The digital economy in the Middle East and North Africa (MENA) region is on a meteoric rise, reshaping how consumers shop and pay. The transformation is evident, driven by a surge in online shopping and a significant shift towards digital payments. Here's an in-depth look at the latest trends and insights from the region. Booming Digital Commerce
The MENA region has experienced an astonishing 80% increase in daily online shoppers since 2020. Saudi Arabia, in particular, has seen a remarkable 90% growth, boasting 2.6 million daily online shoppers. This growth is a testament to the region's increasing digital engagement and its consumers' evolving preferences.
Changing Consumer Behavior
Consumer behavior in MENA is rapidly shifting towards online shopping. Currently, 56% of MENA consumers shop online weekly. Saudi Arabia has seen a 180% increase in weekly online shoppers since 2020. Notably, high-income households are particularly optimistic about increasing their online spending in 2024, signaling robust growth prospects.
From Cash to Digital Payments
One of the most significant changes is the decline in cash on delivery. The preference for this payment method has halved from 41% in 2020 to just 20% in 2023. Digital wallets, including Apple Pay and Google Pay, are gaining substantial traction, making transactions smoother and more secure.
Diverse Online Shopping Categories
MENA consumers are expanding their online shopping horizons. There's notable growth in categories like travel, events, home furnishings, electronics, beauty, and luxury goods. This diversification highlights the region's readiness to embrace a broad spectrum of digital commerce.
The Appeal of Cross-Border Shopping
Cross-border shopping is becoming increasingly popular, with 41% of Qatari and 40% of Kuwaiti consumers citing it as a significant incentive. This trend underscores the region's global connectivity and the consumers' desire for diverse products and services.
