Shipping to Middle East, Which countries are the most promising for e-commerce expansion? In the global e-commerce landscape, the Middle East is emerging as a highly promising new market with unique advantages. Among the many countries in the region, Saudi, the UAE, and Qatar stand out as top choices for e-commerce expansion.
Saudi can be considered the "top potential market" for e-commerce in the Middle East. As one of the largest e-commerce markets in the region, its e-commerce revenue reached $11.98 billion in 2023 and is projected to exceed $21 billion by 2025. The country has a young demographic, with over 60% of the population under the age of 35, fueling strong consumer activity. Additionally, women account for a significant portion of online shopping, with 74.6% of female consumers actively purchasing fashion and electronics products online. However, about 80% of local consumers prefer cash-on-delivery payments. While this payment method carries a certain risk of repudiation, with rates between 30%-40%, it also presents an opportunity for e-commerce operators to adapt to local consumption habits.
The UAE has become a hub for e-commerce development, driven by its digital infrastructure and policy initiatives. The country's e-commerce revenue is growing at a compound annual growth rate (CAGR) of 19.3%. Dubai's "2021 Plan" actively promotes the development of smart cities, attracting major e-commerce platforms such as Amazon and Noon to establish large-scale warehousing centers there, significantly reducing logistics delivery times to 3-5 days. Furthermore, Dubai's GuangShen E-commerce Market has introduced mature logistics practices from China, creating an "e-commerce metaverse" model that further integrates online and offline transactions. With an internet penetration rate of 99% and a smartphone penetration rate of 96%, over 71% of e-commerce payments in the UAE are made via bank cards and e-wallets, re flecting a high level of consumer acceptance toward online shopping and providing a solid foundation for e-commerce growth.
Qatar represents a premium e-commerce market driven by its high-net-worth population. In 2023, Qatar's e-commerce revenue was $3.44 billion and is expected to rise to $6.18 billion by 2025. The country boasts a per capita GDP of over $130,000, with consumers showing a clear preference for high-end fashion and electronics, resulting in an average order value exceeding $120. For businesses looking to enter the high-end e-commerce market, Qatar undoubtedly offers abundant opportunities.
These three countries in the Middle East demonstrate significant potential for e-commerce development, whether in terms of market size, consumer purchasing power, policy support, or digital infrastructure, making them key targets for e-commerce players seeking to expand their presence.