UAE-based digital agency Medialinks released a report titled, ‘The future of e-commerce in the Middle East and North Africa: examining the key drivers of growth.’ It explores trends that are likely to influence e-commerce in the Middle East and North Africa region in 2023.
The report provides an analysis of the current state of the e-commerce market in MENA and identifies trends that shape its growth this year. According to it, the e-commerce market in MENA is expected to see significant growth over the next few years with an estimated compound annual growth rate of 15 per cent between 2021 and 2023. This growth is being driven by a number of key factors listed below:
Increasing internet penetration and mobile phone adoption
The number of internet users in MENA is expected to reach over 200 million by 2023, with a majority of these users accessing the internet via their mobile phones. This increase in internet and mobile phone adoption makes it easier for consumers in the region to shop online.
Growing use of digital payment methods
The use of digital payment methods such as mobile wallets and online banking is also on the rise in MENA. This trend is making it easier for consumers to make online purchases and is driving the growth of e-commerce in the region.
Increasing demand for online shopping
Consumers in MENA are increasingly turning to online shopping as a convenient and safe way to purchase goods and services. This trend is being fueled by the COVID-19 pandemic, which has led to a shift towards online shopping as a way to avoid crowded physical retail spaces.
With busy work schedules and hectic lifestyles, consumers in the region are looking for ways to save time and effort when shopping. E-commerce provides an easy and convenient way for consumers to shop from the comfort of their own homes, which has contributed to its growing popularity in the region. One of the trends expected to dominate the e-commerce industry in the MENA region in 2023 is the rise of cross-border e-commerce. Cross-border e-commerce refers to the sale of goods and services from one country to another, either through online platforms or through physical stores.
Additionally, mobile commerce or m-commerce is set to play a significant role in the e-commerce and digital marketing space in 2023. According to a report by the Arab News, mobile penetration in the region is expected to reach 89 per cent by 2023 with more and more consumers turning to their smartphones for shopping and purchasing products and services. This shift is driving e-commerce companies to focus on optimising their mobile websites and app experiences to provide seamless and convenient shopping options for their customers.
Download the entire report here.
