Mena’s e-commerce sector is on pace to reach $57 billion in 2026, according to B2B marketplace Tradeling.
This comes at a time when global e-commerce retail sales are forecast to hit around $7 trillion by 2024. The global forecast growth rate for 2023 stands at 8.9 per cent, bringing e-commerce sales worldwide to $5.9 trillion in 2023, a 1.8 per cent increase from last year, said Tradeling.
Last year, its e-commerce market size reached $37 billion.
Various critical factors have contributed to this trend including the lifting of restrictions, the region’s strong economic stability, modern infrastructural development, rapid technological advancements and several government-led initiatives. A proliferation of e-commerce services apps also proved to be a driving catalyst as digital usage soared.
Before the onset of the restrictions, the sector was expected to reach $20 billion in value. However, lockdowns and resultant heavy reliance on online shopping forced 91 per cent of consumers in the region to become digital converts.
This more than doubled previous expectations to elevate Mena’s e-commerce value to $55 billion in 2020.
The 2024 expected rate of the global e-commerce industry is $6.07 trillion, which is in line to reach an estimated projection of $7 trillion globally by 2026.
When it comes to the UAE, the country has been recognised as the world’s fastest-growing e-commerce market not only in the Mena region but across the globe.
CEO of Tradeling, Marius Ciavola, said: “The unfortunate circumstances of the pandemic saw international interest in e-commerce exponentially increase.
“The Mena region has become a major contributor to this upward trajectory, and the UAE has stood at the forefront to spur this momentum. With the country making great innovative, technological, and financial strides and investments in the industry, the region is well-positioned to contribute a significant amount of value to the projected global growth of the industry. With the convenience and ease that e-commerce brings to customers, it is further enhancing the industry’s upward mobility and stability, and this trend will hold steady as the world continues to evolve in digital nature.”
