The MENA e-commerce industry is experiencing a rapid transformation, driven by technological advancements, shifting consumer behaviour and strong government-backed digital initiatives.
According to the latest Flowwow & Admitad report, online orders in the region surged by 30% in 2024, with Saudi Arabia and the UAE leading the charge in Gross Merchandise Value (GMV).
This remarkable growth is a testament to rising consumer spending, mobile commerce adoption and AI-driven personalisation, which are reshaping the online shopping landscape across the Middle East.
But what’s fuelling this surge, and what can we expect in 2025?
Powerhouses of MENA’s E-Commerce Market
The UAE and Saudi Arabia are setting the benchmark for e-commerce expansion in the region.
- Online orders in the UAE grew by 7%, while Saudi Arabia saw a 9% increase, outpacing the MENA average growth of 5%.
- Average Order Value (AOV) also climbed, rising from $30 in 2023 to $35.6 in 2024.
- The UAE recorded an increase from $89 to $102, while Saudi Arabia’s AOV jumped from $49.6 to $52.5.
This increase reflects stronger consumer spending and an evolving digital payments ecosystem, making transactions faster, more seamless and more secure for shoppers across the region.
Key E-Commerce Trends Driving Growth
1. AI-Driven Personalisation and Fintech Innovation
Retailers are leveraging artificial intelligence (AI) to enhance user experiences through personalised recommendations, predictive analytics and automated customer support. As AI integration deepens, frictionless payments and smarter checkout processes are becoming industry norms.
2. Rise of Community-Based Shopping
Social commerce is booming, with platforms like TikTok, Instagram, and Pinterest transforming into full-fledged shopping hubs. Brands and merchants are building community-driven engagement strategies to drive sales, leveraging user-generated content, live shopping events and influencer marketing.
3. Expansion of Digital Payment Methods
The adoption of buy now, pay later (BNPL) solutions, digital wallets and cryptocurrency-based payments is rising. Consumers in Saudi Arabia, the UAE and Egypt are embracing mobile-first payment solutions, contributing to increased checkout conversion rates and reduced cart abandonment.
4. Government-Led Digital Transformation
Strategic government initiatives such as the UAE’s Digital Economy Strategy and Saudi Arabia’s Vision 2030 are fostering an innovation-friendly ecosystem. These programs focus on:
- Encouraging digital payment adoption
- Enhancing e-commerce logistics
- Strengthening cybersecurity measures
These factors contribute to an efficient online marketplace and support businesses in scaling operations more effectively.
Gifting and Experience Economy: A Fast-Growing Segment
One of the standout trends in MENA’s e-commerce market is the rapid growth of the gifting and experience economy.
The UAE’s gifting market, in particular, saw an astonishing 200% growth in 2024.
- Dubai led the market, recording over 11,000 customers annually, with an AOV of 352 AED ($96).
- Flowers accounted for 43.5% of total purchases, followed by confectionery, bakeries and balloons.
This shift reflects evolving consumer preferences toward personalised and experience-driven purchases, with digital platforms facilitating seamless online gifting experiences.
What’s Next for MENA E-Commerce in 2025?
The $50 billion MENA e-commerce market is poised for further expansion in 2025, with GMV projected to grow by 300%, reaching an estimated $6 million.
Key growth drivers include:
- Wider adoption of embedded finance and BNPL services
- Greater cross-border e-commerce penetration
- Increased automation in order fulfilment and logistics
- Enhanced AI-driven fraud prevention tools
The e-commerce revolution in MENA is far from over. With innovation, digital payments and government backing paving the way, the region is set to level up with global leaders in online retail transformation.
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