MENA E-Commerce Orders Surge By 30% In 2024, Led By UAE And Saudi Arabia
The e-commerce and gifting sectors in the Middle East have experienced remarkable growth in 2024, with the market reaching a valuation of $1.8 billion. This surge is attributed to a significant uptick in online orders, particularly in the UAE and Saudi Arabia, which saw increases of 7% and 9% respectively.
The UAE and Saudi Arabia have emerged as pivotal contributors to the e-commerce market's expansion, reflecting the broader trend across the Middle East and North Africa (MENA) region, which includes Turkiye and Pakistan.
Analysis of over 6.8 million online orders has highlighted not only the dominance of these nations in terms of gross merchandise value (GMV) but also the significant roles of Kuwait, Turkiye, and Egypt. These countries' digital advancement and large populations have propelled them into the top five in the region.
Increased mobile commerce has also positively impacted markets like Morocco, Pakistan, Qatar, Algeria, and Bahrain, alongside the notable rise in average order values (AOV) across MENA. From 2023 to 2024, the AOV in the region jumped from $30 to $35.6, with the UAE and Saudi Arabia witnessing substantial rises in their AOVs to $102 and $52.5, respectively.
Various product categories have witnessed growth in MENA, with online gaming leading the charge with a 32% increase in orders. The demand for digital entertainment, professional solutions, and online retail is evident, with B2B services and fashion also registering significant growth. In the UAE, the rise in B2B online services and online gaming was particularly notable, alongside increases in electronics, home goods, and car products.
Government initiatives across the UAE and MENA, aimed at supporting digital transformations, have played a crucial role in these developments. Strategies focusing on technological innovation and AI capabilities, such as the UAE's Digital Economy Strategy, Saudi Arabia's Vision 2030, and the Arab Digital Economy Vision, have been instrumental in creating a more efficient and consumer-friendly online ecosystem.
"MENA e-commerce is moving toward AI-driven personalisation, community-oriented strategies, tailored marketing approaches, and content platforms like TikTok and Pinterest as key shopping hubs for Generation Z. While AI streamlines processes, human-centric customer service remains irreplaceable for trust and loyalty in the e-commerce industry," stated Anna Gidirim, CEO of Admitad.
The impact of a younger consumer base, along with a growing inclination towards online shopping, has been particularly pronounced in the gifting segment. This trend is set to continue shaping the sector's future.
In the context of the booming e-commerce market, online payments, and increasing incomes, the MENA region, and particularly the UAE, has seen a surge in the experience economy and online gifting. The UAE's gifting market is anticipated to grow at a compound annual growth rate (CAGR) of 14.7% from 2024 to 2030. This market's growth is fueled by the presence of over 200 nationalities and a rich gift-giving culture.
Flowwow's data reveals a potential expansion of the MENA gifting market to $6.38 billion by 2030. In 2024, the platform attracted over 13,000 customers in the Emirates alone, generating more than 20,782 gift orders annually and seeing a revenue increase of 212.6%. The number of gift purchases and buyers in the UAE saw remarkable rises of 198.21% and 160.03%, respectively, from 2023 to 2024.
The company's success has been bolstered by the expansion of its seller network, innovative mobile app features, and marketing campaigns tailored to resonate with local traditions. Dubai leads in sales, showcasing the highest average order cost, followed by Ras al-Khaimah, Abu Dhabi, Ajman, and Sharjah. This demonstrates the robust performance of Flowwow's gifting marketplace within the UAE's vibrant market.
In terms of popular categories, flowers dominated in the UAE, representing 43.5% of total purchases in 2024. Confectionery, bakeries, bento cakes, and balloons also saw growth, further illustrating the diverse range of gift options preferred by consumers.
The gifting marketplace's Gross Merchandise Value (GMV) in the UAE reached $1.5 million in 2024, marking a 170% growth year-over-year. With a projected GMV exceeding $6 million by 2025, the marketplace expects to capture a 20-25% market share, a significant increase from 6% in 2024.
"The development of the e-commerce and gifting markets, along with support for local entrepreneurship (SMEs), drives economic growth and creates new opportunities for both individuals and local businesses in the region. The MENA region, with the UAE in particular, leads the drive in our company's development in the global market.
"Our record-breaking 2024 results have set the stage for even greater growth to come. In 2025-2026, we are expecting a 4x increase and YoY growth of +300% in the region," commented Slava Bogdan, CEO of Flowwow.
As the MENA region's $50 billion e-commerce market continues to evolve, the focus on user-friendly technology, community-driven mechanics, and personalized mobile shopping experiences remains paramount.
Predictions for 2025 suggest continued growth driven by digital economy expansions and supportive government initiatives across the region, setting a promising trajectory for the e-commerce and gifting markets.
Sign in with Google