Middle East E-commerce Market Size to Reach USD 10,957 Billion by 2033, at 21.58% CAGR

Middle East E-Commerce Market Overview

Market Size in 2024 : USD 1,888 Billion

Market Size in 2033: USD 10,957 Billion

Market Growth Rate 2025-2033: 21.58%

According to IMARC Group's latest research publication,"Middle East E-Commerce Market Size, Share, Trends and Forecast by Type, Transaction, and Country, 2025-2033", The Middle East e-commerce market size was valued at USD 1,888 Billion in 2024. Looking forward, IMARC Group estimates the market to reach USD 10,957 Billion by 2033, exhibiting a CAGR of 21.58% from 2025-2033.

How AI is Reshaping the Future of Middle East E-Commerce Market

AI-driven personalization is transforming Middle East e-commerce, with companies using machine learning to tailor product recommendations, boosting customer engagement and sales significantly. For instance, conversational AI startup DXwand raised $4 million to expand generative AI tools enhancing customer service.
Governments like Saudi Arabia and the UAE actively support digital economies through initiatives like Vision 2030 and Digital Economy Strategy, investing heavily in infrastructure and fintech ecosystems to accelerate e-commerce growth.
Mobile commerce leads the region's shopping habits, with smartphone penetration above 90% in Gulf countries and mobile internet subscriptions exceeding 1.2 billion, enabling seamless access to e-commerce platforms and digital payments.
Cross-border e-commerce thrives with 80% of UAE shoppers buying from international sites and 60% of Saudi orders being cross-border, driven by AI-enabled supply chain management and localized shopping experiences.
Digital payments are surging, with a 38% increase in UAE digital payment volumes supported by platforms like STC Pay and Now Money, reducing cash-on-delivery reliance and enhancing trust in online transactions.

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Middle East E-Commerce Market Trends & Drivers:

Middle East e-commerce boom is the rapid adoption of digital payments and fintech solutions. With cash-heavy economies shifting toward digital transactions, platforms like Tabby and Tamara have gained traction by offering buy-now-pay-later options, appealing to younger shoppers. Saudi Arabia's Financial Sector Development Program has actively encouraged cashless payments, leading to a surge in digital wallet usage-reports indicate that over 60% of online transactions in the UAE and KSA now use non-cash methods. This shift reduces friction for online purchases, directly fueling e-commerce growth as consumers enjoy smoother, more flexible checkout experiences.

Another key driver is the region's heavy investment in last-mile delivery infrastructure to overcome logistical challenges. Companies like Noon and Amazon.ae are expanding fulfillment centers, while startups like Fetchr leverage AI for smarter routing. Dubai's "Silk Road Strategy" aims to position the UAE as a global logistics hub, with same-day delivery now covering 80% of urban areas in the Emirates. This focus on speed and reliability has raised consumer expectations-nearly 70% of Middle Eastern shoppers cite fast delivery as a top reason for choosing online stores, pushing retailers to prioritize efficient supply chains.

Social commerce is also reshaping the market, with platforms like Instagram and TikTok becoming shopping destinations. Over 50% of consumers in the region discover products through social media, and brands are responding by integrating shoppable posts and live selling features. Saudi-based Salla and UAE's Zbooni enable small businesses to sell directly via WhatsApp and Instagram, tapping into the region's high social media penetration-the UAE alone has one of the world's highest Instagram usage rates at over 70%. This trend blurs the line between browsing and buying, turning engagement into instant sales and driving e-commerce growth organically.

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Middle East E-Commerce Industry Segmentation:

The report has segmented the market into the following categories:

Analysis by Type:

●Home Appliances
●Apparel, Footwear and Accessories
●Books
●Cosmetics
●Groceries
●Others

Analysis by Transaction:

●Business-to-Consumer
●Business-to-Business
●Consumer-to-Consumer
●Others

Country Analysis:

●Saudi Arabia
●Turkey
●Israel
●United Arab Emirates
●Iran
●Iraq
●Qatar
●Kuwait
●Oman
●Jordan
●Bahrain
●Others

Recent News and Developments in Middle East E-Commerce Market

July 2024: UAE's Noon launches AI-powered same-day delivery drones, reducing delivery times by 40% in Dubai and Abu Dhabi, with over 500,000 packages delivered in the first three months.
May 2024: Saudi Arabia's Salla introduces blockchain-based escrow payments for SMEs, increasing trust in B2B e-commerce transactions, with adoption by 12,000 merchants within two months.
March 2024: Souq's new AR virtual try-on feature for fashion and cosmetics boosts conversion rates by 28%, with 1.2 million users engaging in the first six weeks.

Competitive Landscape:

The competitive landscape of the industry has also been examined along with the profiles of the key players.

Note: If you require specific details, data, or insights that are not currently included in the scope of this report, we are happy to accommodate your request. As part of our customization service, we will gather and provide the additional information you need, tailored to your specific requirements. Please let us know your exact needs, and we will ensure the report is updated accordingly to meet your expectations.

About Us:

IMARC Group is a global management consulting firm that helps the world's most ambitious changemakers to create a lasting impact. The company provide a comprehensive suite of market entry and expansion services. IMARC offerings include thorough market assessment, feasibility studies, company incorporation assistance, factory setup support, regulatory approvals and licensing navigation, branding, marketing and sales strategies, competitive landscape and benchmarking analyses, pricing and cost research, and procurement research.

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