A new report containing an overview of the B2C E-Commerce market size, forecasts, trends and competitors in the Middle East has been published by Germany-based secondary market research specialist yStats.com. The report, titled “Middle East B2C E-Commerce Market 2016”, reveals among other facts that the growth of online retail in the countries of this region is supported by advancing technology, as well as improving payment and regulatory environments.
The new report by yStats.com reveals that although the Middle East is the smallest of the global regions by count of Internet users, over the past years, its online audience has been one of the fastest growing. IT infrastructure is developing rapidly across the region, resulting in high Internet penetration rates of over 90% in countries such as Qatar, Bahrain and the UAE. As more consumers gain access to the Internet and begin to appreciate the convenience of online purchases, online shopper penetration rates across the region are also growing, with Israel boasting the highest rate of all.
As trust in buying online increases, customers in the Middle East turn to E-Commerce websites not only for online travel bookings, but also for physical product purchases. The research findings contained in the yStats.com report reveal that consumer electronics are especially gaining popularity among online shoppers in the Middle East. In countries such as Kuwait the average online transaction value is on a decrease as shoppers gain confidence in online shopping and make more, smaller-value purchases. On the other hand online shoppers in the Middle East remain cautious when it comes to paying for their purchases. As a result, the leading E-Commerce companies operating in this region, such as UAE-based Souq.com, have to cope with the need to offer cash on delivery.
While the United Arab Emirates and Saudi Arabia remain some of the largest markets in the Middle East in terms of online retail market size, other countries should not be overlooked, as yStats.com report indicates. For example, Jordan has launched multiple successful E-Commerce projects, such as online clothing retailer MarkaVIP. Qatar ranked among the top 5 emerging economies worldwide in B2C E-Commerce index; and governments in Oman and Bahrain undertake multiple initiatives to support online commerce development in their countries. Moreover, following the cancelation of sanctions, Iran has a high potential to come to the forefront of B2C E-Commerce in the region, with its large population, rising Internet connectivity and high levels of debit card ownership.