E-commerce market in MENA grows by 30%

The e-commerce sector in the MENA region experienced a significant 30% growth in 2024, increasing its market value considerably. In the $50 billion ecosystem, the United Arab Emirates (UAE) and Saudi Arabia led the way in this growth.

According to a joint report by Flowwow and Admitad, e-commerce in the UAE grew by 7%, while in Saudi Arabia, the sector saw a 9% increase. A marked rise in online orders was observed in these countries, further solidifying their leading position in the sector.

Saudi Arabia, the UAE, and Kuwait made the largest contributions to the gross merchandise volume (GMV) from online sales. Due to population density and digital transformation, Turkey and Egypt also followed this ranking. Countries such as Morocco, Pakistan, Qatar, Algeria, and Bahrain benefited from the increase in mobile e-commerce.

Online gaming sector leads growth in MENA

Additional findings from the report include:

• The volume of online orders in the UAE and Saudi Arabia exceeded the MENA average of 5%, achieving 7% and 9% growth, respectively.
• An increase was also noted in the average order value (AOV) in MENA. AOV rose from $30 in 2023 to $35.60 in 2024.
• In the UAE, AOV increased from $89 to $102, while in Saudi Arabia, it grew from $49.60 to $52.50.
• The online gaming sector saw the fastest growth in the MENA region, with order volume increasing by 32%.
• B2B e-commerce services and the online fashion industry experienced notable growth of 25% and 23%, respectively.

“E-commerce sector in MENA evolving toward new trends”

Anna Gidirim, CEO of Admitad, stated, “The MENA e-commerce sector is evolving toward trends such as AI-powered personalization, community-focused strategies, personalized marketing approaches, and platforms like TikTok and Pinterest becoming shopping hubs for Gen Z.”

Slava Bogdan, CEO of Flowwow, emphasized, “The development of e-commerce and the gift market, combined with support for local entrepreneurship, is driving economic growth and creating new opportunities for individuals and local businesses in the region.” He added, “The record results achieved in 2024 lay the foundation for even greater growth. We expect a fourfold increase in the region and a 300% annual revenue growth by 2025-2026.”

UAE gift market reaches over 200 active sellers

On the other hand, the UAE gift market is projected to grow by 14.7% between 2024 and 2030. Flowers accounted for 43.5% of purchases, sweets and baked goods made up 3.7%, and balloons contributed 1.7%. The country’s gift market now includes over 200 active sellers, 150 of which are based in Dubai. These local sellers have contributed to the region’s e-commerce revenue growth by offering a wide range of over 24,000 products, from flowers to jewelry.

The MENA e-commerce sector is valued at $50 billion. The ecosystem is expected to continue evolving in 2025 with the development of user-friendly technologies, community-driven mechanics, and personalized mobile shopping experiences.