Global Compendium 2025: Volume 4 Middle East Digital Commerce & Payments in the Age of Al
Description
Mobile-First Retail, Digital Wallet Growth, and AI Investment Reshape Middle East Commerce in 2025
Middle East Accelerates Online Retail and Mobile-First Purchasing
Online shopping activity is rising steadily across the Middle East as mobile-led purchasing becomes the norm. In Saudi Arabia, more than half of Internet users shopped online weekly in 2023. Peak periods such as Ramadan further lift demand, with the UAE posting the highest average online order values in the region.
Digital Payments Gain Momentum as Wallets and Mobile Commerce Expand
Cashless payments continue to gain ground as digital wallets and mobile commerce expand. Digital wallets represented around one fifth of online spending in MENA in 2023. By 2025, mobile commerce is expected to account for the majority of online transaction value across the region.
AI Investment Deepens as Gulf Nations Drive Enterprise Adoption
AI adoption is advancing across retail, payments, and financial services, supported by national digital strategies. Enterprises are using Generative AI for content creation, risk management, and operational efficiency. Talent availability, governance, and infrastructure remain key factors influencing adoption speed.
Middle East Accelerates Online Retail and Mobile-First Purchasing
Online shopping activity is rising steadily across the Middle East as mobile-led purchasing becomes the norm. In Saudi Arabia, more than half of Internet users shopped online weekly in 2023. Peak periods such as Ramadan further lift demand, with the UAE posting the highest average online order values in the region.
Digital Payments Gain Momentum as Wallets and Mobile Commerce Expand
Cashless payments continue to gain ground as digital wallets and mobile commerce expand. Digital wallets represented around one fifth of online spending in MENA in 2023. By 2025, mobile commerce is expected to account for the majority of online transaction value across the region.
AI Investment Deepens as Gulf Nations Drive Enterprise Adoption
AI adoption is advancing across retail, payments, and financial services, supported by national digital strategies. Enterprises are using Generative AI for content creation, risk management, and operational efficiency. Talent availability, governance, and infrastructure remain key factors influencing adoption speed.
Table of Contents
148 Pages
- 1. Key Takeaways
- 2. Management Summary
- 3. Middle East: B2C E-Commerce & Payments Overview
- 3.1. Middle East Market Size and Regional Growth Trends
- MENA: B2C E-Commerce Market Overview and Trends, March 2024
- MENA: B2C E-Commerce Market Size, in USD billion, 2021, 2022 & 2026f
- MENA: Increase in Order Value During Ramadan, by Country, in USD, April 2024
- MENA: Increase in Online Purchases During Ramadan, by Product Category, in %, Q1 2024
- KSA & UAE: Share of Respondents Who Shop Online During Ramadan, in %, 2023e
- KSA & UAE: Share of Respondents Who Shop Online Weekly or Daily During Ramadan, in %, 2023e
- KSA & UAE: Share of Respondents Who Plan to Shop Online More Frequently During Ramadan, in %, 2023e
- KSA & UAE: Share of Respondents Who Plan to Shop Less Frequently in Person During Ramadan, in %, 2023e
- 3.2. Middle East Leading E-Commerce Markets
- 3.2.1. Saudi Arabia
- Saudi Arabia: B2C E-Commerce Market Overview and Trends, March 2024
- Saudi Arabia: B2C E-Commerce Share of Total Retail Sales, in %, 2023 & 2035f
- Saudi Arabia: B2C E-Commerce Share of Total Commerce, in %, 2022
- Saudi Arabia: Millennials’ Spending Share of Total B2C E-Commerce Sales, in %, 2023 & 2035f
- Saudi Arabia: Share of Adults Who Made a Purchase Using a Mobile Phone or the Internet, in %, 2022
- Saudi Arabia: Weekly B2C E-Commerce Activities, in % of Internet Users, Q3 2023
- Saudi Arabia: Top 5 Online Shopping Drivers, in % of Internet Users, Q3 2023
- Saudi Arabia: Top B2C E-Commerce Websites, by Visits in Millions, Bounce Rate in %, and Pages Per Visit, February 2024 (1 of 2)
- Saudi Arabia: Top B2C E-Commerce Websites, by Visits in Millions, Bounce Rate in %, and Pages Per Visit, February 2024 (2 of 2)
- Saudi Arabia: Top 10 Free Mobile Shopping Apps in the Apple App Store and Google Play Store, by Rank, March 2024
- 3.2.2. United Arab Emirates
- UAE: B2C E-Commerce Revenue, in USD billion, 2024e & 2028f
- UAE: B2C E-Commerce Market Size, in USD billion, 2019-2026f
- UAE: Mobile Commerce Market Size, in USD billion, 2019-2026f
- UAE: B2C E-Commerce Share of Total Retail Sales, in %, 2026f
- UAE: Share of Adults Who Made a Purchase Using a Mobile Phone or the Internet, in %, 2022
- UAE: Weekly B2C E-Commerce Activities, in % of Internet Users, Q3 2023
- UAE: Top 5 Online Shopping Drivers, in % of Internet Users, Q3 2023
- UAE: Top B2C E-Commerce Websites, by Visits in Millions, Bounce Rate in %, and Pages Per Visit, February 2024 (1 of 2)
- UAE: Top B2C E-Commerce Websites, by Visits in Millions, Bounce Rate in %, and Pages Per Visit, February 2024 (2 of 2)
- UAE: Top 10 Free Mobile Shopping Apps in the Apple App Store and Google Play Store, by Rank, March 2024
- 3.2.3. Israel
- Israel: B2C E-Commerce Revenue, in USD billion, 2023e & 2027f
- Israel: Fashion B2C E-Commerce Revenue, in USD billion, 2023e & 2027f
- Israel: Share of Adults Who Made a Purchase Using a Mobile Phone or the Internet, in %, 2022
- Israel: Weekly B2C E-Commerce Activities, in % of Internet Users, Q3 2023
- Israel: Top 5 Online Shopping Drivers, in % of Internet Users, Q3 2023
- Israel: Top B2C E-Commerce Websites, by Visits in Millions, Bounce Rate in %, and Pages Per Visit, February 2024 (1 of 2)
- Israel: Top B2C E-Commerce Websites, by Visits in Millions, Bounce Rate in %, and Pages Per Visit, February 2024 (2 of 2)
- Israel: Top 10 Free Mobile Shopping Apps in the Apple App Store and Google Play Store, by Rank, March 2024
- 3.3. Emerging Markets Across the Middle East
- 3.3.1. Iran
- Iran: B2C E-Commerce Value, in USD billion, March 2023 & September 2023, and Market Metrics, November 2023
- Iran: Share of Adults Who Made a Purchase Using a Mobile Phone or the Internet, in %, 2022
- Iran: Share of Social Media Apps Making Up Total B2C E-Commerce Deals, in %, 2023*
- 3.3.2. Qatar
- Qatar: B2C E-Commerce Market Size, in USD billion, 2023e & 2027f
- Qatar: Share of Adults That Shop Online, in %, 2023e & 2027f
- Qatar: Top 10 Free Mobile Shopping Apps in the Apple App Store and Google Play Store, by Rank, March 2024
- 3.3.3. Kuwait
- Kuwait: B2C E-Commerce Market Size, in USD billion, 2023e & 2027f, And Market Metrics, April 2023
- Kuwait: Share of Adults Who Made a Purchase Using a Mobile Phone or the Internet, in %, 2022
- Kuwait: Share of Internet Users Who Are Aware of B2C E-Commerce Platforms, in %, 2023e
- Kuwait: Top 10 Free Mobile Shopping Apps in the Google Play Store, by Rank, March 2024
- 3.3.4. Jordan
- Jordan: Share of Adults Who Made a Purchase Using a Mobile Phone or the Internet, in %, 2022
- Jordan: Top 10 Free Mobile Shopping Apps in the Apple App Store and Google Play Store, by Rank, March 2024
- 3.3.5. Bahrain
- Bahrain: Share of Adults Who Made a Purchase Using a Mobile Phone or the Internet, in %, 2022
- Bahrain: Top 10 Free Mobile Shopping Apps in the Apple App Store and Google Play Store, by Rank, March 2024
- 3.3.6. Oman
- Oman: B2C E-Commerce Market Size, in USD billion, June 2023e & 2028f
- Oman: Top 10 Free Mobile Shopping Apps in the Apple App Store and Google Play Store, by Rank, March 2024
- 3.4. Middle East Digital Payments & Economy Infrastructure
- MEA: Total Non-cash Transactions Volume, in volume billions, 2018 & 2021-2024e & 2028f
- MEA: Total B2B Non-cash Transactions Volume, in volume billions, 2018 & 2021-2024e & 2028f
- MEA: Payment Mix: New Payments vs Traditional Payments, In % of transaction volume, 2023
- Middle East: Digital Payment Market Overview, April 2024
- MENA: Digital Economy Value, in USD billion, 2022 & 2030f
- MENA: Share of Mobile Commerce Making Up Total Online Transaction Value, in %, 2025f
- MENA: Share of Digital Wallets Making Up Total Online Spending, in %, 2023e
- Saudi Arabia: Share of Adults That Made a Digital Payment, in %, 2022
- Saudi Arabia: Breakdown of B2C E-Commerce Payment Methods, in %, 2022
- UAE: Share of Adults That Made a Digital Payment, in %, 2022
- UAE: Annual Volume Increase of Digital Payments During Ramadan, by Product Category, in % of Year-On-Year Change, April 2023
- Israel: Share of Adults That Made a Digital Payment, in %, 2022
- Iran: Share of Adults That Made a Digital Payment, in %, 2022
- Kuwait: Share of Adults That Made a Digital Payment, in %, 2022
- Jordan: Share of Adults That Made a Digital Payment, in %, 2022
- Bahrain: Share of Adults That Made a Digital Payment, in %, 2022
- 4. Middle East: AI & Automation in Commerce
- 4.1. AI Adoption & Seller Readiness in the Middle East
- Middle East: Organizational AI Adoption Speeds, in % of Respondents, Oct–Dec 2024
- Middle East: AI Implementation Levels by Business Function, in % of Respondents, Oct–Dec 2024
- GCC & Middle East: Companies’ GenAI Adoption, in % of Respondents, October-November 2024
- GCC: GenAI Adoption by Business Function, in % of Respondents, May 2024
- GCC: AI Strategies, Infrastructure Development, and Capability Gaps by Maturity Segment, July 2025
- GCC: Country-Level AI Progress in Investment, Infrastructure, and Capability Building, July 2025
- Saudi Arabia: GenAI Readiness, Infrastructure Scale-Up, and Sector-Specific Application Rollout, July 2025
- UAE: AI Integration Across Aviation, Retail, Financial Services, Logistics, and Telecommunications, July 2025
- UAE: AI-Driven Operational Scaling, Analytics Deployment, and Capability Development, July 2025
- UAE: AI Talent Development via Youth Initiatives, Workforce Reskilling, and Institutional Support, July 2025
- UAE: Strategic Partnerships, Scalable Infrastructure, and Innovation in National AI Landscape, July 2025
- UAE: Centennial 2071 Vision, Interagency AI Execution, and Adaptive Digital Regulation, July 2025
- Qatar: AI Market Value, in QAR billions, 2024e & 2030f
- Qatar: AI Investments, Localized Language Tools, Urban Tech Initiatives, and SME Support, July 2025
- 4.2. Impact, Investment, And Business Value in the Middle East
- GCC & Mid. East: Expectations for Profit Impact of GenAI, in % of Resp. Anticipating Net Increase, Oct-Nov 2024
- GCC & Mid. East: Net Increase from GenAI Adop. Across Five Business Metrics, in % of Resp., Oct-Dec 2024
- MENA: AI-Driven IT Spending Growth, in USD billions, 2024 & 2025f
- META: AI Spending and Growth Outlook, in USD Billions, 2024 & 2028f
- MENA: Projected GDP Share from AI vs. Other Sources, in % of Total GDP, 2030e
- Middle East: AI Value Measurement Practices by Country, in % of Respondents, Oct–Dec 2024
- Middle East: Data Capability Enhancements for AI, in % of Respondents, Oct–Dec 2024
- GCC: GenAI Economic Impact, Top Use Cases, Strategic Enablers, and Deployment Barriers, July 2025
- Saudi Arabia & UAE: AI Investment Priorities by Value Chain Segment, in % of Respondents, Aug 2024
- Saudi Arabia & UAE: Current & Future Gen AI Investment Plans by Business Function, in % of Org., Aug. 2024
- Saudi Arabia & UAE: Gen AI Investment Allocation, in % of Organizations, August 2024
- Saudi Arabia & UAE: Most Strategic GenAI Technology Partners by Type, in % of Respondents, Aug 2024
- 4.3. Use Cases and Operational Applications in the Middle East
- Middle East: Top AI Applications in Daily Operational Use, in % of Respondents, Oct–Dec 2024
- MENA: AI-Driven Personalization, Risk Management, and National Investment in Financial Services, July 2025
- MENA: AI-Driven Personalization, Risk, Fraud Detection, and Compliance in Financial Services, July 2025
- Middle East: GenAI in Fraud Detection, Risk, Customer Engagement, and Financial Automation, July 2025
- Middle East: GenAI Automation, Service Gains, and Talent Gaps in Financial Sector Strategy, July 2025
- Saudi Arabia: Leading GenAI Use Cases by Application Type, in % of Respondents, Oct-Dec 2024
- UAE: Leading GenAI Use Cases by Application Type, in % of Respondents, Oct-Dec 2024
- Qatar: Leading GenAI Use Cases by Application Type, in % of Respondents, Oct-Dec 2024
- 4.4. Barriers, Risks, and Governance in the Middle East
- Middle East: Barriers to AI Development and Deployment, in % of Respondents, Oct-Dec 2024
- Middle East: Challenges in Attracting AI Talent by Country, in % of Respondents, Oct-Dec 2024
- Middle East: Linguistic Barriers, Cloud Gaps, Talent Cost Pressures, and Regulatory Challenges, July 2025
- Middle East: Budget Overruns, Financial Planning Deficits, and AI Project Termination Risks, July 2025
- GCC: Top Risks of Generative AI Adoption, in % of Respondents, Aug–Sep 2024
- Middle East: AI-Related Operational Threat Levels by Country, in % of Respondents, Oct–Dec 2024
- Middle East: AI-Powered Financial Threat Detection, TPRM Pilots, and Infrastructure Security, July 2025
- Middle East: AI Risk Management Measures, in % of Respondents, Oct–Dec 2024
- Middle East: AI Preparedness Levels by Organizational Areas, in % of Respondents, Oct–Dec 2024
- MENA: AI Regulation in Finance via Ethics Principles, Data Laws, and Innovation Sandboxes, July 2025
- Saudi Arabia & UAE: Data-Related Barriers Slowing AI Adoption in Finance, in % of Org., August 2024
- Saudi Arabia & UAE: Data-Related Barriers Slowing AI Adoption in Retail & Wholesale, in % of Org., Aug. 2024
- Saudi Arabia & UAE: Data-Related Barriers Slowing AI Adoption in Hospitality & Accommodation, in % of Org., August 2024
- Saudi Arabia & UAE: Data-Related Barriers Slowing AI Adoption in Media, Entertainment & Gaming, in % of Org., August 2024
- Saudi Arabia & UAE: Data-Related Barriers Slowing AI Adoption in Government, in % of Org., August 2024
- Saudi Arabia & UAE: Barriers to Accelerating GenAI Adoption, in % of Organizations, August 2024
- Saudi Arabia & UAE: Availability Status of Responsible AI Policies, in % of Respondents, August 2024
- Saudi Arabia & UAE: Awareness of Key Government-Led AI Initiatives, in % of Respondents, Aug 2024
- Saudi Arabia: GenAI Risks in Data, Labor, Society, Sovereignty, and AI Integrity, July 2025
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