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Spanish E-Commerce Grows 18% Q1 2025

Spain’s e-commerce sector has experienced robust growth in the first quarter of 2025, reflecting the ongoing digital transformation of retail across the country. According to data from CNMCData, online sales in Spain reached over €25.7 billion in Q1 2025, representing an 18% increase compared to the same period in 2024. This surge highlights the accelerated adoption of online shopping by Spanish consumers and underscores the resilience of the e-commerce sector amid economic uncertainties. (ecommercenews.eu)

The growth in Spanish e-commerce is driven by multiple factors, including the increased use of mobile commerce, the expansion of online marketplaces, and enhanced logistics networks. Analysts suggest that consumer preferences have shifted significantly towards online shopping, with convenience, speed, and digital payment options playing critical roles. Additionally, the adoption of advanced technologies, such as AI-driven personalization and automated fulfillment systems, has further enhanced the online shopping experience.

Breakdown of E-Commerce Sales by Sector

The CNMCData report indicates that several sectors contributed to the growth. The travel and tourism sector, traditionally one of Spain’s largest e-commerce segments, showed continued recovery following pandemic-related declines. Electronics and media products accounted for a significant share, reflecting ongoing demand for smartphones, computers, and digital entertainment. Clothing and fashion sales also saw notable increases, particularly through online marketplaces offering same-day delivery and easy returns. (CNMCData)

Food and grocery e-commerce continues to expand, albeit at a slightly slower pace compared to other segments. Supermarkets and specialty food retailers are increasingly leveraging online platforms to reach urban consumers seeking convenience and home delivery options. Analysts note that the development of last-mile delivery networks and subscription-based services has been instrumental in supporting this growth.

Mobile Commerce and Digital Payment Adoption

One of the key drivers of Spain’s e-commerce growth is mobile commerce. A growing percentage of online transactions are now conducted via smartphones and tablets, making mobile-friendly websites and apps critical for retailers. Digital wallets, contactless payments, and integrated banking solutions have simplified the checkout process, reducing cart abandonment rates and boosting overall sales.

The role of fintech solutions in facilitating secure and convenient payments cannot be overstated. Retailers increasingly partner with digital payment providers to offer installment options, loyalty programs, and seamless checkout experiences, which have become essential in attracting and retaining customers.

Logistics and Fulfillment Enhancements

Efficient logistics and supply chain management remain a cornerstone of successful e-commerce operations. Spanish retailers have invested heavily in automated warehouses, AI-powered inventory management, and same-day or next-day delivery capabilities. These enhancements allow companies to meet rising consumer expectations while controlling operational costs.

Moreover, the development of regional fulfillment centers has helped reduce delivery times and shipping costs. Retailers are also leveraging predictive analytics to anticipate demand patterns and optimize stock allocation across distribution centers. These strategies ensure that products are available where and when customers need them, improving satisfaction and encouraging repeat purchases.

Impact on Traditional Retail

The growth of e-commerce has also influenced traditional retail in Spain. Many brick-and-mortar stores are adopting omnichannel strategies, integrating physical and digital shopping experiences. Click-and-collect services, virtual showrooms, and hybrid shopping models allow consumers to engage with brands both online and offline. Experts note that retailers who successfully combine digital and physical channels are better positioned to capture market share and drive long-term growth.

Challenges and Opportunities

Despite strong growth, Spanish e-commerce faces challenges, including increasing competition, cybersecurity risks, and the need for sustainable logistics practices. Retailers are under pressure to maintain high levels of service while addressing environmental concerns, such as packaging waste and carbon emissions from delivery fleets.

Nevertheless, these challenges present opportunities for innovation. Companies that implement green logistics, AI-driven customer insights, and personalized marketing strategies are likely to outperform competitors and build stronger customer loyalty.

Outlook for the Rest of 2025

Looking ahead, analysts predict continued growth for Spain’s e-commerce sector throughout 2025. The proliferation of smart devices, high-speed internet access, and digital literacy among consumers is expected to sustain demand. Retailers are also exploring emerging technologies such as augmented reality (AR) for virtual try-ons, AI-powered recommendations, and blockchain for supply chain transparency, further enhancing the online shopping experience.

Industry experts anticipate that e-commerce will increasingly represent a larger share of Spain’s overall retail sales, potentially exceeding 25% by the end of the year. The combination of technological innovation, consumer adoption, and logistical improvements positions Spain as one of Europe’s leading e-commerce markets.

In conclusion, the 18% growth in Spain’s e-commerce sector during the first quarter of 2025 underscores the resilience and dynamism of digital retail. With continued investment in technology, logistics, and customer experience, Spanish retailers are well-positioned to capitalize on the growing demand for online shopping, while simultaneously driving innovation and efficiency across the broader retail landscape.

Dubai Founders HQ to Empower Startups and SMEs in the Region

In a bid to strengthen Dubai’s position as a global center for innovation, His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai, has launched the Dubai Founders HQ. This groundbreaking initiative, developed by the Dubai Department of Economy and Tourism (DET) and the Dubai Chamber of Digital Economy, is designed to consolidate and amplify the startup and small and medium enterprise (SME) ecosystem in Dubai.

Dubai Founders HQ stands as the first-ever ‘phygital’ platform, blending a dynamic physical campus with an expansive digital ecosystem. This initiative brings together entrepreneurs, investors, corporations, and enablers, providing them with a collaborative environment that fosters creativity, business growth, and innovation. The platform already boasts over 25 leading public and private sector partners, spanning venture capital, telecommunications, financial services, government entities, and innovation hubs.

Dubai Founders HQ, The Heart Of Dubai’s Entrepreneurial Ecosystem

Located at the 25Hours Hotel in the One Central area of Dubai World Trade Centre, the Dubai Founders HQ campus serves as the heart of Dubai’s entrepreneurial ecosystem. His Highness Sheikh Hamdan emphasized the importance of cooperation between the public and private sectors in empowering entrepreneurs and innovators to succeed, highlighting Dubai’s commitment to fostering creativity and transforming new ideas into impactful success stories.

“We are committed to fostering an environment that embraces creativity, encourages new ideas, and transforms them into success stories that enhance Dubai’s position as a global center for innovation and creativity,” said Sheikh Hamdan. He also stressed that supporting entrepreneurs is not only an investment in human potential but also in the future prosperity of society.

A Game-Changer for Dubai’s Startups

The Dubai Founders HQ aligns with the goals of Dubai’s Economic Agenda D33, which seeks to scale 30 unicorns and support the growth of 400 SMEs by 2033. This visionary initiative empowers founders with unparalleled resources to launch, scale, and thrive. By bringing together leading local and global ecosystem players, Dubai Founders HQ aims to accelerate the development of Dubai’s entrepreneurial landscape across key strategic sectors.

With a hub-and-spoke model, the platform connects Dubai’s innovation ecosystem, including free zones, accelerators, and incubators, creating a seamless entry point for entrepreneurs at every stage of their growth. The comprehensive services provided include sector-specific acceleration programs, expert mentorship, investor access, and networking opportunities—all delivered through a vibrant community campus and a robust digital platform.

Key Features and Benefits

  • Collaborative Environment for Growth: The physical campus features state-of-the-art co-working spaces, meeting rooms, and event facilities that encourage collaboration and networking. It also celebrates local talent by showcasing homegrown artists, enhancing the creative atmosphere.
  • World-Class Mentorship and Acceleration Programs: Through strategic partnerships with renowned organizations such as Endeavor and Plug and Play, Dubai Founders HQ offers tailored programs for startups across various sectors. These programs provide access to corporate leaders, mentorship, and actionable insights to help entrepreneurs succeed.
  • Seamless Market Access: The platform provides a one-stop hub for business setup, growth resources, and licensing support. It also serves as a gateway for international startups, offering comprehensive guidance for entering the Dubai market.
  • Learning and Upskilling Opportunities: Dubai Founders HQ offers a comprehensive digital platform with a curated library of resources designed to help entrepreneurs acquire the knowledge and skills necessary to thrive in the competitive market.

Building a Collaborative Ecosystem

The launch of Dubai Founders HQ marks a significant milestone in the city’s journey to become a global hub for digital entrepreneurship. His Excellency Omar Sultan Al Olama, Minister of State for Artificial Intelligence, Digital Economy, and Remote Work Applications, emphasized the importance of Dubai Founders HQ in accelerating innovation and attracting international talent.

“The launch of Dubai Founders HQ reflects our commitment to creating an integrated, founder-focused ecosystem that empowers startups to scale beyond borders,” Al Olama said. “By uniting stakeholders across sectors, this initiative will serve as a vital engine for growth and innovation.”

As the platform continues to grow, Dubai Founders HQ will remain a key player in the city’s vision to become the ultimate destination for entrepreneurs, startups, and innovators worldwide.

Dark Stores Revolutionize e-Commerce Fulfillment in MENA Region

The Middle East and North Africa (MENA) region is experiencing a rapid transformation in its e-commerce sector, driven by rising consumer demand for speed, convenience, and reliability. The growth of digital retail is now being supported by an innovative solution: dark stores.

These fulfillment hubs, along with micro-fulfillment centers (MFCs), are emerging as crucial components in the next phase of e-commerce in the region, enabling businesses to meet the increasing expectations for ultra-fast delivery and operational efficiency.

Meeting the Demand for Ultra-Fast Delivery

In urban centers like Dubai, Riyadh, and Cairo, the need for near-instant delivery is growing rapidly. Consumers expect everything from groceries and personal care products to ready meals delivered to their doorsteps in under 30 minutes. However, fulfilling these demands from centralized warehouses is neither cost-effective nor feasible.

This is where dark stores come into play. Dark stores are small, fulfillment-only facilities located within or near residential areas, bridging the gap between consumers and retailers. These facilities are dedicated to fulfilling online orders, drastically reducing delivery times. Micro-fulfillment centers enhance this process by utilizing automation, robotics, and optimized inventory systems, making picking and packing more efficient.

UAE and Saudi Arabia Embrace the Dark Store Model

In the UAE, logistics company EMX has launched a new dark store network to support the region’s growing e-commerce industry. By utilizing these distribution centers, e-commerce businesses can enhance delivery speeds and offer additional services like “click-and-collect,” which allows customers to pick up their orders at designated locations.

In Saudi Arabia, SAL, a leading logistics provider, launched its Fulfillment Business Unit to further streamline operations in the Kingdom. By leveraging its expansive logistics network, SAL is able to offer integrated fulfillment services that cater to the growing demand for efficient e-commerce solutions in the region.

Boosting Cost Efficiency and Operational Scalability

Dark stores and MFCs are not only critical for speed but also play a vital role in improving the cost-effectiveness of last-mile delivery. By positioning fulfillment hubs in high-demand urban areas, retailers can reduce transportation distances, lowering fuel and labor costs. Automation technologies within these centers further enhance efficiency, reducing labor costs and minimizing error rates in the order fulfillment process.

As labor costs rise in the region, automation provides a stable foundation for scaling operations, ensuring that businesses can handle increased demand without significantly increasing operational expenses.

The Rapid Growth of MENA’s E-Commerce Market

The e-commerce sector in MENA is experiencing exponential growth, particularly in the quick commerce segment, which includes products like food, groceries, and ready meals. This segment is expected to expand at a compound annual growth rate (CAGR) of over 20% in the coming years. According to research by Grand View Research, the global dark store market is projected to grow at a CAGR of 36% to reach $129 billion by 2030. The MENA region is expected to see a similar growth trajectory, with the dark store market estimated to reach $12.1 billion by 2030.

Overcoming Operational Challenges

Despite their potential, dark stores and MFCs come with challenges. Real estate in urban centers is expensive, and setting up these facilities with the required technology and staffing involves significant upfront costs. Moreover, ensuring consistent demand density, managing fragmented inventory, and coordinating supply replenishment across multiple nodes adds complexity to operations.

Competition in the region is also fierce, with traditional supermarkets, e-commerce platforms, and quick commerce businesses all vying for a share of the market. Consumer expectations around free or low-cost delivery continue to put pressure on profit margins.

Strategic Imperatives for MENA Retailers

For e-commerce businesses in MENA to thrive, dark stores and MFCs are no longer optional; they are essential. Key strategies include:

  • Network Planning: Utilize data to strategically locate dark stores where demand is concentrated, ensuring high throughput per node.
  • Hybrid Models: Combine dark stores with regional hubs and mobile fleets to balance cost, coverage, and speed.
  • Technology Integration: Implement AI-driven solutions for inventory management, demand forecasting, and automation of sorting and picking processes.
  • Outsourcing: Smaller retailers can partner with third-party fulfillment providers to access dark store capabilities without large capital expenditures.

As the MENA region continues to urbanize and consumer expectations evolve, dark stores and micro-fulfillment centers are positioning themselves as foundational elements of the future e-commerce landscape. Businesses that fail to invest in this infrastructure risk falling behind in an increasingly competitive market.

 

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Germany’s E-Commerce Continues to Grow Powered by the Top 10 Retailers

Germany’s e-commerce sector is witnessing impressive growth, largely driven by the country’s leading online retailers. According to the latest rankings from EHI and ECDB, Amazon remains the largest online retailer in Germany, followed by local giants Otto and Zalando.

The total revenue of the top 1,000 online stores in Germany reached €80.4 billion in 2024, reflecting a 3.8% increase compared to the previous year. Growth is particularly concentrated among the top 10 retailers, which saw an 8% increase in their revenue, while the remaining 990 stores grew by only 1%. This trend demonstrates the strengthening market share of the major players, with Amazon maintaining a clear lead in the marketplace.

Market Share and Growth Expectations for Germany’s E-Commerce

The top 10 retailers now account for 38.8% of the total revenue generated by Germany’s top 1,000 online stores. This figure has increased compared to previous years. The growing dominance of large e-commerce platforms is highlighted by ECDB CEO Friedrich Schwandt, who stated: “Large providers are growing faster and capturing an ever-greater market share.” In total, the top 100 stores generate 70.7% of the sector’s total revenue.

For 2025, the e-commerce outlook in Germany remains optimistic. EHI predicts a 5.3% increase in the total revenue of the top 1,000 stores, while the German Retail Association (HDE) anticipates a 4% growth in overall e-commerce. After a period of contraction, the e-commerce market in Germany is now set for further expansion in the coming years.

The Rise of Marketplaces

In addition to first-party sales, the rankings also emphasize the performance of the largest online marketplaces in Germany. Amazon continues to lead in this space, followed by eBay, Otto, Zalando, and Temu. Amazon’s position is further strengthened by its significant advertising revenue in Germany.

On the other hand, the Chinese platform Temu saw an extraordinary rise, nearly quadrupling its transaction volume in Germany, reaching €3.4 billion in 2024. Temu’s rapid growth reflects the increasingly competitive landscape of the e-commerce sector in Germany, as international players continue to make significant strides.

Germany’s E-Commerce Sector Prepares for Another Strong Growth Year

The latest data confirms that Germany’s e-commerce sector is rapidly evolving, with major players consolidating their market share. As the top 10 retailers continue to grow, the overall market is expected to follow, albeit at a slower pace. The continued dominance of platforms like Amazon and the rise of new competitors like Temu indicate that Germany’s e-commerce market is dynamic and highly competitive. With positive revenue projections for 2025, the sector is set for another year of robust growth.

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Jeff Bezos Predicts Huge Societal Gains from AI Amid Growing Investment Bubble

Jeff Bezos, the Amazon founder, addressed the booming investment in artificial intelligence (AI) at the Italian Tech Week, calling it an “industrial bubble” but emphasizing that AI’s impact on society will be monumental in the long run.

Speaking with John Elkann, the billionaire chairman of Stellantis and Ferrari, Jeff Bezos drew a clear distinction between destructive financial bubbles and industrial bubbles, the latter of which result in enduring innovations and valuable infrastructure. According to Bezos, AI’s rise mirrors past industrial bubbles like the dotcom era, which, despite an eventual market crash, left behind vital developments such as fiber-optic networks and life-saving medicines born from the 1990s biotech crash.

Jeff Bezos: Artificial Intelligence Investments Are an Industrial Bubble

“This is an industrial bubble as opposed to financial bubbles,” Jeff Bezos explained, reassuring investors that despite current market excitement and inflated stock prices, AI technology is genuine and poised to reshape industries across the globe. He likened the current investment frenzy to the dotcom era, where every idea received funding, regardless of its viability.

Bezos, who now serves as Amazon’s executive chairman, shared a personal anecdote from the early 2000s when Amazon’s stock dropped dramatically. He recalled how the panic of the time was not reflected in the company’s solid operations, illustrating that even during periods of financial uncertainty, real value can emerge.

Despite concerns raised by other business leaders, such as Goldman Sachs CEO David Solomon, who warned of potential market drawdowns, Bezos remained confident about AI’s transformative power. “The benefits to society from AI are going to be gigantic,” he stated, noting that the full extent of AI’s impact is still unfolding.

As AI continues to capture global attention and investments flow into the sector, Bezos reaffirmed his optimism, comparing the potential societal benefits to previous industrial shifts. “This is real, and it’s going to change every industry,” he concluded, echoing his unwavering belief in AI’s future.

In contrast, Solomon echoed caution, suggesting that some of the capital currently invested in AI may not deliver returns, warning of a market correction within the next 12-24 months. Nonetheless, both Jeff Bezos and Solomon agree that AI’s influence will be profound, though the path forward remains uncertain.

 

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V Perfumes Named Top Online Perfume Retailer of the Year at Big Box Global Retail & E-Commerce Summit

V Perfumes, a leading name in the fragrance industry, has been honored with the Big Box Award for #1 Online Perfume Retailer of the Year at the prestigious Big Box Global Retail & E-Commerce Summit, held at the Millennium Plaza Downtown Hotel. This accolade marks a significant achievement in the company’s journey, which began in 2010 and has since grown to include over 50 stores across the GCC region.

The Big Box Awards, organized by Scribe Minds & Media under the leadership of founders Pradish Gireesan and Jordan Abraham, celebrated innovation and excellence in retail and e-commerce. The summit, renowned for its focus on both traditional and online commerce, provided a platform for global industry leaders to share insights, foster collaborations, and inspire the next wave of retail evolution. The event’s unique format honors businesses that excel in blending the best of both worlds—brick-and-mortar retail and e-commerce.

This year’s event attracted attention from leading retail professionals across the globe, with past awards spanning regions such as Australia, India, Indonesia, and Malaysia. After a successful UAE chapter, the Big Box Awards will extend to the Philippines, Saudi Arabia, and South Africa, continuing its mission to honor outstanding retail achievements.

V Perfumes’ E-Commerce Team Received The Award

At the ceremony, V Perfumes’ e-commerce team was presented with the coveted award by Navin Joshua, Co-Founder & Director of GreenHonchos, a leading D2C enabler. This win follows their 2024 SMB Award in the Retail category and marks a continued commitment to enhancing both in-store and online customer experiences.

“We are deeply honored to receive this recognition,” said Mr. Faizal CP, Co-Founder of V Perfumes. “This award is a testament to our team’s hard work and dedication to improving the e-commerce experience. We are inspired to continue innovating in the digital space, creating value for both our customers and the broader fragrance community.”

V Perfumes began its journey in 2010 and entered the online retail space in 2016. The brand has since grown rapidly, expanding to over 50 physical stores across the UAE, Qatar, Oman, and Saudi Arabia. Their seamless online shopping experience, complemented by diverse product offerings, seasonal promotions, and personalized customer engagement, has made them a leader in the GCC fragrance market.

In addition to their impressive retail footprint, V Perfumes continues to captivate customers through unique online offerings, such as their highly anticipated Autumn Sale, allowing customers to stay ahead of seasonal fragrance trends.

This award reflects V Perfumes’ ongoing success in combining innovation, consumer-centric strategies, and a passion for fragrances, securing its position as a dominant force in the region’s e-commerce landscape.

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Highsnobiety Ends E-Commerce Operations to Refocus on Culture and Publishing

Highsnobiety, owned by German fashion e-commerce giant Zalando, has announced that it will shut down its e-commerce division by the end of 2025, marking a strategic pivot back to its publishing and creative agency roots.

The decision is part of a company-wide restructuring plan, which will affect approximately 50 positions across retail and operations. According to a company spokesperson, Highsnobiety is working “closely with all impacted employees” to ensure a smooth transition and offer career support during the process.

Berlin Flagship Store to Become a Cultural Hub

The brand’s flagship store on Unter den Linden Boulevard in Berlin, which opened in 2023, will be transformed into a dynamic space for pop-ups, collaborations, and cultural activations. Instead of functioning as a retail location, the venue will serve as a creative platform for brands and communities to connect through limited events and experimental showcases.

This shift reflects a growing trend among lifestyle media brands—such as Hypebeast and Complex—to blur the lines between content, culture, and experience rather than maintaining traditional retail operations.

Highsnobiety Goes Back to Basics: Storytelling and Impact

Founded in 2005 by David Fischer as a digital magazine exploring streetwear, sneakers, and youth culture, Highsnobiety evolved into a multifaceted business combining editorial media, e-commerce, and a creative agency. Its online shop, launched in 2019, featured curated fashion and lifestyle products, including exclusive collaborations with major brands like Adidas, Stone Island, and Prada.

In a statement, Fischer emphasized that the company’s long-term strength lies in its cultural influence rather than retail execution.

“Highsnobiety has always been about helping our community understand what’s new and next, and helping brands earn credibility with the audiences that matter most,” he said.
“Over the past five years, we’ve proven our ability to create cultural moments that resonate far beyond traditional publishing. As we look ahead, our energy belongs squarely there.”

A Shift in Strategy for Zalando-Owned Media

Since Zalando acquired a majority stake in Highsnobiety in 2022, the publication has played a key role in connecting the e-commerce group with Gen Z and millennial audiences. However, with tightening retail margins and shifting consumer habits, Zalando has increasingly leaned on media-driven storytelling and brand partnerships as key growth areas.

Industry analysts note that Highsnobiety’s move could signal a larger shift in the fashion media landscape, where cultural capital and storytelling have become as valuable as direct retail sales.

With this transition, Highsnobiety is positioning itself as a creative powerhouse—one that shapes trends, drives conversations, and bridges the gap between brands and the culture that defines them.

Zalando Reports Strong Growth in 2024

TikTok Shop Classified as “High-Impact Platform” Under Thailand’s New E-Commerce Regulations

The Electronic Transactions Development Agency (ETDA) has officially designated TikTok Shop as a “high-impact” digital marketplace under Thailand’s Digital Platform Services Act, tightening regulatory oversight on one of the fastest-growing e-commerce players in the country.

The move places TikTok Shop among a group of major platforms — including Shopee, Lazada, Alibaba, Temu, and eBay — required to comply with Section 20 of the law, which mandates stricter business risk assessments, merchant verification, and consumer protection measures.

Expanding Thailand’s List Of Regulated Platforms

According to ETDA Executive Director Chaichana Mitrpant, the inclusion of TikTok Shop follows an earlier July 10 announcement naming 19 platforms subject to the same compliance requirements. Those listed include Shopee, Lazada, Grab, Kaidee.com, LINE Shopping, Taobao, and ONESIAM Application, among others.

“The ETDA ensures a transparent review process, providing each platform with sufficient time to submit data, raise objections, and complete verification,” Mitrpant said. He confirmed that TikTok Shop’s designation will take effect one day after its publication in the Royal Gazette, while LINE MAN Mart is also expected to be added soon.

Under Section 20, platforms identified as “high-impact” must conduct regular risk assessments and adopt robust risk-management frameworks to safeguard users and ensure fair business practices. They are also obliged to verify and register sellers, a measure aimed at tackling counterfeit products, scams, and financial fraud.

TikTok Shop Financial Performance And Market Impact

According to data from Creden.co, TikTok Shop (Thailand) recorded revenue of 12 billion baht (USD 330 million) in 2024, with a net loss of 3.6 billion baht. Despite the losses, analysts note that TikTok Shop’s aggressive pricing, short-video commerce model, and seamless integration with its social media platform have helped it capture a significant share of Thailand’s booming e-commerce market.

Industry experts say the new classification signals a broader regulatory tightening across Southeast Asia. Countries including Indonesia, Malaysia, and Vietnam have already introduced or strengthened laws to monitor cross-border e-commerce and digital marketplaces amid rising consumer protection concerns.

Thailand’s Digital Platform Services Act, which came into force in 2023, empowers the ETDA to categorize platforms based on their economic impact and systemic risk. Those deemed “high-impact” typically have a large user base, handle substantial transaction volumes, or serve as key intermediaries between consumers and sellers.

Balancing Innovation And Regulation

Analysts believe the inclusion of TikTok Shop reflects regulators’ growing awareness of social commerce’s influence on national economies. “TikTok’s dual identity as both a social media app and a marketplace makes it uniquely powerful — and complex to regulate,” said Dr. Siriwan Thammasat, a Bangkok-based digital policy expert. “The ETDA’s move signals Thailand’s intent to balance innovation with accountability.”

With Thailand’s e-commerce sector projected to surpass USD 35 billion by 2025, platforms like TikTok Shop will face greater scrutiny but also opportunities for sustainable growth under clearer regulatory frameworks.

Indonesia Becomes TikTok Shop’s 2nd Biggest Market

Trendyol Redefines E-Commerce in the Gulf with Localisation, AI, and SME Empowerment

Türkiye-based e-commerce powerhouse Trendyol is fast reshaping the online retail landscape across the Gulf through a strategy built on hyper-localisation, AI-driven innovation, and strong partnerships with local SMEs.

Founded in 2010, Trendyol has grown from a homegrown marketplace into a global decacorn valued at $16.5 billion in 2021. With more than 40 million customers worldwide, the company’s expansion into the GCC region underscores its ambition to become the leading digital commerce platform in the Middle East.

As a sponsor of GITEX Global 2025, Trendyol will showcase its latest AI-powered technologies and e-commerce solutions on October 15, signaling a new era of tech-led retail growth in the region.

Trendyol’s Strategy: Hyper-Localisation and Gulf Growth

President Çağlayan Çetin describes Trendyol’s success in the Gulf as the product of deep localisation and on-the-ground investment. The company has built dedicated offices, regional warehouses, and local teams to ensure faster deliveries and stronger seller support. Gulf Business

Today, Trend yol serves over 3.7 million customers in the Gulf, with Saudi Arabia emerging as its largest international market—accounting for 75% of regional orders. “You cannot operate from a distance,” says Çetin. “Local businesses are at the heart of our strategy.”

More than 5,000 Gulf-based sellers are now active on the platform, and 35% of all products sold in the region come from SMEs and local brands. Strategic collaborations with Zid and Monsha’at in Saudi Arabia are helping thousands of entrepreneurs—from female-led fashion startups to home décor artisans—scale their businesses through Trendyol.

AI and Infrastructure Powering Scale

Trendyol’s 2,000-strong tech team ensures that artificial intelligence drives every part of its ecosystem—from personalised product recommendations and Arabic-language search to real-time analytics for sellers. The Trendyol Assistant, a multilingual AI agent, enhances customer service and loyalty, while AI tools help merchants forecast demand and manage inventory efficiently.

The company’s infrastructure investments are equally ambitious. Trendyol is building a $500 million, 48MW data center in Ankara in partnership with Castle Investments to support its 40-million-plus users. It is also collaborating with ADQ, Ant International, and Baykar to launch a fintech platform offering digital payments and financial services. Further, plans are underway to develop a cloud computing business with support from Alibaba’s AliCloud.

Expanding the Digital Silk Road

Leveraging Türkiye’s strategic location, Trendyol aims to extend operations to Iraq and Syria, introducing a new transit trade route through Iraq to boost logistics efficiency across the GCC. Partnerships with last-mile providers such as Aramex, Starlink, and Saudi Post have already cut delivery times from nine to around four days.

Çetin believes the company’s long-term focus on localisation and technology will define the next phase of e-commerce in the region. “By focusing on customer satisfaction, technological advancement, and sustainable local investment, Trendyol is well positioned to lead the Gulf’s digital transformation,” he says.

Türkiye’s E-commerce Share Hits 20%

US Export Rule Hits AI Firms

The U.S. Commerce Department has introduced a new export control regulation, commonly referred to as the “50% rule,” which is expected to significantly affect AI and technology companies operating on a global scale. The rule, issued by the Bureau of Industry and Security (BIS), extends licensing requirements to subsidiaries that are more than 50% owned by entities listed on U.S. export control and sanctions lists. Officials say the move is designed to prevent sensitive technologies, particularly in artificial intelligence, from being indirectly transferred to countries deemed national security risks, with a particular focus on China (Axios).

Overview of the “50% Rule”

The “50% rule” changes the way U.S. export controls are applied to multinational companies. Previously, restrictions primarily targeted parent companies directly listed on control lists. Under the new rule, any subsidiary that is more than 50% owned by a listed entity now falls under the same licensing requirements. This means that even indirectly controlled subsidiaries are subject to U.S. export licensing and must obtain approval before transferring or sharing sensitive technology internationally.

Commerce Department officials argue that the rule closes a loophole in previous export controls that allowed sensitive technologies to be accessed indirectly through subsidiaries. According to a statement by BIS, “This adjustment ensures that U.S. controls reflect the realities of modern corporate ownership structures and the global reach of critical technology”.

Implications for AI Companies

The rule is likely to have widespread effects on AI firms with international operations. Companies may need to conduct thorough reviews of their ownership structures, partnerships, and supply chains to ensure compliance. Experts warn that this could result in increased administrative burdens, delays in licensing approvals, and potential disruptions to ongoing research and product development (Axios).

One example is Anthropic, a U.S.-based AI firm that has already implemented policies similar to the “50% rule.” The company reportedly severed partnerships with subsidiaries controlled by Chinese parent entities to ensure compliance. Analysts suggest that other AI companies could face similar strategic decisions as they navigate these regulations.

The rule also emphasizes the importance of legal and compliance departments within AI firms, as they must now closely monitor ownership changes, mergers, and acquisitions to avoid unintentional violations. Companies that fail to comply could face penalties, fines, or restrictions on exporting technology critical to AI development.

Industry Reactions

Industry responses to the new rule have been mixed. Some executives support the measure as a necessary step to protect national security, while others express concern that the regulation could stifle innovation.

Joseph Hoefer, principal and AI policy lead at Monument Advocacy, commented, “If American firms are tied up chasing ownership records and waiting for licenses to be approved, the U.S. risks slowing its own innovation while competitors in other regions advance unchecked.”

Conversely, advocates for the rule argue that controlling the flow of sensitive AI technology is essential to prevent strategic advantages from being transferred to adversarial nations. Kit Conklin, a former adviser to the House Select Committee on China, noted that the rule “addresses gaps in current export controls and ensures that subsidiaries cannot circumvent restrictions by operating under partial ownership structures.”

Balancing Security and Innovation

The introduction of the “50% rule” highlights the delicate balance between maintaining national security and promoting innovation. AI technology is increasingly critical for economic growth, defense applications, and commercial competitiveness. At the same time, sensitive AI capabilities, such as advanced machine learning models and large-scale data processing, could pose national security risks if transferred to foreign entities without proper oversight.

Some industry observers warn that while the rule strengthens national security, it may also discourage investment in AI startups and slow the deployment of cutting-edge technologies. Companies may hesitate to engage in international partnerships, fearing regulatory complexities and delays in approval.

Potential Global Effects

Because many AI firms operate in a multinational environment, the “50% rule” could have significant global repercussions. International subsidiaries of U.S. companies must now be evaluated under U.S. law, potentially impacting research collaborations, product development, and supply chain agreements abroad.

Experts suggest that AI companies may need to restructure ownership models or create separate legal entities to continue operations while complying with the new rule. Some smaller firms may find these adjustments particularly challenging due to limited legal and administrative resources.

The regulation may also encourage foreign AI companies to seek alternatives outside U.S. technology and expertise. By imposing stricter controls on U.S.-origin AI technology, competitors in Europe, Asia, or other regions might develop parallel systems, potentially reducing U.S. influence in the global AI ecosystem.

Policy Context

The “50% rule” is part of a broader effort by the U.S. government to control the international transfer of advanced technologies. It follows previous measures aimed at restricting semiconductor exports, surveillance tools, and other dual-use technologies. Policymakers argue that as AI becomes more pervasive and influential, controlling its distribution is vital to maintaining technological superiority in key sectors.

Commerce officials note that the rule applies specifically to technologies deemed sensitive, including AI tools that can be applied in defense, surveillance, or critical infrastructure. These measures are designed to prevent strategic technologies from benefiting nations with interests contrary to those of the United States.

Looking Forward

The AI industry now faces a period of adjustment. Companies must carefully evaluate ownership structures, partnerships, and licensing requirements to comply with the new regulation. At the same time, policymakers and industry leaders must consider ways to maintain the United States’ competitive edge in AI while ensuring security concerns are addressed.

Analysts expect that discussions between the U.S. government and industry stakeholders will continue in the coming months. Companies may seek clarifications, guidance, and potential exemptions for collaborative research projects. The final outcomes will likely shape how AI technologies are developed, shared, and deployed globally for years to come.