The UAE-based digital agency Medialinks published a report titled:The future of e-commerce in the Middle East and North Africa. examining the key drivers of growth. It examines the trends likely to impact e-commerce in the Middle East and North Africa region in 2023.
The report provides an analysis of the current state of the e-commerce market in MENA and identifies the trends shaping this year’s growth. According to it, the MENA e-commerce market is expected to grow significantly over the next few years, with a compound annual growth rate of 15 percent between 2021 and 2023. This growth is due to a number of key factors listed. below
Increasing internet penetration and mobile phone adoption
The number of internet users in MENA is expected to reach more than 200 million by 2023, with the majority of these users accessing the internet via mobile phones. This increase in internet and mobile phone adoption is making it easier for consumers in the region to shop online.
Increasing use of digital payment methods
The use of digital payment methods such as mobile wallets and online banking is also on the rise in MENA. This trend is making it easier for consumers to shop online and is fueling the growth of e-commerce in the region.
Growing demand for online shopping
MENA consumers are increasingly turning to online shopping as a convenient and secure way to purchase goods and services. This trend is fueled by the COVID-19 pandemic, which has led to online shopping as a way to avoid crowded physical retail spaces.
With busy work schedules and hectic lifestyles, consumers in the region are looking for ways to save time and effort when shopping. E-commerce provides an easy and convenient way for consumers to shop from the comfort of their own homes, which has contributed to its growing popularity in the region. One of the dominant e-commerce trends expected in the MENA region in 2023 is the growth of cross-border e-commerce. Cross-border e-commerce refers to the sale of goods and services from one country to another either through online platforms or physical stores.
Additionally, mobile commerce or m-commerce will play a significant role in e-commerce and digital marketing in 2023. According to a report by Arab News, mobile penetration in the region is expected to reach 89 percent by 2023. more and more consumers are turning to their smartphones to shop and buy products and services. This shift is driving e-commerce companies to focus on optimizing their mobile website and app experiences to provide seamless and convenient shopping options for their customers.
