The Impacts Of E-commerce On The Economic Situation In MENA Region - Sadad


The Impacts Of E-commerce On The Economic Situation In MENA Region

31 Oct 2019 Share

According to a study published by E-marketer, the e-commerce market in the Middle East and North Africa (MENA Region), sales in 2019 reached $ 34.69 billion. It is expected to increase to $49 billion in 2021, and become one of the world’s most developed markets.

Recently, e-commerce has been grown in the Middle East, but it has not got to the top yet. According to Global Web Index, Asia is at the top of international markets with 82%. Followed by North America and Europe 73%, South America 65%. Followed by the Middle East in the last position, despite its annual growth rate of up to 30%, up 52%.

The Impacts Of E-commerce On The Economic Situation In MENA Region - article image

These ratios and statistics tell us that we – as the Middle East – are not coping with the progress of e-commerce. But we are still trying. Many Arab countries such as Qatar, Egypt, Saudi Arabia and the UAE have been able to penetrate this market and give many positive indicators and promising.

In this article we are going to discuss the area of ​​e-commerce in the Middle East according to official statistics. Also, we will highlight the impact of these ratios on the economic situation in the region.

E-Commerce In The Middle East And North Africa (MENA Region)

Middle East is very poor in e- purchasing. Although it is a huge, fast growing market. According to a report published by Narrative in 2018 MENA E-commerce report 2018, 80% of e-shoppers in the Middle East have increased their purchasing habits over the past 12 months and 42% of traditional shoppers aware that they will resort to e-transactions at some point in their lives.

According to the same study, men count for 65% of the e-commerce market in the Middle East, while women count for only 35%. If the distribution of shoppers according to their functions and their relationship to the rate of purchase,  managers will come in first place by up to 16%, while the rate of technical experts will reach about 15%, followed by third place students by 14%, and housewives by 8% . Technicians and the unemployed as well as sales representatives by 6%, then retired by 5%, then persons working in public services by 4%, then workers and drivers in the last position by 2%.

62% of e-shoppers in the Middle East make at least one purchase every three months, more than 15% per month, and over 10% buy online every week.

58%  of the Middle East shoppers prefer to use their mobiles in e-shopping, while 33% prefer using computers, and 9% prefer tablets.

Clothing and accessories are at the forefront of the most popular products online, accounting for 43% of total purchases, followed by shoes and sportswear in second place with 29%, tickets in third place with 27%, hotel reservations in fourth place By 26%, followed by electronics in fifth place by up to 24%. There are other percentages of personal care products, toys and gifts. The five most sought after areas of e-commerce in the region are clothing, sports shoes, airline tickets, hotel reservations and electronics.

From these percentages, you can easily conclude that the overall climate in the region is highly geared to e-commerce and its growth. If the e-commerce can grow at a rate of 1500%  during the past decade, and in a more complex environment and less culture and development from now, what can be the case during the next decade with all these rates?!

The Importance Of E-commerce For The Economic Situation In The Middle East

E-commerce, especially in the Middle East, has helped solve many problems and economic issues:

  • Economic Growth

E-commerce has helped countries in the Middle East to grow and expand their economies. Thanks to the services that this trade gives to its users, there is ample opportunity to set up private enterprises, expand the work of individuals, and cooperate with major international entities. All these possibilities were not only beneficial to the owner of the project or countries, but also to the citizen because of the increase in the rates of production and growth, which increases both the standard of living and wages.

  • Increase Exports

E-commerce has a significant impact on the export process. So, it works to support foreign trade, its promotion among international e-markets, and the strengthening of trade relations with countries.

E-commerce facilitates business deals between business men, making it easier to set up a global business network that produces many successful deals.

The advantage of e-commerce is that it can easily adapt to the ongoing changes in the export market. Unlike conventional trade, either side of the deal can turn off order without affording extra money.

  • Increase Investment Opportunity

E-commerce creates great investment opportunities in the region where it grows. The availability of this type of trade means that the citizens of this region have an adequate purchasing power and a modern business culture, and it is easy to attract and persuade them with any new marketing product.

Thanks e-commerce, many creative ideas compete with sponsors and investors, making it an attractive area for this type of business.

  • The Elimination Of Unemployment

The existence of e-commerce in an area where the rate of the unemployed is increasing has given its citizens the chance to have additional income in other non-traditional ways. With e-commerce, anyone can own a private e-store, without having to trace all the traditional conditions that are unfair.

E-commerce also creates more opportunities for small and medium-sized entrepreneurs, where they can easily profit by making e-purchases or promoting their business through the famous freelance platforms. With e-commerce and secure e-payment gateway, they can make buying and selling easily.

All these features are just a small impact of e-commerce for Middle East and its citizens. If you would like to be an individual in this area, I would advise you to turn to its first supporter in the region, SADAD Payment Solutions.

With SADAD app, you will not only enjoy a smart application that manages your deals, but also you can:    

  • Create an e-store
  • Follow up of purchase orders
  • Remote billing management
  • Implementation of financial transfers
  • Bank deposits

In addition to all of the above, SADAD gives you a secure payment gateway to your website, you can use at any time, without the need to incur a financial fee.

Download SADAD now from the Google Play Store Here, or from App Store Here.

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