E-Commerce in MENA Report: Opportunity beyond the hype (STV)

Summary

• The global e-commerce industry grew to become a $2.2 trillion market expanding at an annual rate of 24%, four times faster than total global retail.p.5
• Amazon acquired regional e-commerce leader Souq in March 2017 for $580 million.p.5
• In 2017, Mohamed Alabbar launched noon with $1 billion of funding backed by the Public Investment Fund of Saudi Arabia.p.5
• The e-commerce market in MENA is projected to reach $28.5 billion by 2022, growing by 3.5 times.p.22
• E-commerce pure players controlled more than 90% of the MENA e-commerce market as of 2017.p.13

Key insights

1. Online basket size in the UAE and Saudi Arabia averages $150, matching or exceeding typical online spend per basket in the US and UK.p.9
2. Cross-border purchases represented nearly 50% of total e-commerce sales in the GCC in 2017 due to local product selection gaps.p.11
3. E-commerce market share remains fragmented in MENA, with the top two players holding only 25% to 40% depending on the country.p.12
4. Around 62% of online shoppers in MENA prefer Cash on Delivery (COD) as a payment method, compared to under 5% in the UK and France.p.24
5. Average package delivery costs in the UAE and Saudi Arabia are estimated to be more than three times the global best practice for equivalent delivery speeds.p.27