Mubasher: The UAE and Saudi Arabia have topped the e-commerce growth in the Middle East, both accounting for 75% of the total e-commerce sales in 2020, according to EZDubai’s ‘E-Commerce Sector in the UAE 2020 insights’ report.

The two GCC markets registered high purchasing power, expanded usage of social media, and smartphone penetration rates compared to other countries in the region.

The report showed that store-based retailing is expected to grow by a compound annual growth rate (CAGR) of 1% during the 2019-2024 period, while e-commerce will likely grow by a CAGR of 19% during the same period.

Online penetration in the Middle East meanwhile is expected to double to 6% by 2024, compared to 3% in 2019. It has increased to 5% in 2020 across the region.

General Manager of Euromonitor International in Dubai, Hussein Doughan, said: “Euromonitor International projects that half of the absolute value growth for the global retail sector over the 2020-2025 period will be digital. That equates to $1.4 trillion in absolute value growth as more goods are sold online.''

Doughan elaborated: “that would be roughly the size of the total value of products sold across all retail channels just five years ago.”

A recent report on the EY Future Consumer Index showed that nearly 63% of MENA consumers would purchase from companies that ensure their products and services have a positive impact on society, while 48% would buy more from organisations benefiting the society even if what they offer is more expensive.