Middle East B2C Ecommerce Market Size & Forecast by Value and Volume Across 80+ KPIs - Databook Q4 2025 Update

Key Trends and Drivers

Shift to cashless payments anchors formal e-commerce growth

• Across the Gulf and key African markets, online retail is shifting away from cash-on-delivery towards cards, wallets, and instant-pay rails. In Saudi Arabia, e-commerce spending via the domestic mada card network reached SR29.86 billion (~$8bn) in July 2025, up 79% year-on-year, with 149.7 million online transactions. Electronic payments already account for 79% of all retail transactions in 2024, up from 70% in 2023.
• In Egypt, the real-time payments app InstaPay has scaled from 11.5 million registered users and $3.6bn in transactions in its first year to about $53bn in annual transaction value by 2024, according to figures compiled from Egypt’s Central Bank and banking institute. In 2024, Egypt’s financial inclusion reached 74.8% of adults (52 million people) using transaction accounts, up from 27% in 2016, supported by the Meeza national card scheme and QR-based merchant acceptance.
• Policy mandates: Saudi Arabia’s payments push under Vision 2030 explicitly targets dominance in online payments; SAMA’s new e-commerce payments interface and the rollout of Apple Pay/Google Pay on top of mada rails lower checkout friction. Infrastructure and inclusion: Egypt’s National Payments Council and cashless-transaction laws have forced government entities and many merchants to accept electronic payments, while mobile-wallet products (Vodafone Cash, Orange Cash, BM Wallet) reach previously unbanked segments.
• Mobile-first consumer behaviour: In Kenya, M-Pesa now serves over 51 million customers and 604,000 agents across Africa, with mobile wallets the preferred way to pay and to receive remittances. This normalises digital payments as the default for online shopping.
• Expect the cash-on-delivery share to fall sharply in the GCC and major African economies as regulators continue to tighten transparency and financial inclusion requirements, and as merchants see higher approval rates and lower leakage from cards/wallets. For platforms, higher digital-payment penetration supports higher ticket sizes, subscription models and cross-border sales, because refunds and recurring billing become operationally easier. Over 2-4 years, this will intensify competition: smaller merchants can onboard easily via wallets and QR codes, while incumbents that still rely on COD will face higher returns and fraud than fully digital rivals.

State digital strategies rewire retail and platform investment

• Governments are treating e-commerce as part of national digital-economy strategies, with quantified targets that directly shape how platforms invest.
• The UAE’s Digital Economy Strategy aims to raise the digital economy’s share of non-oil GDP from about 12% to 20% by 2030. Nigeria’s ICT sector already contributed around 20% of real GDP in Q2 2024, and the country is implementing a National Digital Economy Policy and Strategy 2020-2030 to embed digital services across sectors, including commerce.
• Kenya launched a national e-commerce strategy in December 2023; the government highlights 96% 3G/4G coverage and online shopping adoption rising from 9% of internet users in 2017 to 16% in 2021 as foundations for scaling domestic platforms and cross-border trade.
• Economic diversification: Saudi Arabia, the UAE, and Nigeria are using digital trade to reduce dependence on hydrocarbons and other commodities and to expand non-oil tax bases. Youthful demographics and unemployment pressure: Policies emphasise digital skills, SME enablement and online entrepreneurship (e.g., Nigeria’s digital-skills partnerships with Microsoft and Google) to absorb large youth cohorts and formalise micro-businesses.
• Regional integration: Kenya’s strategy aligns with the East African Community e-commerce framework, enabling cross-border digital trade under the AfCFTA. Regulatory clarity on consumer protection, data, cross-border payments and tax will reduce risk premiums for international marketplaces entering or expanding in these markets. Incentive schemes (free zones in the UAE, startup funds in Nigeria and Kenya, SME programs like Saudi Monsha’at’s e-commerce services) will pull more local brands online, increasing assortment and local-language content.
• In practice, this means denser competition in categories like fashion, electronics and groceries, but on more formal rails - stronger KYC, traceable transactions and better logistics integration.

Social and conversational commerce reshape customer acquisition

• E-commerce in MEA is increasingly initiated and influenced inside chat and short-video apps rather than on traditional websites. In Nigeria, BusinessDay reports that 67% of online purchases begin with a chat, compared with a global average of 22%, and that there are over 51 million WhatsApp users, roughly one in four active mobile lines. Micro and small merchants use WhatsApp Status and broadcasts as de facto storefronts.
• In the Gulf, TikTok and Instagram drive discovery and direct sales. TikTok Shop has been rolled out in Saudi Arabia and the UAE, with further expansion planned to Egypt, Nigeria and Kenya. A 2024 academic study on social commerce in Saudi Arabia highlights the strong role of social networks and mobile usage in shaping purchase decisions and trust in seller recommendations. A recent economic impact study estimated that TikTok drove SAR 110 billion in consumer spending in Saudi Arabia in 2024 across sectors, including retail.
• Low setup costs and informality: For Nigerian MSMEs, WhatsApp allows selling without a full e-commerce tech stack or formal registration; payments, marketing and customer service all run through one app, which is critical given 39m+ MSMEs and limited access to formal finance. High social-media penetration and time spent online: Saudi Arabia has near-universal internet usage and very high social-media engagement, making social feeds a natural top-of-funnel for discovery and conversion.
• Platform tools: Features like TikTok Shop, Instagram Shopping, and third-party “shop on WhatsApp” integrations give merchants in Egypt, Nigeria and Kenya embedded catalogues, payments and logistics plugins without standalone sites.
• Social and conversational channels are likely to intensify as primary acquisition and conversion layers, especially for fashion, beauty, electronics accessories and long-tail categories. Regulators are beginning to notice informal online trade (e.g., Saudi authorities exploring capturing unregistered e-commerce in the VAT base), which suggests gradual formalisation and potential new compliance requirements for social sellers.
• Traditional marketplaces will respond by embedding chat and live-video features, partnering with influencers, and offering in-app BNPL and wallet options to keep transactions within their ecosystems.

Marketplace consolidation and logistics scale widen regional reach

• MEA e-commerce is dominated by a mix of regional champions and global entrants, who are now pushing deeper into townships, secondary cities and cross-border flows. Jumia reports 6 million customers across nine African countries (combined population ~600 million), and expects order volumes to grow up to 25% in 2025 while fending off competition from Temu and other Chinese platforms.
• In South Africa, online retail sales reached 71 billion rand in 2023, up 29% year-on-year, and are projected to approach 10% of total retail by 2026. Takealot’s market share dipped from 26.5% to 20.9% in 2023 as Amazon and Chinese fast-fashion players entered, prompting it to invest in more dark stores and to recruit 2,500 personal shoppers, targeting 5,000 by 2028 to reach townships and rural areas. In the Gulf, food and grocery platform Talabat serves over six million active customers and is set to list on the Dubai exchange in a deal expected to raise about $2 billion, underpinning further investment in logistics and on-demand delivery. Talabat and peers are expanding dark-store networks (Talabat Mart) for rapid grocery delivery in the UAE, Kuwait and Egypt.
• Scale economics in logistics: High last-mile costs and fragmented addressing in markets such as Nigeria and South Africa favour large players who can amortise investments in dark stores, automation (e.g., Takealot’s robotic sorting in Johannesburg) and township personal-shopper programs.
• Platform competition from global entrants: Amazon’s launch in South Africa and Temu/Shein’s expansion into both South Africa and Nigeria are squeezing margins, pushing local incumbents to deepen moats through faster delivery, broader assortments and integrated services (e.g., grocery, restaurant delivery, tickets). Capital-market access: IPOs like Talabat’s and continued investor appetite for African e-commerce (despite profitability concerns) provide capital to fund multi-country expansion and tech upgrades.
• Expect further consolidation: weaker local platforms and mono-category specialists are likely M&A targets or could be outcompeted as cross-border and marketplace giants deepen penetration.
• Townships, peri-urban areas, and smaller cities are the next growth frontier, driven by personal shopper and agent networks (Takealot, Jumia, M-Pesa agents) and by lighter-weight pickup and locker formats. Quick-commerce units (Talabat Mart, Noon’s rapid-delivery formats, Mr D in South Africa) will heighten expectations for sub-hour delivery for key categories in Gulf cities and major African metros, reshaping retail inventory and real estate planning.

Competitive Landscape

Current State of the Market

• E-commerce in MEA is shaped by a mix of highly formal GCC markets and rapidly digitising African economies, creating uneven but fast-changing competitive intensity. In the Gulf, online retail is anchored by widespread electronic payments and strong logistics networks. Saudi Arabia’s e-commerce transactions continue to expand on the Mada card network, while the UAE’s Digital Economy Strategy aims to raise the digital GDP share by 2030.
• In Africa, growth is influenced by mobile-money ecosystems such as Kenya’s M-Pesa and rising financial inclusion in Egypt and Nigeria. These divergent foundations create two competitive models: large, logistics-heavy regional players in the GCC, and mobile-first, low-infrastructure marketplaces across Africa.

Key Players and New Entrants

• MEA competition is led by Amazon (Saudi Arabia, UAE, Egypt), Noon (GCC), Talabat (GCC) for food and grocery, and Jumia across nine African countries. In South Africa, Takealot remains the dominant domestic player but faces pressure from Amazon’s 2024 market entry. Fast-growing cross-border platforms Temu and Shein are expanding into South Africa, Nigeria, and the Gulf, particularly in fashion and low-ticket general merchandise. In Egypt and Morocco, social-commerce-enabled SMEs remain significant competitors through WhatsApp and Instagram storefronts, serving long-tail categories.

Recent Launches, Mergers, and Acquisitions

• Recent competitive activity in MEA has been shaped primarily by market entries and ecosystem partnerships rather than large M&A. Amazon’s May 2024 launch in South Africa remains the most significant new entry, prompting Takealot to expand fulfilment capacity and deploy automation at its Johannesburg distribution centre. In the Gulf, platforms such as Noon have strengthened service integration through partnerships, including the 2024 collaboration with Urban Company for home services in the UAE and Saudi Arabia, and a logistics partnership with ADNOC Distribution to use fuel-station networks for rapid delivery. Across African markets, Jumia has focused on operational streamlining, optimising logistics, reducing cash burn, and improving category mix without major acquisitions or exits during the period.

This title is a bundled offering, combining the following 13 reports, covering 800+ tables and 1,200+ figures for the Ecommerce Market:

Report Scope

Middle East B2C Ecommerce Market Size and Growth Dynamics

• Gross Merchandise Value
• Gross Merchandise Volume
• Average Value per Transaction

Middle East Social Commerce Market Size and Growth Dynamics

• Gross Merchandise Value
• Gross Merchandise Volume
• Average Value per Transaction

Middle East Quick Commerce Market Size and Growth Dynamics

• Gross Merchandise Value
• Gross Merchandise Volume
• Average Value per Transaction

Middle East B2C Ecommerce Market Segmentation by Ecommerce Vertical

• Retail Shopping
• Travel & Hospitality
• Online Food Service
• Media & Entertainment
• Healthcare & Wellness
• Technology Products & Services
• Other

Middle East B2C Ecommerce Market Segmentation by Retail Shopping Category

• Clothing, Footwear & Accessories
• Health, Beauty & Personal Care
• Food & Beverage
• Appliances & Electronics
• Home Improvement
• Books, Music & Video
• Toys & Hobby
• Auto Parts & Accessories
• Other

Middle East B2C Ecommerce Market Segmentation by Retail Shopping Sales Channel

• Platform-to-Consumer
• Direct-to-Consumer
• Consumer-to-Consumer

Middle East B2C Ecommerce Market Segmentation by Travel & Hospitality Category

• Air Travel
• Train & Bus
• Taxi & Ride-Hailing
• Hotels & Resorts
• Other

Middle East B2C Ecommerce Market Segmentation by Travel and Hospitality Sales Channel

• Air Travel- Aggregator App
• Air Travel- Direct-to-Consumer
• Train & Bus- Aggregator App
• Train & Bus- Direct-to-Consumer
• Taxi & Ride-Hailing- Aggregator App
• Taxi & Ride-Hailing- Direct-to-Consumer
• Hotels & Resorts- Aggregator App
• Hotels & Resorts- Direct-to-Consumer
• Other- Aggregator App
• Other- Direct-to-Consumer

Middle East B2C Ecommerce Market Segmentation by Online Food Service Sales Channel

• Aggregator App
• Direct-to-Consumer

Middle East B2C Ecommerce Market Segmentation by Media & Entertainment Sales Channel

• Streaming Services
• Movies & Events
• Theme Parks & Gaming
• Other

Middle East B2C Ecommerce Market Segmentation by Engagement Model

• Website-Based
• Live Streaming

Middle East B2C Ecommerce Market Segmentation by Location

• Cross-Border
• Domestic

Middle East B2C Ecommerce Market Segmentation by Device

• Mobile
• Desktop

Middle East B2C Ecommerce Market Segmentation by Operating System

• iOS / macOS
• Android
• Other Operating Systems

Middle East B2C Ecommerce Market Segmentation by City Tier

• Tier 1
• Tier 2
• Tier 3

Middle East B2C Ecommerce Market Segmentation by Payment Instrument

• Credit Card
• Debit Card
• Bank Transfer
• Prepaid Card
• Digital & Mobile Wallet
• Other Digital Payment
• Cash

Middle East B2C Ecommerce Consumer Demographics & Behaviour

• Market Share by Age Group
• Market Share by Income Level
• Market Share by Gender

Middle East B2C Ecommerce User Statistics & Ratios

• Internet Users
• Ecommerce Users
• Social Media Users
• Smartphone Penetration
• Banked Population
• Ecommerce Per Capita
• GDP Per Capita
• Ecommerce as % of GDP
• Cart Abandonment Rate
• Product Retun Rate

Middle East B2C Ecommerce Operational Metrics by Ecommerce Segment

• Gross Merchandise Value by Segment

Middle East B2C Ecommerce Operational Metrics by Retail Shopping Category

• Gross Merchandise Value by Category

Middle East B2C Ecommerce Operational Metrics by Sales Channel

• Gross Merchandise Value by Channel

Middle East B2C Ecommerce Operational Metrics by Location

• Gross Merchandise Value by Location

Middle East B2C Ecommerce Operational Metrics by Device

• Gross Merchandise Value by Device

Middle East B2C Ecommerce Operational Metrics by Operating System

• Gross Merchandise Value by Operating System

Middle East B2C Ecommerce Operational Metrics by City Tier

• Gross Merchandise Value by City Tier

Middle East B2C Ecommerce Operational Metrics by Payment Instrument

• Gross Merchandise Value by Payment Instrument

Reasons to Buy

• Comprehensive Market Intelligence: Develop a complete understanding of the B2C ecommerce landscape in Middle East with fundamental ecommerce metrics such as gross merchandise value, gross merchandise volume, and average value per transaction across all major ecommerce segments.
• Granular Segmentation and Cross-Analysis: Analyse the online retail ecosystem through detailed segmentation covering ecommerce segments, retail product categories, travel and hospitality verticals, media and entertainment services, sales channels, devices, operating systems, cities, and payment instruments, enabling deep insight into evolving consumer shopping patterns.
• Operational and Performance Benchmarking: Benchmark marketplaces, direct-to-consumer platforms, aggregators, and category-focused players using KPIs such as GMV share, category-level performance, channel efficiency, device contribution, and payment mode penetration, supporting comparative assessment of platform strengths and competitive positioning.
• Consumer Behavior and Ecosystem Readiness: Understand how demographics, income groups, gender mix, device usage, and payment preferences shape online purchasing decisions, influencing category demand, cart abandonment behavior, product return tendencies, and the shift toward digital-first commerce.
• Data-Driven Forecasts and KPI Tracking: Access a structured dataset of 80+ ecommerce KPIs with historical and forecast values up to 2029, providing clarity on growth drivers, category expansion, sales-channel transitions, and payment-instrument evolution across the B2C ecommerce value chain.
• Decision-Ready Databook Format: Delivered in a standardized, analytics-friendly databook format aligned with financial modeling requirements, enabling ecommerce companies, consumer brands, payment providers, technology firms, and investors to conduct evidence-based market assessment and strategic planning.