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Middle East B2C E-Commerce Market 2015

Middle East B2C E-Commerce Market 2015

Online Retail Growth Expected in Middle East Markets

The UAE has led the growth of B2C E-Commerce in the Middle East in the past several years by several measures. Apart from being the largest online market in terms of sales, it also has the best infrastructure for B2C E-Commerce, with the highest mobile, smartphone, Internet and payment card penetration. With more consumers shopping online every year, the share of B2C E-Commerce on total retail sales of goods in the UAE is forecasted to triple between 2014 and 2019.

Saudi Arabia is the second largest B2C E-Commerce market in the region. M-Commerce has an especially high potential there, with more than two-thirds of online shoppers making their latest online purchase via smartphones according to a survey done last year.

Israel is another promising market. Price is an important factor in B2C E-Commerce in Israel, both in terms of attracting online shoppers and in competition among the merchants. With both Internet and online shopper penetration growing, Israel shows high potential for online retail growth.

In Qatar, the country with the third highest per capita GDP worldwide, less than 20% of Internet users made purchases online, despite the fact that the majority of residents already have Internet access. Consumer surveys indicate that better prices than in in-store retail could motivate consumers to shop online more.

Among other Middle Eastern countries, Bahrain stood out as the fastest growing B2C E-Commerce market. In Iran, the environment of online retail development has been improving over the recent years, with a number of E-Commerce start-ups emerging. Meanwhile, in Oman and Jordan, Internet penetration grew rapidly, but only a small percentage of Internet users have grasped the benefits of online shopping.

UAE-based online merchant Souq is one of the most prominent players on the B2C E-Commerce market in the Middle East. Souq is the unbeaten leader in its home country and has received over a hundred million USD of investment. International players, such as Amazon.com, eBay and Aliexpress are also among the most popular destinations for online shopping across the markets in the region.


1. Management Summary
2. Regional
Breakdown of B2C E-Commerce Sales, by Regions, incl. Middle East and Africa, in %, 2013 & 2018f
Online Shopper Penetration, by Region, in % of Internet Users, incl. Middle East & Africa, 2013 - 2018f
Mobile Phone Users, in millions, and Penetration, in % of Population, by Countries in the Middle East and Africa, incl. Saudi Arabia and UAE, Ranked by Penetration in 2014, 2013 - 2018f
Smartphone Users, in millions, and Penetration, in % of Mobile Phone Users, by Countries in Middle East and Africa, incl. Saudi Arabia and UAE, Ranked by Penetration in 2014, 2013 - 2018f
E-Commerce Sales in MENA, in USD billion, 2013 & 2020
Breakdown of E-Commerce Sales in MENA, by B2C, B2B, G2B/C and Other, in % and in USD billion, 2020f
Devices Used to Access the Internet in MENA, in % of Internet Users, April 2014
Breakdown of Frequency of Shopping Online in MENA, by Selected Product Categories, in % of Internet Users, April 2014
Breakdown of E-Commerce Sales in GCC, by Countries, in % and in USD billion, 2020f
B2C E-Commerce Sales, in USD million, by GCC Countries, 2010 - 2014e
Share of Banked Internet Users Who Access the Internet to Shop Online, in %, 2012 & 2013
Share of Online Shoppers Who Prefer to Shop from Local Websites Compared to Foreign Websites, in %, 2013
Reasons for Not Shopping Online, in % of Consumers who Do Not Shop Online, by Middle East and Worldwide, 2013
Most Offered Payment Methods in B2C E-Commerce, in % of Online Shops, 2012 & 2013
Number of Internet Users, in millions, by Saudi Arabia, the UAE, Jordan and Lebanon, 2013
Internet User Penetration, in % of Individuals, by Selected Countries, 2013
Devices Used, in % of Surveyed Consumers, by Israel, Saudi Arabia and the UAE, March 2014
Breakdown of Place of the Last Purchase, incl. Online, in % of Internet Users, by Israel, Saudi Arabia and the UAE, March 2014
Share of Online Shoppers Paying with Cash on Delivery, in %, by Country, 2014e
Payment Card Penetration per 100 Inhabitants, by Bahrain, Kuwait, Oman, Saudi Arabia and the UAE, 2013
3. United Arab Emirates
B2C E-Commerce Overview and International Comparisons, February 2015
Share of Online Shoppers Buying or Browsing and Buying via Mobile Phones, in %, March 2014
Breakdown of the Last Online Purchase, by Device Used, in % of Online Shoppers, March 2014
Share of Cross-Border Online Shoppers, in % of Online Shoppers, November 2014
Product Categories Most Purchased from Online from Overseas Websites, in % of Cross-Border Online Shoppers, November 2014
M-Commerce Sales, in AED million, 2013 & 2014
E-Commerce Sales, in USD billion, 2013 & 2018f
Breakdown of E-Commerce Sales, by Airline Tickets and Other Categories, in % and in USD billion, 2013
B2C E-Commerce Sales, in USD billion, 2010, 2012 & 2014e
B2C E-Commerce Sales of Goods, in AED billion, 2012, 2013 & 2019f
Share of B2C E-Commerce on Total Retail Sales of Goods, in %, 2014 & 2019
Internet Penetration, in % of Individuals, 2010 - 2013
Number of Internet Subscriptions, in thousands, 2012 - 2014
Online Purchase Intention by Product Categories, in % of Online Shoppers, March 2014
Breakdown of Online Purchase Transactions, by Product Category, 2014e
Payment Methods Used in B2C E-Commerce, in % of Online Shoppers, 3 Months to February 2014
Overview of B2C E-Commerce Players, February 2015
Breakdown of B2C E-Commerce Players by Value Share, in %, 2014
Breakdown of Businesses by Main E-Commerce Sales Method, in %, 2013
4. Saudi Arabia
B2C E-Commerce Overview and International Comparisons, February 2015
Breakdown of the Last Online Purchase, by Device Used, in % of Online Shoppers, March 2014
Number of Mobile Broadband Subscriptions, in millions and in % of Population, 2010 - 2013 & Q2 2014
B2C E-Commerce Sales, in USD million, 2010, 2012 & 2014e
Share of B2C E-Commerce on Total Retail Sales, in %, 2013
Number of Internet Users, in millions and in % of Population, 2010 - 2013 & Q2 2014
Internet Penetration, in % of Individuals, 2010 - 2013
Online Shopper Penetration on Adult Internet Users, in %, 2013
Breakdown of Online Purchase Transactions, by Product Category, 2014e
Overview of B2C E-Commerce Players, February 2015
Breakdown of the Last Online Purchase, by Website Type, in % of Online Shoppers, March 2014
5. Israel
B2C E-Commerce Overview and International Comparisons, February 2015
Share of Cross-Border Online Shoppers, in % of Online Shoppers, November 2014
Breakdown of the Last Online Purchase, by Device Used, in % of Online Shoppers, March 2014
E-Commerce Sales, in ILS billion, 2013, 2014e & 2016f
Internet Penetration, in % of Individuals, 2010 - 2013
Activities Carried Out Online, incl. Online Shopping, in % of Internet Users, 2014
Online Shopper Penetration, by Gender, Age Group and Per Capita Monthly Household Income, in % of Internet Users in the Relevant Group, 2012
Product Categories Purchased Online, in % of Online Shoppers, 2013
Share of Companies Which Use Their Websites to Sell Online, in % of Companies Which Have a Website, July 2014
6. Qatar
B2C E-Commerce Overview and International Comparisons, February 2015
Devices Used to Connect to the Internet, in % of Internet Users, 2012 & 2013
Mobile Shopper Penetration, in % of Banked Internet Users, 2013
B2C E-Commerce Sales, in USD million, 2010, 2012 & 2014e
Internet Penetration, in % of Individuals, 2009 - 2013
Activities Carried Out Online, incl. “Purchasing or Ordering Goods or Services”, in % of Internet Users, 2013
Online Shopper Penetration, by Socio-Demographic Group, in % of Internet Users in the Relevant Group, 2013
Reasons for Shopping Online, in % of Online Shoppers, 2013
Reasons for Not Shopping Online, in % of People Who Do Not Shop Online, 2013
7. Bahrain
B2C E-Commerce Overview and International Comparisons, February 2015
Number of Mobile Broadband Subscriptions, in thousands, Q3 2013 - Q3 2014
Activities Carried Out via Mobile Internet, incl. “Purchasing or Ordering Goods or Services”, in % of Mobile Internet Users, 2014
B2C E-Commerce Sales, in USD million, 2010, 2012 & 2014e
Internet Penetration, in % of Individuals, 2009 - 2013
Activities Carried Out Online, incl. “Purchasing or Ordering Goods or Services”, in % of Internet Users, 2011 & 2014
8. Kuwait
B2C E-Commerce Overview and International Comparisons, February 2015
B2C E-Commerce Sales, in USD million, 2010, 2012 & 2014e
Internet Penetration, in % of Individuals, 2009 - 2013
Breakdown of Online Purchase Transactions, by Product Category, 2014e
9. Oman
B2C E-Commerce Overview and International Comparisons, February 2015
Device Ownership, incl. Mobile, in % of Households, 2013
Smartphone Penetration, by Gender and Age Group, in % of Individuals, 2013
B2C E-Commerce Sales, in USD million, 2010, 2012 & 2014e
Internet Penetration, in % of Individuals, 2009 - 2013
Activities Carried Out Online, incl. “Purchasing or Ordering Goods or Services”, in % of Internet Users, by Gender, 2013
10. Iran
B2C E-Commerce Overview and International Comparisons, February 2015
Internet Penetration, in % of Individuals, 2009 – 2013
11. Jordan
B2C E-Commerce Overview and International Comparisons, February 2015
Internet Penetration, in % of Individuals, 2009 - 2013
Internet Penetration, by Gender and Age, in %, 2013
Share of Individuals Purchasing or Selling Goods and Services Online, in %, by Age and Gender, 2013

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