MENA E-commerce report 2023 remarkable transformation

BusinessLeave a comment

The Middle East and North Africa (MENA) region is witnessing a remarkable transformation in its e-commerce landscape. With a market currently valued between $50 billion and $100 billion, growing at a robust annual rate of approximately 14%, the region is quickly becoming a global hotspot for online retail. Key players like the UAE, Saudi Arabia, Israel, and Iran are leading the charge, while the rapidly expanding online sales in Egypt and other GCC territories present lucrative opportunities for brands. Let’s delve deeper into the key insights and future outlook of the MENA e-commerce market. Market Size and Growth Estimated Value and Growth Rate:The MENA e-commerce market is valued between $50 billion and $100 billion and is growing at an impressive 14% annually. This rapid growth is fueled by technological advancements, increased internet penetration, and a young, digitally-savvy population. Key Markets:The UAE, Saudi Arabia, Israel, and Iran dominate the region’s e-commerce sales. However, Egypt and other GCC countries are also emerging as significant contributors to the market’s expansion. Population and Internet Penetration Demographics and Connectivity:The MENA region boasts a population of over 400 million people, with a high percentage of tech-savvy individuals. Smartphone adoption stands at 78% across the region, with the UAE leading the way at over 96%. By 2028, it is estimated that high-quality 5G connections will reach more than 270 million people in the region, further enhancing online retail opportunities. Consumer Behavior Online Shopping Trends:According to a survey by Checkout.com, 91% of people in the MENA region regularly shop online. Additionally, 52% of residents reported increased online shopping frequency in 2022 compared to 2021. Notably, 9% of GCC consumers spend money online every day, indicating a strong preference for online retail channels. Key Drivers of Growth Young, Digitally Savvy Population:A significant portion of the MENA population is young and comfortable with digital technology, driving e-commerce growth. High Internet and Smartphone Penetration:The widespread availability of affordable internet and smartphones facilitates easy access to online shopping platforms. Government Initiatives:Governments in the region are investing heavily in digital infrastructure and encouraging online businesses, providing a conducive environment for e-commerce growth. Covid-19 Impact:The pandemic accelerated the shift towards online shopping as lockdowns and social distancing measures pushed consumers to shop online. Challenges Logistics and Delivery:Efficient logistics and delivery remain challenging in some parts of the region due to infrastructure issues. Payment Systems:While cash on delivery is still prevalent, the adoption of digital payment methods is increasing but requires further improvement. Regulatory Environment:Navigating the regulatory landscape can be complex for international businesses due to differing laws and regulations across countries. Opportunities Niche Markets:There are opportunities for businesses to tap into niche markets such as luxury goods, fashion, electronics, and groceries. Cross-border E-commerce:With the rise in cross-border trade, businesses can expand their reach beyond local markets. Innovation and Technology:Investing in advanced technologies like AI, big data, and augmented reality can enhance the online shopping experience and drive growth. Future Outlook The MENA e-commerce market is poised for continued growth. With increasing investment in digital infrastructure, rising consumer confidence in online shopping, and a young, tech-savvy population, the region offers substantial opportunities for e-commerce businesses. By addressing the existing challenges and leveraging the growth drivers, brands can establish a strong online presence and capitalize on the burgeoning e-commerce market in the MENA region. #MENAeCommerce #DigitalTransformation #OnlineRetail #EcommerceGrowth #MiddleEast #NorthAfrica #BusinessOpportunities

Doing business in the UAE

World NewsLeave a comment

Enthusiasm grows in UAE as businesses licenses increase in Dubai lately. Business licenses created in 2014 rose with 13% compared to the previous year, which shows that business is flourishing in Dubai. Business experts in UAE report on the latest news. There have been many comments about UAE acting as a connection between the Middle East and the West; Emirates are known to be breaking ground when it comes to pro-business policies and encouraging foreign investment. Their endeavors to assist new businesses to invest in the Emirates can only be compared with Qatar. Looking at the latest rates made public lately, these endeavors have not been in vain. The DED (Dubai’s Department of Economic Development) announced a growth of 13% in the number of business licenses created in 2014, totaling a number of 21,358 as opposed to 18,848 in 2013. There is a high degree of enthusiasm that abounds in the UAE economy, primarily because the investment has increased in multiple sectors: the biggest growth was in industrial licenses, followed by tourism and commercial licenses and lastly, professional licenses. If we consider the arrangements made for the Expo 2020, we can definitely say that Dubai is and will remain the capital of foreign investment for the Middle East for many years to come. AT A GLANCE An increment in the number of amended licences has occurred between 2013 when there were 74,859 and 2014 with 85,548; this means a raise of 14%. There was a 4% raising from 114,218 to 118,953 on the number of total renewed licences. In 2014 total transactions completed reached 577,400. An increment of 12% of reserved trade names occurred between 2013 with 74,750 and 2014 with 83,599. Initial approvals have grown to 38,580, meaning 14% increment. A growth rate of 17% was accounted for the number of licences from Limited Liability Companies (LLC), from 2013 with 12,549 until 2014 with 14,701. An increase of 6% occurred for single ownership licences, from 2013 with a total of 5,090 until 2014 with 5,375. In 2014, licences from subsidiaries of free zone companies illustrated 129% increase – 103 in total, and 2013 was 45. The number of foreign companies’ subsidiaries licences incremented by 15%, public shareholding companies by 36%, and private shareholding ones had raised by 43%. A report of 67% of the total expected licences was registered in 2014, succeeded by Single ownership companies with 27% and Civil Works companies with 4%.