Five Trends Reshape MENA E-commerce in 2025
MENA e-commerce reached US$34.5bn in 2024 and is projected to US$57.8bn by 2029. Unlike the early years of e-commerce in the Middle East and North Africa (MENA), when the focus was mainly on moving consumers from physical stores to online platforms, 2025 is about efficiency, monetisation, and reliability. The new drivers of growth are not […]
MENA e-commerce reached US$34.5bn in 2024 and is projected to US$57.8bn by 2029.
Unlike the early years of e-commerce in the Middle East and North Africa (MENA), when the focus was mainly on moving consumers from physical stores to online platforms, 2025 is about efficiency, monetisation, and reliability. The new drivers of growth are not simply about more people shopping online, but about checkout economics (faster, cheaper, and more secure payments), audience monetisation through retail media networks, and reliable cross-border delivery systems that connect the Gulf Cooperation Council (GCC) and wider MENA markets.
This evolution reflects a maturing digital economy where payment innovations, data-driven advertising, logistics optimisation, social commerce, and recommerce are redefining the competitive landscape. The Middle East’s e-commerce ecosystem is now among the fastest-growing globally, supported by tech adoption, high smartphone penetration, and government-led digital transformation strategies in countries such as the UAE and Saudi Arabia.
Below, we provide a newsroom-style brief that highlights the five biggest trends shaping MENA e-commerce in 2025, supported by verified statistics, official reports, and reliable industry sources.
MENA e-commerce reached US$34.5bn in 2024 (≈+13% YoY) and is projected to US$57.8bn by 2029. In the UAE specifically, online retail totaled AED 32.3bn (US$8.8bn) in 2024, with a forecast of AED 50.6bn (US$13.8bn) by 2029. Figures come from EZDubai’s fifth annual report with Euromonitor.
1) Real-time bank payments squeeze cards and COD in MENA e-commerce Ecosystem
The UAE’s instant payments platform Aani had ~1.5 million enrolled users by Feb 27, 2025; over the preceding year, transaction volumes grew ~27% month-on-month on average, per Al Etihad Payments and The National. India’s UPI–AANI linkage went live in July 2025, enabling real-time cross-border consumer payments. In Saudi Arabia, Mada e-commerce spend hit SAR 27.55bn (US$7.34bn) in March 2025, +73.4% YoY, underscoring rapid migration to cashless online checkout. (The Times of India)
Editorial read: Merchants should prioritise pay-by-bank alongside cards/BNPL to reduce fees and COD leakage, especially on mobile and subscriptions.
2) MENA e-commerce: Retail Media Networks become the performance engine
Majid Al Futtaim’s “Precision Media” rolled out AI-measured in-store inventory across Carrefour on May 13, 2025, building closed-loop retail media in the UAE. Noon began selling mobile DOOH ads on its last-mile fleet in June 2025, productising first-party surfaces. At a macro level, retail media ad investment is still rising globally (WARC forecasts double-digit growth into 2025), and UAE RMN revenues are estimated at US$951m (2024), projected to US$1.66bn by 2030 (Grand View Research)
Editorial read: Treat RMN ROAS cautiously; insist on incrementality (clean rooms/MMM) rather than dashboard claims.
3) Cross-border gets faster—and more reliable
Cainiao launched a GCC express network (June 23–24, 2025) promising delivery across all six GCC markets in as little as three days, targeting both cross-border and intra-GCC e-commerce. In parallel, Saudi Post (SPL) reports automation that cut domestic delivery times by 1–2 days (UPU)
Editorial read: The defensible promise is 48–72h with painless returns; “same-day everywhere” remains fragile and costly.
4) Social-led commerce accelerates—even without full in-app checkout
UAE usage remains near-universal: 11.3m social media user identities (~100% of population) in Jan 2025. In Saudi Arabia, the social-commerce market is expected to reach US$1.37bn in 2025 (+10% YoY), per Research & Markets’ 2025 country databook. (globenewswire.com)
Editorial read: Treat TikTok/Instagram as demand capture with shoppable video deep-linking to PDPs; run WhatsApp Business for service and COD-to-prepaid nudges.
5) Value & circularity go mainstream: recommerce as a P&L line
The Middle East recommerce market is projected at US$7.21bn in 2025 (~15.8% annual growth), with UAE recommerce ~US$2.01bn in 2025. Electronics and fashion lead the mix. (researchandmarkets.com)
Editorial read: Launch certified refurbished/trade-in with clear grading and 6–12-month warranties; use outlet SKUs to acquire value-seeking cohorts at lower CAC.
Why does this matter now?
- Margin: Account-to-account payments cut fees, while retail media adds revenue.
- Reliability: Three-day GCC lanes make regional delivery more dependable.
- Demand capture: Universal UAE social reach and Saudi social-commerce growth justify shoppable video and messaging pipelines.
Practical tips for MENA e-commerce sellers!
- Payments: Offer bank-to-bank checkout and reduce cash-on-delivery exposure by incentivising prepaid.
- Media: Shift at least 20% of digital ad spend into retail media networks—but demand independent measurement.
- Logistics: Promise 48–72-hour delivery across GCC markets and highlight return policies.
- Social: Use TikTok and Instagram for shoppable video linked directly to product pages; run WhatsApp Business for customer support.
- Recommerce: Launch certified refurbished/trade-in programmes with 6–12-month warranties to attract value-driven customers.