Imagine strolling through the bustling cities of the Middle East, where consumers no longer merely pass by physical stores but can shop global products with a simple tap on their screens. This vision has become reality, as a new report from global payment service provider Checkout reveals the Middle East and North Africa (MENA) region has entered a golden era of stable, high-speed e-commerce growth.
Pandemic Accelerates Digital Shopping Revolution
The COVID-19 pandemic served as a powerful catalyst for e-commerce expansion. According to the report, the MENA region's online shopping growth over the past three years has significantly outpaced other global markets, with approximately 209 million consumers embracing digital commerce. Remarkably, even after lockdowns lifted, this enthusiasm for online shopping continues to intensify.
The comprehensive study surveyed over 15,500 shoppers across MENA, revealing that 91% of respondents regularly shop online—a notable increase from 87% in 2021. More than half of residents report shopping online more frequently this year, up from 47% in 2021, signaling a profound transformation in consumer behavior.
GCC Nations Lead With Daily Digital Shopping
Gulf Cooperation Council (GCC) countries emerge as frontrunners in this digital commerce revolution. The report shows 91% of GCC respondents make at least one online purchase daily—a 50% surge compared to the previous 12 months. This establishes online shopping as an ingrained lifestyle habit rather than occasional behavior.
The upward trajectory shows no signs of slowing, with 88% of MENA consumers planning to increase online spending in the coming year, indicating substantial untapped market potential.
Spending Shifts: Travel Rebounds While Convenience Foods Remain Essential
As regional economies flourish and pandemic restrictions fade, consumers are redirecting spending toward travel, entertainment, and experiences. However, prepared meals maintain strong demand, with 45% of shoppers prioritizing them as their top online purchase category.
Digital Payments Surge as Cash-on-Delivery Fades
The payment landscape has undergone dramatic transformation, with 70% of MENA consumers now preferring digital payments—a 75% increase from 2020 levels. In tech-savvy GCC markets, this preference jumps to 80% .
Financial technology adoption has soared, with 82% of MENA consumers using fintech apps in 2022. Digital wallet usage as a primary payment method grew 6% over two years, with adoption nearly doubling in Egypt, Qatar, and Saudi Arabia. Meanwhile, cash-on-delivery transactions plummeted by 40% during the same period.
Innovative Models Gain Traction: BNPL and Social Commerce
Buy-Now-Pay-Later (BNPL) services have achieved remarkable penetration, used by nearly half of consumers in UAE and Saudi Arabia. Across MENA, 39% utilized BNPL in 2022—a 64% year-over-year increase —with an additional 28% expressing interest in trying the service. This suggests potential adoption by 67% of regional consumers in 2023.
Social commerce has similarly flourished, with 20% of MENA shoppers regularly purchasing through social platforms—a 43% increase over two years. Demand has more than doubled in Saudi Arabia and UAE.
Competitive Landscape Intensifies
As digital payment adoption accelerates and consumer expectations rise, businesses face both unprecedented opportunities and heightened competition. Success will require continuous innovation in product offerings, payment solutions, and customer experience to stand out in this rapidly evolving marketplace.