Forecast for e-commerce in MENA positive for 2014
Sector set to grow to $40 billion in next three years
January 28, 2014 4:48 by kippreport
The e-commerce sector in the MENA region celebrated the end of 2013 with higher incomes and the forecast for this year is very optimistic, reveals recent research.
According to Paypal Insights – ecommerce in the Middle East 2012-2015, the e-commerce market is set to grow to more than $40 billion in the next three years, while m-commerce in the Mena region is set to reach $3bn in 2015.
Another study, conducted by eMarketer, reveals that the total B2C e-commerce sales in the Mena region will reach $45.4bn in 2017, when compared with $14.4bn in 2011, which is a 300 per cent growth rate in sales. Moreover, according to EConsultancy, 66 per cent of consumers in the Mena region use the internet to search for products and services online. That said, according the Paypalstudy,the biggest e-commerce markets in the region are Saudi Arabia and the UAE, which lead the region in terms of internet transactions globally.
However, despite the breakthrough of e-commerce in the region in the past decade, it still lags behind western societies. Yet, the region has seen a rapid increase in the number of internet users over the years, which reached 90,000,455 in 2012. Today, mobile transactions in the Mena region account for ten per cent of e-commerce activity and, with the current growth rate, it will rise by 20 per cent in the next two to three years.
Based on the rise in the number of internet users and the continuous increase of the population in the Mena region, the e-commerce market has spread to many industries and, today, more start-ups in the region prefer to set up, and offer all their products and services online.
The following are some of the successful start-ups in the region that adapted themselves earlyenough to catch the e-commerce wave from the beginning:
- Zanedo: The Dubai-based start-up is a shopping site that offers beauty and self-care products, as well as several regional and global brands available for women and men throughout the GCC region and Africa.
- Triperna:Is a consumer travel e-commerce company that enables the users to search and book hotels packages worldwide. The website is focused on serving the Emirati and Saudi Arabian consumers.