From Morocco in the east to Turkey in the north and Somalia in the south, there are 25 countries and regions including Bahrain, Egypt, Iran, Iraq, Israel, Jordan, Kuwait, Lebanon, Oman, Qatar, Saudi Arabia, Syria, United Arab Emirates (UAE), Yemen, Palestine, Cyprus and Turkey, with a population of 430 million in 2020.
These countries have their own languages, consumption habits and payment habits. No matter which market you enter, localization is the key to success if you want to deepen your presence. Although the e-commerce market in the Middle East only accounts for 2% of the retail market share, it has achieved rapid growth in the past five years, from US$4.2 billion in 2015 to US$22 billion at the end of 2020, and to US$50 billion in 2022. The market potential is huge. The population aged 15 to 29 accounts for 28%, and the average age is 22, which is lower than the global average age (28). The younger generation relies on the Internet and smartphones, and the growth of e-commerce is completely expected, and the per capita wealth in the Middle East is the highest in the world. The Internet usage rate in the Middle East is quite high. The Internet usage rate in Bahrain is as high as 99%, and the Internet penetration rate in the UAE is as high as 100%, ranking first in the world.
Main e-commerce markets: UAE, Saudi Arabia, Qatar.
Consumption characteristics: Many countries in the Middle East are oil-producing countries and are very wealthy, so they are quite enthusiastic about online shopping. Many families in the Middle East have large structures. For example, in Saudi Arabia and the UAE, the average family has more than 5 people, and the demand for daily household goods is very large. The population structure of online shoppers is young. Same-day delivery, physical experience, and efficient return processing are the key concerns of online shoppers.
Due to the large number of countries in the Middle East, localized logistics and warehousing are very important for cross-border e-commerce in the Middle East. Returns need to be highly controlled, especially for sellers in the clothing category. Ramadan, Eid al-Fitr, “White Friday” and other nodes in the Middle East are important periods for online shopping. In addition, there are special festivals in various countries. Fashion, consumer electronics, and family life are the three most popular categories in the Middle East.