$51 billion of e-commerce sales across MENASA in 2017
Dubai CommerCity, the joint project between the Dubai Airport Freezone Authority (DAFZA) and wasl Asset Management Group, has announced the launch of the ‘MENASA e-Commerce Landscape Report (B2C Products Edition)‘.
The report assists global companies and startups in evaluating the opportunities within the regional e-commerce market and highlights the high growth in the MENASA (Middle East North Africa and South Asia) region.
The report, offering a regional view on 22 countries, will be issued annually in Arabic and English and provide a comprehensive and global overview of the e-commerce sector alongside the role of technology and how it will shape this sector over the next 20 years.
The report can be downloaded online through DAFZA’s website.
The current report estimates that there was $51 billion of e-commerce sales across MENASA in 2017.
While this accounts for only 3% of the global e-commerce sales, the regions e-commerce sector is growing aggressively at 24.6% 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% with a declining growth trajectory.
According to the report, South Asia represents the biggest market in size, 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%.
Overall retail sales (offline and online) across MENASA represent 12% of overall global retail sales, while e-commerce penetration within global activity is only 3%.
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% of MENASA internet users, approximately 115 million people, were online shoppers.
This is a big gap compared to 40% of global internet users who are e-shoppers. This is despite the fact that mobile internet usage in parts of the region is amongst the highest in the world (96% in UAE, 88% Saudi Arabia).
The e-commerce sector in the Middle East, North Africa, and South Asia is witnessing considerable growth. This has been led by consumer trends and the development of infrastructure, both in terms of modern technology such as AI, the Internet of things (IoT), and e-payment, and in terms of services, logistics, and shipping.
The report also presents a first ever listing of Top 100 B2C e-commerce companies of MENASA region. Out of the top 100 list, 76 companies are based in MENASA region which is a very healthy sign of local e-commerce development.
Turkey has the most e-commerce companies on the list with 24 companies represented, followed by US 14, India 12 and UAE 11.
The UAE companies include Souq, Awok, Sharaf DG, Noon, Namshi, Maxfashion, Lulu Webstore, Centre Point, Jumbo, VIP brands and Our Shopee.
In order to meet the expected growth within the e-commerce sector in the region, Dubai CommerCity is being developed in Dubai’s Umm Ramool area, which represents 2.1-million square feet at a cost of AED 2.7 billion.
DAFZA had recently announced increasing the investment value in Dubai CommerCity by 18.5%, to around AED 3.2 billion, as it is based on a unique operating system combined with the attractive investment benefits provided within the free zone.
The high-tech logistical features suit the needs of e-commerce companies and enhance their operating experience, namely in terms of its excellent infrastructure, proximity to Dubai International Airport and main UAE roads, making it easily accessible by land, air and sea ports.
Dubai CommerCity is divided into three modern and innovatively-designed clusters: the Business Cluster, the Logistic Cluster (consisting of 84 logistic units) and Social Cluster.