MENA E-Commerce 2025: The Growth Story Has Only Just Begun
Introduction: A Region on the Rise
The fifth edition of the EZDubai × Euromonitor E-commerce Report (2025) paints an exciting picture of how digital retail is transforming the Middle East and North Africa.
MENA’s e-commerce market has evolved from early digital experimentation into a high-growth, tech-enabled, consumer-driven ecosystem — now poised for its next phase of maturity.
1. Market Overview: From Acceleration to Consolidation
💰 Market Value:
- 2019: USD 13.4 billion
- 2024: USD 34.5 billion
- 2029 (forecast): USD 57.8 billion
That’s a compound annual growth rate (CAGR) of 11% over 2024–2029 — underscoring steady and sustainable expansion.
🏆 Top Markets:
Three markets dominate the region’s e-commerce value:
- Saudi Arabia (KSA)
- United Arab Emirates (UAE)
- Iran
Together, they account for more than 70% of total MENA online retail spend.
Despite global economic headwinds, these countries continue to benefit from youthful demographics, strong infrastructure, and government-led digital transformation agendas.
2. E-Commerce Penetration: Big Potential, Small Share
As of 2024, online sales account for only 4% of total retail across MENA, compared to 26% globally.
Even the region’s most developed digital markets – the UAE (14%) and Saudi Arabia (8%) remain well below the global average.
This gap represents a massive untapped opportunity: as logistics networks, digital payments, and consumer trust mature, MENA’s online retail penetration could easily double by the end of the decade.
3. Core Growth Drivers Across MENA
📱 Mobile-First Commerce
Smartphones are now the main shopping gateway.
MENA’s mobile-commerce sector has quadrupled in value since 2019, reaching around USD 13 billion in the UAE and KSA combined.
Events like White Friday have made mobile-first campaigns central to sales strategies, with responsive design, one-click checkouts, and app-based loyalty becoming baseline expectations.
💳 Fintech & Payment Innovation
Digital wallets, BNPL (Buy Now, Pay Later), and e-money are transforming payment habits.
In the UAE, wallet usage rose to 53% in 2024, while cash-on-delivery continues to decline.
In Egypt and Saudi Arabia, new fintech ecosystems are expanding financial inclusion and driving higher e-commerce conversion rates.
🤖 AI & Agentic Commerce
Artificial intelligence is no longer a trend – it’s the infrastructure of modern e-commerce.
AI-powered shopping assistants like Amazon Rufus, Talabat AI, and Yango Yasmina are personalizing product discovery and checkout.
These “agentic” systems powered by Generative AI provide real-time recommendations, conversational support, and predictive suggestions, bridging the gap between search and purchase.
🚚 Logistics & Policy Reform
The region’s logistics transformation is equally significant.
From Saudi Arabia’s Vision 2030 infrastructure investments to UAE’s voluntary e-commerce compliance pledge and Africa’s AfCFTA initiative, regional governments are streamlining customs, building fulfillment centers, and enabling cross-border trade with new efficiency.
4. Category Deep Dive: What Shoppers Buy Online
| Category | Growth Highlights | Key Drivers |
|---|---|---|
| Apparel & Footwear | Largest category by value | Fast fashion, resale platforms, and AI-driven styling tools (e.g., Taffi’s Amira AI) |
| Food & Drinks | +49% CAGR (2019–24) | Q-commerce and partnerships with Careem, Deliveroo, Talabat |
| Home Care | +40% CAGR (2019–24) | Subscription models, bundled deals, instant delivery |
| Consumer Electronics | Steady double-digit growth | BNPL adoption, launch exclusives on Amazon.sa and Noon |
| Beauty & Personal Care | Fast-growing and highly visual | AR try-ons, live shopping, influencer-driven engagement |
This diversification proves that e-commerce in MENA has moved well beyond fashion — expanding rapidly into everyday essentials and experience-based categories.
5. Consumer Behavior: Digital Confidence Rising
Consumers across the region are increasingly confident online – but also more demanding.
Top expectations include:
- Free delivery & easy returns
- Personalized offers & loyalty benefits
- Secure digital payments
- Sustainability and trust
Brands are responding with instant refund vouchers, click-and-collect options, and cross-brand loyalty ecosystems (like Carrefour’s Blue Rewards or Alshaya’s Aura).
6. The Rise of “Value-Based” Shopping
Persistent inflation and economic uncertainty have cemented a value-driven mindset.
Shoppers actively seek deals, flash sales, and affordable imports – fueling the rise of Temu, Shein, and other low-cost platforms.
In fact, Temu’s monthly active users doubled in 2024, reshaping expectations for price, variety, and gamified shopping experiences.
This shift has also pushed global giants like Amazon to respond – launching Amazon Haul, a dedicated budget-friendly platform for sub-$20 items.
7. The Loyalty Revolution
Loyalty programs are evolving from transactional to experiential.
Consumers now expect instant gratification, personalized rewards, and cross-channel recognition.
Gamified systems such as Ulta Beauty’s GlamXplorer and fintech tools like Pointspay (converting loyalty points into instant cash) show how loyalty is becoming both digital and dynamic.
For MENA, this trend aligns perfectly with regional shopper behavior – young, mobile, and engagement-driven.
8. The Next Phase: From Access to Experience
MENA’s e-commerce ecosystem has matured from simply being online to delivering meaningful, data-powered experiences.
The next five years will be defined by three converging forces:
- AI-powered personalization across every stage of the funnel
- Seamless mobile ecosystems integrating payments, loyalty, and content
- Cross-border scalability that turns regional platforms into global players
Conclusion: The Growth Story Has Only Just Begun
At just 4% digital retail penetration, the MENA region stands at the beginning of its true e-commerce journey.
While the infrastructure is in place – logistics, policy, and payments – the competitive edge will come from how brands use technology to personalize, simplify, and humanize the shopping experience.
The winners of the next phase will be those who merge intelligence with empathy, blending AI insights with local relevance to deliver value beyond price and convenience.
Key Message for Industry Experts:
👉 The market isn’t saturated – it’s under-digitized.
There’s enormous room for growth, innovation, and leadership for those who move fast and think regionally.
Credit: EZDubai
Detailed Report: https://www.ezdubai.ae/uploads/682b1ad891fe3_E-commerce_Report_2025_(Light_Version).pdf
