Tradeling, a MENA-based business-to-business (B2B) marketplace, cites that global e-commerce retail sales are expected to reach nearly $7 trillion by 2024. The global forecasted growth rate for 2023 is 8.9%, bringing e-commerce sales worldwide to $5.9 trillion in 2023 to reflect a 1.8% increase from last year.
The MENA region, which saw its market size reach $37 billion in 2022, is contributing to the projected growth of the overall sector. The region’s e-commerce market size is estimated to reach $57 billion in 2026.
Multiple factors have contributed to this forecast including the conclusion of the COVID-19 pandemic, the region’s strong economic stability, modern infrastructural development, innovative technological advancement, and several government-led initiatives.
Read more: UAE’s e-commerce sector set to contribute majorly to MENA’s digital economy
Prior to the COVID-19 pandemic, MENA’s e-commerce sector was expected to reach $20 billion in value. However, the onset of a lockdown with heavy reliance on online shopping saw 91% of consumers in the region become digital converts. This more than doubled previous expectations to elevate MENA’s e-commerce value to $55 billion in 2020. The 2024 expected rate of the global e-commerce industry is $6.07 trillion, which is in line to reach an estimated projection of $7 trillion globally by 2026. As it relates to the UAE, the country has been cited as the world’s fastest-growing e-commerce market not only in MENA but across the globe.
Marius Ciavola, CEO of Tradeling commented: “The unfortunate circumstances of the pandemic saw international interest in e-commerce exponentially increase. The MENA region has become a major contributor to this upward trajectory, and the UAE has stood at the forefront to spur this momentum.”
For more on e-commerce, click here.
