DUBAI, (Pakistan Point News - 16th Jan, 2019) The middle East, North Africa and South Asia, MENASA, region's e-commerce sector is growing aggressively at 24.6 percent CAGR through to 2020, according to a newly launched report by Dubai CommerCity.
The report, 'MENASA e-commerce landscape', assists global companies and start-ups in evaluating the opportunities within the regional e-commerce market and highlights the high growth in the MENASA region.
It estimates that there was US$51 billion of e-commerce sales across MENASA in 2017. While this accounts for only three percent of the global e-commerce sales, the regions e-commerce sector is growing aggressively at 24.6 percent CAGR growth through to 2020. This is faster than any region in the world, as the global projected growth during the same period is at 20.6 percent with a declining growth trajectory.
These growth rates, the report explained, has been led by consumer trends and the development of infrastructure, both in terms of modern technology such as Artificial Intelligence, AI, the Internet of Things (IoT), and e-payment, as well as services, logistics, and shipping.
According to the report, South Asia represents the biggest market in size, while the GCC represents the fastest growing and highest spending market in the region. India stands out as the biggest, most mature e-commerce market with $39 billion in estimated e-commerce sales in 2017. The UAE represents the biggest spending per online shoppers at $1,648 with the third highest growth projected through 2020 at 29.6 percent.
The report has identified seven key growth drivers that include huge latent demand; high internet/ mobile adoption; a young/ internet savvy population; high social media usage; cross-border e-commerce; entrepreneurship, and growing government support.
Overall retail sales (offline and online) across MENASA represent 12 percent of overall global retail sales, while e-commerce penetration within global activity is only three percent. This represents a big opportunity for the region to step up to reach e-commerce activity at global levels. This opportunity is further reflected by the fact that in 2017, an estimated 16 percent of MENASA internet users, approximately 115 million people, were online shoppers. This is a big gap compared to 40 percent of global internet users who are e-shoppers, despite the fact that mobile internet usage in parts of the region is amongst the highest in the world (96 percent in UAE, 88 percent Saudi Arabia).
The report, which can be downloaded online through DAFZA’s website, represents a road map for international companies, entrepreneurs, and investors and show expectations around future growth levels in light of the initiatives and projects launched. The report reflects investment opportunities and prospects, emphasising Dubai’s role as a regional centre for e-commerce.
