The e-commerce market in the Mena region is predicted to grow substantially over the next few years, with an estimated compound annual growth rate of 15 per cent in the next year, according to a new Medialinks report.
The report entitled The Future of Ecommerce in the Middle East and North Africa: Examining the Key Drivers of Growth suggests that this trend is being driven by an agglomeration of key factors: first and foremost, increasing internet penetration coupled with rapid mobile phone adoption; growing use of digital payment methods; and increasing demand for online shopping.
According to the estimates, the number of internet users in the Mena region is forecast to surpass the 200 million figure by the next year, with a majority of these users accessing the internet via their smartphones. This increase in internet and mobile phone adoption is making it easier for consumers in the region to shop online.
The use of digital payment methods, such as mobile wallets and online banking, is also accelerating across the region. This trend is making it easier for consumers to make online purchases and is driving the growth of e-commerce in the region.
Mena consumers are enthusiastically embracing online shopping as a seamless and convenient way to browse and purchase goods and services. This trend, fueled by the recent restrictions, has necessitated a marked and sustained shift towards online shopping.
Highlights from other recent reports
According to the third annual checkout report Digital Transformation Report in MENA, consumers are adopting digital commerce at an unprecedented rate. Ninety-one of the survey respondents claimed they now regularly shop online. The report also noted that more than half of consumers now shop online at least once monthly- which is up from 47 per cent last year.
In addition, the latest data from Redseer research have predicted the total Mena e-commerce market size to be worth $100 billion by next year.