'Tis The Seaon: MENA E-Commerce Experiences 44% Surge in 2024 Driven By Festive Gifting

The holiday season of 2024 in the MENA region witnessed a significant surge in e-commerce activity, with the market on track to hit a $50 billion valuation by 2025. This period, characterized by festive gifting and a preference for mobile shopping, saw a striking 44% growth. The uplift in e-commerce transactions was notably influenced by the cultural and festive events celebrated across the region, showcasing a clear trend in consumer behaviour towards online shopping.

During this vibrant season, Flowwow, a gifting marketplace based in the UAE, and Admitad, a partnership marketing platform, provided insights into the e-commerce and gifting market trends within the MENA region. Their research indicated a substantial increase in consumer activity, particularly in the year-end festivities.

Flowwow reported a remarkable 62% boost in purchases and an 86% increase in sales turnover from November to mid-December 2024, compared to the same period in the previous year. Furthermore, the average order value (AOV) experienced a 15.76% uplift, reflecting a growing consumer preference for quality items.

Country Specifics

The top five countries with the highest average order value (AOV) in 2024 were Kuwait at $127, the UAE at $102, Egypt at $74, Saudi Arabia at $52, and Qatar at $50. Pakistan took the lead in the sales growth with a 28% increase in 2024, followed by Kuwait at 17% and Saudi Arabia at 8%. The highest GMV growth was observed in Kuwait at 25%, followed by Pakistan at 22%, Saudi Arabia at 21%, Egypt at 15%, Bahrain at 13%, and Morocco at 11%.

The research pointed out that November, with its 44% spike in online orders, was the peak month for e-commerce, largely due to Black Friday sales and the anticipation of New Year and Christmas celebrations. Other significant periods were January and March, which saw online sales boosts of 11% and 14% respectively, driven by Ramadan and International Women's Day. These findings underscore the substantial influence of cultural and festive events on consumer spending habits within the region.

The overall MENA e-commerce market, including gifting platforms, benefitted from this seasonal uplift, buoyed by special promotions and an increasing preference for mobile shopping. The region's e-commerce orders grew by 5% in 2024, with gross merchandise value (GMV) seeing a 10% increase. Additionally, the average order value rose from $30 in 2023 to $36 in 2024, indicating a shift towards higher consumer spending.

Mobile commerce emerged as a pivotal factor, constituting 44.6% of all orders in 2024. Saudi Arabia led in mobile orders, with 62%, followed closely by other countries in the region, highlighting the critical role of mobile-friendly platforms in e-commerce growth. Marketplaces also dominated the e-commerce landscape, accounting for 67% of total sales in 2024, a trend driven by consumer demand for convenience and variety. Admitad's analysis of over 5.6 million orders revealed electronics, fashion, and home and garden as the most popular product categories.

Flowwow's CEO, Slava Bogdan, remarked on the festive season's importance, stating, "The festive season is one of the peak shopping periods for Flowwow gifting marketplace. It's a time when our customers focus on celebrating and sharing joy through thoughtful gifts for their loved ones. Starting with White Friday in November and continuing through the Christmas and New Year festivities, this period represents a critical shopping time in the GCC region, especially with the growing expat population. At Flowwow, we believe in the power of meaningful gifting. By connecting our customers with local shops across the UAE, we ensure their gifts are as unique as their feelings."

Anna Gidirim, CEO at Admitad, also emphasized the evolving shopping habits in the region, saying, "This year's surge in e-commerce activity demonstrates the evolving shopping habits in the MENA region, where mobile-first experiences and marketplace-driven sales have become the backbone of consumer behaviour. Our data highlights how businesses can leverage these trends to optimise their strategies and grow significantly during peak seasons."