Online shopping in the Middle East and North Africa is expected to grow more than three-fold by 2022, led by Saudi Arabia and the United Arab Emirates, according to a new study.
The e-commerce market in Mena is set to expand 28 per cent to $28.5 billion over five years, up from $8.3bn in 2017, according to the findings of a new study by Google and Bain & Co. released on Monday. Saudi Arabia is forecast to grow by 27 per cent a year to reach about $10bn by 2022, with e-commerce representing an 8 per cent share of total retail sales in the kingdom.
"The expansion of the middle class, the growing role of women in the workforce, improvements in logistics and access to online products in second tier and third tier cities represent key drivers for growth," the report said.
The UAE's e-commerce market is predicted to grow 31 per cent annually to $9bn by 2022 with a share of 13 per cent of the total retail sales.
"We expect broader product selection, the entry of new players and innovation in business models to play key roles in this growth," the report said.
More people are expected to buy their groceries online in the Arabian Gulf and Egypt over the next five years.
The market growth for online grocery shopping is set to jump 89 per cent, topping all other product categories, to $4.5bn.
"A more aggressive expansion strategy by hypermarkets, further transition from the region's drive-through and phone delivery culture to online marketplaces and broader geographic expansion to new cities would help facilitate growth," the report said.
Mena's e-commerce market still needs to make "quantum leaps" in challenging areas such as payment methods and logistics, according to the report findings.
Paying by cash on delivery is still one of the industry's biggest challenges in the region as it leads to higher return rates and failed deliveries.
About 62 per cent of regional online shoppers prefer to pay by cash on delivery compared to less than five per cent in the UK and France.
Tuesday's fixtures
Kyrgyzstan v Qatar, 5.45pm
The%20specs
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Kibsons%20Cares
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Killing of Qassem Suleimani
Ads on social media can 'normalise' drugs
A UK report on youth social media habits commissioned by advocacy group Volteface found a quarter of young people were exposed to illegal drug dealers on social media.
The poll of 2,006 people aged 16-24 assessed their exposure to drug dealers online in a nationally representative survey.
Of those admitting to seeing drugs for sale online, 56 per cent saw them advertised on Snapchat, 55 per cent on Instagram and 47 per cent on Facebook.
Cannabis was the drug most pushed by online dealers, with 63 per cent of survey respondents claiming to have seen adverts on social media for the drug, followed by cocaine (26 per cent) and MDMA/ecstasy, with 24 per cent of people.
Election pledges on migration
CDU: "Now is the time to control the German borders and enforce strict border rejections"
SPD: "Border closures and blanket rejections at internal borders contradict the spirit of a common area of freedom"
At a glance
Global events: Much of the UK’s economic woes were blamed on “increased global uncertainty”, which can be interpreted as the economic impact of the Ukraine war and the uncertainty over Donald Trump’s tariffs.
Growth forecasts: Cut for 2025 from 2 per cent to 1 per cent. The OBR watchdog also estimated inflation will average 3.2 per cent this year
Welfare: Universal credit health element cut by 50 per cent and frozen for new claimants, building on cuts to the disability and incapacity bill set out earlier this month
Spending cuts: Overall day-to day-spending across government cut by £6.1bn in 2029-30
Tax evasion: Steps to crack down on tax evasion to raise “£6.5bn per year” for the public purse
Defence: New high-tech weaponry, upgrading HM Naval Base in Portsmouth
Housing: Housebuilding to reach its highest in 40 years, with planning reforms helping generate an extra £3.4bn for public finances
A State of Passion
Directors: Carol Mansour and Muna Khalidi
Stars: Dr Ghassan Abu-Sittah
Rating: 4/5
Skewed figures
In the village of Mevagissey in southwest England the housing stock has doubled in the last century while the number of residents is half the historic high. The village's Neighbourhood Development Plan states that 26% of homes are holiday retreats. Prices are high, averaging around £300,000, £50,000 more than the Cornish average of £250,000. The local average wage is £15,458.
The specs: 2019 GMC Yukon Denali
Price, base: Dh306,500
Engine: 6.2-litre V8
Transmission: 10-speed automatic
Power: 420hp @ 5,600rpm
Torque: 621Nm @ 4,100rpm
Fuel economy, combined: 12.9L / 100km
Tips to keep your car cool
- Place a sun reflector in your windshield when not driving
- Park in shaded or covered areas
- Add tint to windows
- Wrap your car to change the exterior colour
- Pick light interiors - choose colours such as beige and cream for seats and dashboard furniture
- Avoid leather interiors as these absorb more heat
THE BIO
Bio Box
Role Model: Sheikh Zayed, God bless his soul
Favorite book: Zayed Biography of the leader
Favorite quote: To be or not to be, that is the question, from William Shakespeare's Hamlet
Favorite food: seafood
Favorite place to travel: Lebanon
Favorite movie: Braveheart
