Mon 27-03-2023 11:01 AM
DUBAI, 27th March, 2023 (WAM) -- EZDubai, the fully dedicated e-commerce zone in Dubai South, has launched the third edition of its "E-commerce Report in the MENA region" in collaboration with Euromonitor International, the provider of global business intelligence, market analysis and consumer insights.
The report revealed that the MENA region’s total e-commerce market size reached US$37 billion in 2022, with a double-digit growth rate from 2021 and a 32% CAGR over the 2018 - 2022 period.
The MENA’s double-digit growth is due to robust internet usage, a well-developed infrastructure, and supportive policies. Several trends also contributed, including the increasing popularity of digital payment platforms, the rise of online grocery shopping, and expanding tech initiatives.
The UAE, KSA, and Israel accounted for 72.1% of the total market size, with the growth in these countries attributed to factors including their technologically advanced populations, high-internet usage rates, and strong government finances.
The MENA e-commerce market size is expected to reach US$57 billion in 2026, with a CAGR of 11% over the 2022-2026 period. Although countries like the UAE, KSA and Israel are expected to remain leaders in e-commerce market share, countries like Algeria are expected to see strong growth.
Mohsen Ahmad, CEO of Dubai South Logistics District, said, “The MENA region’s e-commerce industry has experienced rapid growth in recent years, driven by a combination of factors. Government initiatives have also played a vital role in supporting this growth, with several regional governments implementing policies to support digital transformation and encourage entrepreneurship and investing in the necessary infrastructure and technology to facilitate e-commerce operations.
At EZDubai, we recognise the strategic importance of e-commerce to the region’s economic development. We are committed to working closely with the government sector, and local and international businesses to further support the growth and success of this dynamic industry.”
Engy Naguib, Senior Engagement Manager, Public Sector MENA region at Euromonitor International, said that the demand for online shopping services in the MENA region is expected to continue growing. In particular, consumer electronics are expected to have a penetration rate of 29% for KSA and 50% in Egypt within total e-commerce by 2026.
Meanwhile, the food and drink industry in the UAE is projected to experience strong growth, with penetration rates reaching 13% by 2026.
EZDubai was designed to attract leading e-commerce companies and create a benchmark with its infrastructure. The e-commerce zone aims to promote the emirate’s position as a hub for regional e-commerce.