The per capita disposable income in the Middle East is high, while the proportion of e-commerce in the social retail industry is low, and the growth potential is large. Speaking of the Middle East, is the first impression of cross-border sellers “oil”? “Tyrants”? But whether this golden land is suitable for cross-border e-commerce, I believe many sellers are a little confused. Today, I will share with sellers the development of e-commerce in the Middle East and provide a reference for sellers to enter the Middle East market.
The total population of the Middle East (including only the UAE, Saudi Arabia, Egypt, Kuwait, Qatar, Bahrain and Oman) is about 150 million, with a total area of about 3.66 million square kilometers. The country has close trade relations with China, and the population is obviously younger. In addition to oil and money, the Middle Eastern people also have a huge population base, a young e-commerce group and broad import and export trade opportunities!
1. Demographic dividend and strong purchasing power!
The per capita GDP is the highest in the world, and the per capita disposable income is also high. Compared with other countries, the proportion of e-commerce in social retail sales is very low, which is in sharp contrast to the region’s per capita GDP, which is at the forefront of the world. There is huge room for growth in the future. In the Middle East, the average unit price of e-commerce is $150, especially in the UAE and Saudi Arabia, where the unit price is even higher than that in the United States and the United Kingdom.
2. E-commerce is developing rapidly, and online shopping is hot!
The Internet penetration rate in the UAE has reached 100%, ranking first in the world, and Saudi Arabia ranks behind at 92%. E-commerce transactions in the Middle East reached $22 billion in 2020, with the UAE and Saudi Arabia contributing 55%. With the normal development of the epidemic, the e-commerce market size in the Middle East is expected to reach $50 billion in 2025, and the growth rate of e-commerce is expected to reach 110%.
3. Bilateral trade relying on imports.
Since 2011, China has become the largest trading partner of the UAE-Saudi Arabia. By 2020, the UAE’s imports from China reached $32.31 billion. Saudi Arabia’s imports from China were $23.92 billion, an increase of 17.8% over last year. For example, televisions are household appliances in the UAE, which are mainly imported from China. In 2019, the export value reached US$397 million, accounting for 27.53% of China’s total household appliance exports9. In the same year, China was also the largest source of clothing imports for Saudi Arabia. Middle Eastern consumers are increasingly favoring “Made in China”.
In the Middle East, there is a lack of other industries besides oil, especially light industry, and there is a strong dependence on daily consumer goods. People have great consumption needs, and they can shop online anywhere, which is more convenient than traditional offline consumption. Strong demand and insufficient supply are a notable feature of the Middle East.
The above is the development status of e-commerce in the Middle East shared with sellers. For sellers, the Middle East is still a good place to make money. Sellers can choose the Middle East market for cross-border e-commerce business according to their actual situation. Finally, I wish the sellers a big sale.