent by 2026. The average order size in Saudi Arabia is projected to rise by 50 per cent by the same year, the report said.
Company Profile
Founders: Tamara Hachem and Yazid Erman
Based: Dubai
Launched: September 2019
Sector: health technology
Stage: seed
Investors: Oman Technology Fund, angel investor and grants from Sharjah's Sheraa and Ma'an Abu Dhabi
The biog
Favourite films: Casablanca and Lawrence of Arabia
Favourite books: Start with Why by Simon Sinek and Good to be Great by Jim Collins
Favourite dish: Grilled fish
Inspiration: Sheikh Zayed's visionary leadership taught me to embrace new challenges.
Qosty Byogaani
Starring: Hani Razmzi, Maya Nasir and Hassan Hosny
Four stars
Evacuations to France hit by controversy
- Over 500 Gazans have been evacuated to France since November 2023
- Evacuations were paused after a student already in France posted anti-Semitic content and was subsequently expelled to Qatar
- The Foreign Ministry launched a review to determine how authorities failed to detect the posts before her entry
- Artists and researchers fall under a programme called Pause that began in 2017
- It has benefited more than 700 people from 44 countries, including Syria, Turkey, Iran, and Sudan
- Since the start of the Gaza war, it has also included 45 Gazan beneficiaries
- Unlike students, they are allowed to bring their families to France
The candidates
Dr Ayham Ammora, scientist and business executive
Ali Azeem, business leader
Tony Booth, professor of education
Lord Browne, former BP chief executive
Dr Mohamed El-Erian, economist
Professor Wyn Evans, astrophysicist
Dr Mark Mann, scientist
Gina MIller, anti-Brexit campaigner
Lord Smith, former Cabinet minister
Sandi Toksvig, broadcaster
MATCH INFO
Who: UAE v USA
What: first T20 international
When: Friday, 2pm
Where: ICC Academy in Dubai
UAE currency: the story behind the money in your pockets
What sanctions would be reimposed?
Under ‘snapback’, measures imposed on Iran by the UN Security Council in six resolutions would be restored, including:
- An arms embargo
- A ban on uranium enrichment and reprocessing
- A ban on launches and other activities with ballistic missiles capable of delivering nuclear weapons, as well as ballistic missile technology transfer and technical assistance
- A targeted global asset freeze and travel ban on Iranian individuals and entities
- Authorisation for countries to inspect Iran Air Cargo and Islamic Republic of Iran Shipping Lines cargoes for banned goods
match info
Union Berlin 0
Bayern Munich 1 (Lewandowski 40' pen, Pavard 80')
Man of the Match: Benjamin Pavard (Bayern Munich)
The Voice of Hind Rajab
Starring: Saja Kilani, Clara Khoury, Motaz Malhees
Director: Kaouther Ben Hania
Rating: 4/5
BMW M5 specs
Engine: 4.4-litre twin-turbo V-8 petrol enging with additional electric motor
Power: 727hp
Torque: 1,000Nm
Transmission: 8-speed auto
Fuel consumption: 10.6L/100km
On sale: Now
Price: From Dh650,000
MATCH INFO
Uefa Champions League semi-finals, first leg
Liverpool v Roma
When: April 24, 10.45pm kick-off (UAE)
Where: Anfield, Liverpool
Live: BeIN Sports HD
Second leg: May 2, Stadio Olimpico, Rome
THE SPECS – Honda CR-V Touring AWD
Engine: 2.4-litre 4-cylinder
Power: 184hp at 6,400rpm
Torque: 244Nm at 3,900rpm
Transmission: Continuously Variable Transmission (CVT)
0-100kmh in 9.4 seconds
Top speed: 202kmh
Fuel consumption: 6.8L/100km
Price: From Dh122,900
Company%20profile
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UAE currency: the story behind the money in your pockets
PREMIER LEAGUE FIXTURES
Saturday (UAE kick-off times)
Watford v Leicester City (3.30pm)
Brighton v Arsenal (6pm)
West Ham v Wolves (8.30pm)
Bournemouth v Crystal Palace (10.45pm)
Sunday
Newcastle United v Sheffield United (5pm)
Aston Villa v Chelsea (7.15pm)
Everton v Liverpool (10pm)
Monday
Manchester City v Burnley (11pm)
Motori Profile
Date started: March 2020
Co-founder/CEO: Ahmed Eissa
Based: UAE, Abu Dhabi
Sector: Insurance Sector
Size: 50 full-time employees (Inside and Outside UAE)
Stage: Seed stage and seeking Series A round of financing
Investors: Safe City Group
UAE currency: the story behind the money in your pockets
The biog
Hometown: Birchgrove, Sydney Australia
Age: 59
Favourite TV series: Outlander Netflix series
Favourite place in the UAE: Sheikh Zayed Grand Mosque / desert / Louvre Abu Dhabi
Favourite book: Father of our Nation: Collected Quotes of Sheikh Zayed bin Sultan Al Nahyan
Thing you will miss most about the UAE: My friends and family, Formula 1, having Friday's off, desert adventures, and Arabic culture and people
RESULTS
Lightweight (female)
Sara El Bakkali bt Anisha Kadka
Bantamweight
Mohammed Adil Al Debi bt Moaz Abdelgawad
Welterweight
Amir Boureslan bt Mahmoud Zanouny
Featherweight
Mohammed Al Katheeri bt Abrorbek Madaminbekov
Super featherweight
Ibrahem Bilal bt Emad Arafa
Middleweight
Ahmed Abdolaziz bt Imad Essassi
Bantamweight (female)
Ilham Bourakkadi bt Milena Martinou
Welterweight
Mohamed Mardi bt Noureddine El Agouti
Middleweight
Nabil Ouach bt Ymad Atrous
Welterweight
Nouredine Samir bt Marlon Ribeiro
Super welterweight
Brad Stanton bt Mohamed El Boukhari
Company profile
Name: GiftBag.ae
Based: Dubai
Founded: 2011
Number of employees: 4
Sector: E-commerce
Funding: Self-funded to date
The%20specs
%3Cp%3E%3Cstrong%3EEngine%3A%3C%2Fstrong%3E%201.5-litre%204-cylinder%3Cbr%3E%3Cstrong%3ETransmission%3A%20%3C%2Fstrong%3ECVT%3Cbr%3E%3Cstrong%3EPower%3A%20%3C%2Fstrong%3E119bhp%3Cbr%3E%3Cstrong%3ETorque%3A%20%3C%2Fstrong%3E145Nm%3Cbr%3E%3Cstrong%3EPrice%3A%20%3C%2Fstrong%3EDh%2C89%2C900%20(%2424%2C230)%3Cbr%3E%3Cstrong%3EOn%20sale%3A%20%3C%2Fstrong%3Enow%3C%2Fp%3E%0A
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
The National's picks
4.35pm: Tilal Al Khalediah
5.10pm: Continous
5.45pm: Raging Torrent
6.20pm: West Acre
7pm: Flood Zone
7.40pm: Straight No Chaser
8.15pm: Romantic Warrior
8.50pm: Calandogan
9.30pm: Forever Young
Specs
Engine: Duel electric motors
Power: 659hp
Torque: 1075Nm
On sale: Available for pre-order now
Price: On request
The biog
Fatima Al Darmaki is an Emirati widow with three children
She has received 46 certificates of appreciation and excellence throughout her career
She won the 'ideal mother' category at the Minister of Interior Awards for Excellence
Her favourite food is Harees, a slow-cooked porridge-like dish made from boiled wheat berries mixed with chicken
