South Korean e-commerce giant Coupang reported record annual revenue for 2025, though its fourth-quarter profitability declined sharply following a personal data breach disclosed in December.

According to a filing submitted to the U.S. Securities and Exchange Commission, Coupang generated 49.1 trillion won ($36.8 billion) in revenue in 2025, marking a 14% increase from 41.3 trillion won ($30.9 billion) a year earlier. On a constant-currency basis, revenue rose 18% year-on-year.

The company also extended its profitability streak, reporting 679 billion won ($509 million) in annual operating profit, up 8% from 602.3 billion won ($451 million) in 2024. Net income for the year reached 303 billion won ($227 million) , more than triple the previous year, while earnings per share stood at $0.11.

The results mark Coupang’s third consecutive year of operating profitability, reflecting continued growth in its core e-commerce operations and expanding digital services.

Fourth-Quarter Profit Plunges After Data Breach

Despite the strong annual performance, Coupang’s profitability weakened significantly in the final quarter of the year.

Revenue for the October–December period reached 12.81 trillion won ($9.61 billion), up 11% compared with the same period in 2024, though down 5% sequentially from the previous quarter.

Operating profit fell sharply to 11.5 billion won ($8.6 million) from 435.3 billion won ($326 million) a year earlier, while the operating margin narrowed to just 0.09%.

The company also recorded a quarterly net loss of 37.7 billion won ($28.3 million).

Coupang said the December data breach involving customer information had a direct impact on revenue growth, active customer numbers, membership activity in its Wow loyalty program, and overall profitability.

However, the company noted that the situation has since stabilized and that recovery began in the first quarter of 2026.

Chairman Apologizes to Customers

During the company’s earnings call, Chairman Kim Beom-seok issued an apology to customers affected by the incident.

“I once again apologize for the concern and inconvenience caused to our customers due to the personal information incident,” he said.

“Our customers are the sole reason for our existence. There is nothing more serious than failing to meet customer expectations at Coupang.”

Core Commerce Continues to Drive Growth

Coupang’s product commerce segment – which includes services such as Rocket Delivery, Rocket Fresh, and the company’s online marketplace , generated 10.74 trillion won ($8.06 billion) in fourth-quarter revenue, representing 8% year-on-year growth.

Meanwhile, the company’s growth initiatives, including the luxury fashion platform Farfetch, its Taiwan operations, Coupang Eats, and Coupang Play, posted revenue of 2.07 trillion won ($1.55 billion) – a 32% increase from the previous year.

However, these newer businesses also recorded an adjusted EBITDA loss of 434.9 billion won ($326 million), more than double the loss reported a year earlier.

Customer Metrics and Cash Flow

Active customers in Coupang’s product commerce segment totaled 24.6 million in the fourth quarter, representing an 8% increase year-on-year, though slightly down by 100,000 customers compared with the previous quarter.

Revenue per active customer increased 3% on a constant-currency basis, reaching $301 (436,400 won).

Cash flow performance, however, softened during the year.

Operating cash flow declined to $1.8 billion, compared with $1.91 billion the previous year. Free cash flow dropped more sharply to $527 million, down from $1.02 billion, reflecting working-capital effects related to the data breach as well as increased capital expenditures.

The company also repurchased 5.9 million shares of Class A common stock during 2025 for a total of $162 million.

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Major global e-commerce platforms including Amazon, Temu and Shein are warning customers in the Middle East about longer delivery timelines as escalating geopolitical tensions disrupt key international trade routes.

According to a report by Bloomberg, the ongoing conflict involving Iran, the United States and Israel has begun to impact global logistics networks, slowing both air cargo operations and maritime shipping into the region.

The disruptions are already affecting cross-border e-commerce deliveries, raising concerns among merchants and logistics providers that delays, rising freight costs and inventory shortages could intensify in the coming months.

Delivery Windows Expand Across Major Platforms

Data from logistics tracking platform 17Track indicates that delivery estimates across several international e-commerce platforms have lengthened since the conflict escalated.

Temu currently lists delivery timelines of 6 to 20 days, compared with its previous 7 to 15 day estimate. Fashion retailer Shein has also extended its delivery window to 8 to 10 days, up from the earlier 5 to 8 days range.

On Amazon, some products now display estimated delivery times of 35 to 45 days, while shipments previously arrived in less than 35 days. In many cases, delivery windows have increased by approximately 10 days compared with pre-conflict estimates.

Merchants Pause Shipments Amid Rising Uncertainty

The growing instability has prompted some sellers to reconsider their logistics strategies in the region.

According to Bloomberg, several Chinese merchants selling through Amazon, Shein and Temu have temporarily paused plans to ship new inventory from China to the Middle East until transportation conditions stabilize.

Huang Lun, a Chinese apparel merchant who expanded his operations to the Middle East last year, said geopolitical developments have significantly increased the risks associated with cross-border trade.

“The Middle East market is a write-off this year,” Huang said, citing rising uncertainty driven by shifting tariffs, tightening regulations in Western markets and escalating conflict in the region.

Global Shipping Routes Under Pressure

The situation is also affecting some of the world’s most critical trade corridors. Maritime traffic through the strategic Strait of Hormuz-a key artery for global shipping—has slowed as security concerns mount.

Several major shipping companies have already adjusted their operations.
MSC Mediterranean Shipping Company has halted cargo bookings to and from the Middle East, while A.P. Moller-Maersk and Hapag-Lloyd have suspended crossings through the strait.

Freight forwarders warn that if disruptions persist, shipping costs and delivery times could potentially double, placing additional pressure on cross-border sellers and logistics providers.

Ramadan Shopping Season Faces Supply Pressure

The disruptions are unfolding during Ramadan, one of the busiest retail periods across the Middle East, when consumer spending and online shopping activity typically increase significantly.

The Gulf region has emerged as a key growth market for global e-commerce platforms such as Amazon, Temu and Shein, driven by a young, digitally connected population that relies heavily on imported goods.

However, ongoing disruptions to international shipping routes and logistics networks could result in longer delivery times, higher shipping costs and potential product shortages, placing additional pressure on retailers and consumers during one of the region’s peak shopping seasons.

Source: Bloomberg

Canva, the global visual communication and design platform, will establish its regional headquarters in Dubai, marking a significant step in the company’s expansion across the Middle East and Africa. The move is supported by the Dubai Chamber of Digital Economy and aligns with the UAE’s national objectives for digital transformation and artificial intelligence.

The agreement was signed during the World Governments Summit 2026 in Dubai, in the presence of Omar Sultan Al Olama, UAE Minister of State for Artificial Intelligence, Digital Economy, and Remote Work Applications, and Chairman of the Dubai Chamber of Digital Economy.

The memorandum of understanding was signed by Saeed Al Gergawi, Vice President of Dubai Chamber of Digital Economy, and Cliff Obrecht, Co-Founder and Chief Operating Officer of Canva.

Under the agreement, the Dubai Chamber of Digital Economy will support the establishment of Canva’s regional headquarters, enabling the company to expand its operations in Dubai and serve businesses and creators across the wider region. The initiative supports Dubai’s strategy to build an integrated digital ecosystem and attract leading global technology companies.

Empowering SMEs Through Digital Design

As part of the collaboration, Canva will provide newly established SMEs operating in Dubai and the UAE with access to dedicated service packages through its digital design and visual communication platform. Scheduled to launch later this year, the packages will offer tools for design, productivity, and content creation, enabling businesses to produce high-quality digital content without the need for specialist design skills.

Commenting on the agreement, Al Olama emphasized Dubai’s commitment to fostering innovation-driven growth:

“Dubai continues to strengthen its position as a global hub for technology and digital innovation, supported by a flexible, business-friendly environment and advanced infrastructure. Our partnership with Canva is designed to enhance SME capabilities and support their growth within Dubai’s advanced digital ecosystem, particularly in creative sectors powered by artificial intelligence.”

Cliff Obrecht highlighted the strategic importance of Dubai for Canva’s regional ambitions:

“Dubai is home to millions of people building and creating at scale. Establishing our regional headquarters here allows us to work more closely with businesses, enterprises, and creators across the region, giving them access to Canva’s tools to bring their ideas to life. We’re excited to be part of what Dubai is building.”

Global Scale, Regional Impact

Founded in 2013, Canva operates in more than 190 countries, serving enterprises, SMEs, consumers, and students worldwide. The company is valued at approximately $42 billion, with over 260 million monthly active users and more than 40 billion designs created on its platform.

In the UAE alone, over 54 million designs were created on Canva in 2025, with nearly one in eight internet users in the country actively using the platform—underscoring Canva’s growing role in the region’s digital economy.

The Dubai Chamber of Digital Economy, one of the three chambers operating under Dubai Chambers, continues to play a central role in expanding the emirate’s digital economy in line with the Dubai Economic Agenda (D33).

Dubai advanced its plans for a new underground passenger transport system called Dubai Loop following the official agreement signed between The Boring Company, founded by Elon Musk, and the Dubai Roads and Transport Authority. Announced during World Governments Summit 2026, the project aimed to bring to life an electric vehicle tunnel network operating non-stop and station-to-station, targeting the reduction of traffic in high-density urban areas.

Dubai Loop was being developed as an express underground transportation model different from traditional metro and rail systems. The project was developed within the scope of the partnership between The Boring Company, founded by Elon Musk, and the Dubai Roads and Transport Authority (RTA). The agreement was signed as part of World Governments Summit 2026.

Non-Stop Travel With Dubai Loop

The Dubai Loop system was designed to enable passengers to reach their destinations directly, instead of stopping at every station as in traditional metro lines. Electric vehicles would operate in narrow tunnels built specifically for this system and would offer shorter travel times between high-density areas.

Dubai officials stated that the system aimed to reduce pressure on surface traffic, improve first- and last-mile connections, and assume a complementary role to the existing transportation infrastructure.

Pilot Route and Planned Network Expansion

According to project details, the total network length of Dubai Loop was planned to reach approximately 22.5 kilometers (14 miles) and include a total of 19 stations. The expansion was expected to form a route extending between Dubai World Trade Centre and Business Bay, covering the city’s most intense commercial and financial districts. Full implementation was expected to take approximately three years.

The first phase of Dubai Loop had a limited scope. The pilot phase was designed as a 6.4-kilometer (4-mile) route with four stations, connecting the Dubai International Financial Centre (DIFC) area with Dubai Mall and the surroundings of Burj Khalifa. Construction was targeted to begin after final design approvals and to be completed within approximately one year.

Designing the stations in a compact structure would enable the creation of more entry points in dense urban areas. The tunnels would have a diameter of approximately 3.6 meters (12 feet) and would be built specifically for vehicle transportation instead of rail systems.

The Cost of Dubai Loop Is 545 Million Dollars

The cost of the pilot line was announced to be approximately 154 million dollars. When the entire network was completed, the total investment amount was expected to reach approximately 545 million dollars.

According to studies conducted by RTA, the pilot segment was projected to serve approximately 13,000 passengers per day. With the completion of the full network, daily passenger capacity was planned to increase to approximately 30,000.

During the construction process, it was planned to use high-speed tunnel boring technologies that were lower-cost and caused less surface impact compared to traditional underground rail systems. Officials emphasized that this approach would minimize the effects on existing roads and infrastructure.

Safety Measures and Operational Oversight

Safety stood out as one of the core elements of the Dubai Loop design. Vehicles were planned to remain in constant communication with an operations control center operating around the clock. The tunnels would include emergency exits, fire detection and suppression systems, ventilation, lighting, and continuous camera monitoring infrastructure. Project representatives stated that the use of electric vehicles reduced certain risks compared to traditional rail systems, particularly onboard fire risks.

Official Statements and Strategic Framework

RTA management stated that the project was aligned with Dubai’s strategy of adopting advanced mobility solutions through global partnerships. Officials identified smoother transportation, stronger integration between transport modes, and improving quality of life for both residents and visitors as key objectives.

The management of The Boring Company stated that the collaboration aligned with Dubai’s long-term urban and transportation plans and highlighted safe and efficient tunnel construction methods suitable for dense city environments.

Dubai Will Become the Second City to Implement a Tunnel-Based Passenger Transport Model

The Dubai Loop project was moved to the implementation phase following feasibility studies initiated by a preliminary agreement signed in 2025. During this process, RTA provided geotechnical data, infrastructure maps, environmental risk assessments, and regulatory standards. The Boring Company, accompanied by international consultancy firms and financial and legal advisors, prepared technical designs, safety documents, and route proposals.

Dubai was expected to become the second city after Las Vegas to implement this tunnel-based passenger transport model. At the current stage, officials stated that the focus was on the performance of the pilot line, the construction schedule, and the operation of the system under real traffic conditions.

Elon Musk Discussed Artificial Intelligence and Technology Cooperation with the UAE President

Azerbaijan brought onto its agenda plans to implement a new value-added tax (VAT) registration mechanism targeting non-resident individuals who sell to buyers in the country through e-commerce. The proposal discussed in parliament was presented as part of a draft amendment to the Tax Code aimed at strengthening oversight of cross-border digital trade.

The regulation in question was discussed at a meeting of the Economic Policy, Industry, and Entrepreneurship Committee of the Azerbaijani Parliament. The proposal aimed to clarify under which conditions VAT registration would become mandatory for goods and services offered online by foreign individuals to customers in Azerbaijan.

The 10,000 Dollar Turnover Threshold and Registration Obligation

According to the draft amendment, non-resident individuals who conduct e-commerce activities through internet-based information resources and are not registered with the Azerbaijani tax authorities will be required to register for VAT electronically if their annual turnover obtained from sales or services provided to buyers in Azerbaijan exceeds 10,000 U.S. dollars within a calendar year. The period granted for registration following the exceeding of this threshold was determined as 30 days.

For non-resident sellers whose annual turnover remains below 10,000 dollars, VAT registration will not be mandatory. Individuals in this group will be able to choose to register on a voluntary basis. While this structure creates a mandatory framework covering high-volume sellers, it aimed to limit the administrative burden for small-scale activities.

The regulation focused particularly on individuals who are resident outside Azerbaijan and carry out commercial activities directed at the domestic market through online platforms. Linking the registration obligation to turnover sourced from Azerbaijan aimed to more clearly define the tax nexus in cross-border e-commerce.

Certain Digital Services Were Excluded from the Scope of the VAT Regulation

In the draft law, certain types of services that were excluded from the scope of the new VAT registration mechanism were also explicitly specified. These exemptions mainly covered professional and educational services provided in a digital environment.

Accordingly, consulting, legal, financial, accounting, design, and engineering services provided via email or other interactive communication tools were excluded from the registration obligation. Real-time online training and educational services, as well as ticket sales related to scientific, educational, cultural, sports, and entertainment events, were also not included within the scope of the regulation.

With these exemptions, lawmakers aimed to differentiate between general e-commerce activities and professional services provided in a digital environment.

The Administrative Framework and the Continuation of the Process

In the draft amendment, it was stated that the procedures and principles regarding the registration, re-registration, or deregistration of non-resident individuals for VAT, as well as the processes related to the submission of VAT declarations and the payment of the tax, would be determined by the relevant executive authority.

This approach provided flexibility to the tax administration in shaping electronic registration and notification systems by allowing the technical and administrative details related to implementation to be regulated through secondary legislation. The emphasis placed on digital processes presented a structure aligned with the online nature of the activities targeted by the regulation.

The regulation showed parallelism with steps taken by many countries globally toward taxing cross-border e-commerce. The draft amendment remained at the committee review stage and has not yet entered into force. For implementation, the completion of the legislative process in parliament and the publication of regulations regarding its application by the executive authority will be required.

A Sharp Increase in E-Commerce Revenues in Azerbaijan Is Expected by 2027

Dubai Chamber of Digital Economy announced that it supported the establishment and growth of 1,690 digital startups in 2025, corresponding to an increase of 39.7 percent compared to the previous year. The results revealed that Dubai accelerated its momentum as a global digital startup hub, particularly in areas such as artificial intelligence, fintech, and platform-based business models.

Dubai Chamber of Digital Economy stated that this growth was a reflection of ongoing efforts to strengthen an innovative business environment supported by advanced infrastructure, agile regulations, and access to international markets. While global companies constituted the majority of the supported firms, this situation demonstrated that Dubai’s attractiveness increased for entrepreneurs seeking to scale at regional and international levels.

Artificial Intelligence, Fintech, and Global Companies Drove Growth

According to Dubai Chamber of Digital Economy, approximately 15 percent of the startups supported in 2025 consisted of artificial intelligence-focused companies, while fintech firms accounted for 12 percent. Companies operating in mobility technologies, software-as-a-service (SaaS), and e-commerce covered approximately 20 percent of the total.

The chamber reported that 75 percent of all companies supported in 2025 were global firms. This picture revealed that Dubai became a preferred entry point for international digital companies targeting Middle East, Africa, and South Asia markets.

Dubai Founders HQ Strengthened the Startup Ecosystem

One of the significant developments of 2025 was the launch of Dubai Founders HQ in October. The initiative was launched by Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai, Deputy Prime Minister and Minister of Defence, and Chairman of the Executive Council of Dubai.

Developed jointly by the Dubai Department of Economy and Tourism and Dubai Chamber of Digital Economy, Dubai Founders HQ was designed as a “phygital” platform that brings together a physical campus and a comprehensive digital ecosystem. The initiative aimed to encourage collaboration, innovation, and scalable growth by bringing together founders, investors, companies, and ecosystem stakeholders.

Omar Sultan Al Olama, Chairman of Dubai Chamber of Digital Economy and Minister of State for Artificial Intelligence, Digital Economy, and Remote Work Applications, stated that the chamber was committed to accelerating Dubai’s transition to a fully integrated digital economy. Al Olama expressed that the strategy focused on providing infrastructure, regulation, and global market access that would enable digital companies to scale from Dubai.

Establishment and Scaling Support Through Integrated Services

The chamber provided corporate services and business matchmaking support together with trusted business partners through the Business in Dubai platform. The platform enabled companies to connect with investors, business partners, and customers to help them launch or expand their operations in Dubai.

In 2025, 48 percent of the supported companies benefited from business set-up services and access to accelerators and incubator programmes, while 31 percent benefited from broader business support services offered through the platform.

Dubai Chamber of Digital Economy’s Talent and Application Development Programmes

In April 2025, Sheikh Hamdan honoured the winners of the Create Apps Championship organised by Dubai Chamber of Digital Economy. The competition, which is part of the Create Apps in Dubai initiative launched in 2023, received more than 5,800 applications in its first two editions and supported the development of more than 55 smart applications.

While the third edition was announced in November, a new Participant Support Programme was also announced to help high-potential teams complete the development process. It was stated that the third edition aimed to support the launch of 50 new applications and would offer funding packages exceeding AED 2.5 million, along with training and mentoring opportunities.

Global Outreach and Thought Leadership

In October 2025, the 10th edition of the Expand North Star event, organised by Dubai World Trade Centre and hosted by Dubai Chamber of Digital Economy, was held at Dubai Harbour. The event brought together more than 2,000 startups and 1,200 investors managing assets exceeding $1.1 trillion.

Throughout the year, the chamber organised 36 sector-focused events and conducted international roadshows in 17 countries, including Australia, Canada, France, Germany, Singapore, the United Kingdom, the United States, and South Korea. These activities reached more than 2,500 digital startups and ecosystem stakeholders.

In parallel, eight reports were published in 2025, including The Entrepreneur’s AI Playbook. The reports aimed to support startups in being established and scaled more efficiently by using artificial intelligence tools.

Dubai Founders HQ to Empower Startups and SMEs in the Region

Across the Middle East and North Africa (MENA), startup investments reached an all-time high in 2025, recording the strongest year to date for the region’s entrepreneurial ecosystem.

According to Wamda’s annual investment report, 647 startups raised a total of $7.5 billion throughout the year; this figure indicated a 225 percent year-on-year increase in total startup investment value. While debt financing constituted a significant portion of the capital raised, the data showed that investor confidence was not limited solely to leveraged transactions. When debt financing was excluded from both years, equity investments increased by 77 percent year on year. This demonstrated that the rise in 2025 reflected broader investor participation.

The Second Half of the Year Determined Startup Investment Volume

Investment activity accelerated markedly in the second half of the year and reshaped the overall picture. Between July and December, 310 startups raised $5.7 billion, while in the first half of the year 335 startups raised a total of $2 billion.

The third quarter proved decisive, with $4.5 billion invested across 180 deals. This increase stemmed from large-scale investments involving companies such as XPANCEO, Ninja, Tabby, Lendo, Property Finder, and Tamara. Tamara’s $2.4 billion transaction stood out as the largest deal of the year and significantly influenced annual totals.

Despite the concentration of capital in a limited number of large transactions, the fact that overall deal activity remained robust showed that investor interest continued beyond headline-making investments.

Saudi Arabia and the UAE Maintained Regional Leadership

Geographically, startup investments were concentrated in the region’s most developed startup markets. Saudi Arabia became the most funded country by raising $5 billion across 211 deals. The United Arab Emirates ranked second, attracting $2 billion in investment across 218 startups and maintaining its appeal to international investors with strong deal volume.

Egypt ranked third, raising $263 million across 89 deals. Although the total investment amount declined compared with the previous year, the increase in deal count indicated that early-stage activity continued in a more cautious investment environment. These three markets continued to account for the majority of total investments in the region, remaining the key centers shaping the direction of the MENA startup ecosystem.

Early-Stage Startups Stood Out in Deal Volume

Despite the prominence of large late-stage investments, early-stage startups accounted for the majority of deal activity in 2025. A total of $1.3 billion was invested across 486 early-stage deals, demonstrating that the region has a strong startup pipeline.

In contrast, late-stage startups raised $1 billion across only 44 deals. The data showed that while investment in scaled companies continued, investors became more selective at the growth stage.

Fintech Maintained Its Leadership

In sectoral distribution, fintech maintained its leadership by attracting $4.4 billion in investment, accounting for 58 percent of total funding. The proptech sector raised $1 billion, while e-commerce startups collected $372.5 million. Investor preference continued to shift toward enterprise-focused business models. B2B startups raised $2.8 billion, surpassing consumer-focused startups. This trend reflected the importance placed on scalable and revenue-driven models in a more disciplined investment environment.

Exits Gained Momentum

Exit activity also gained momentum in 2025. A total of 66 acquisitions took place, representing a 54 percent year-on-year increase. The majority of exits were concentrated in fintech, SaaS, and e-commerce sectors, with the United Arab Emirates, Egypt, and Saudi Arabia standing out as the most active markets. The rising number of acquisitions indicated that the ecosystem had matured and that major players had begun pursuing strategic growth.

Overall, 2025 became a turning point for the MENA startup ecosystem. Record investment levels, strong early-stage activity, and rising exit momentum demonstrated that the region had entered a phase of scaling and selective consolidation, laying the foundations for a more mature and disciplined growth cycle in the years ahead.

The delivery activity sector in Saudi Arabia performed strongly in the fourth quarter of 2025. Over 124 million orders were recorded across various regions of Saudi Arabia, marking a 60% increase compared to the same quarter of the previous year.

According to a statistical bulletin issued by the Saudi Arabian Transport General Authority, the ongoing development of the delivery sector in the Kingdom is happening alongside the support for innovation in logistics services, the expansion in the use of technological solutions, and the increasing reliance on e-commerce. All these factors have contributed to the rising demand for services.

Almost Half of Total Orders Came from Riyadh

According to the authority’s statistics, the Riyadh region accounted for the highest percentage of total orders during this quarter, at 44.45%. The percentages for other regions are as follows: Makkah (22.17%), Eastern Province (15.90%).

Additionally, the percentage of orders in the Madinah region reached approximately 4.95%, while the percentage in the Asir region was recorded at 3.31%. This was followed by the Qassim region with 2.62%, the Tabuk region with 1.81%, the Hail region with 1.67%, and the Jazan region with 1.13%. Meanwhile, the percentages in the Najran, Al-Jouf, Northern Borders, and Al-Baha regions were determined to be 0.68%, 0.61%, 0.49%, and 0.21%, respectively.

Saudi Arabia, Recorded the Highest Monthly E-Commerce Sales of All Time