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    Home » MENA e-commerce grew by 30% in 2024, new report suggests
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    MENA e-commerce grew by 30% in 2024, new report suggests

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    Flowwow, a UAE-based gifting marketplace, and Admitad, a partner marketing platform, have released their joint 2024 report on the e-commerce and gifting markets in the Middle East. The market, valued at $1.8 billion, saw significant online orders growth in 2024, with 7% increases in the United Arab Emirates and 9% in Saudi Arabia, solidifying their positions as the region’s industry leaders. 

    The analysis of over 6.8 million online orders across MENA (including Turkey and Pakistan) in 2024 reveals Saudi Arabia, the UAE, and Kuwait as top contributors by gross merchandise value (GMV) of online sales. The strong performance of Saudi Arabia and the Emirates is driven by active  consumer spending and e-commerce growth. Turkey and Egypt complete the GMV top 5, thanks to large populations and digital expansion. Markets like Morocco, Pakistan, Qatar, Algeria, and Bahrain also benefitted from increased mobile commerce.

    Online orders in the UAE and Saudi Arabia surged ahead, growing by  7% and 9% in online orders, compared to an average 5% growth across the MENA region. The research also shows a significant increase in average order values (AOV) in the region in 2024. In MENA, the AOV grew from $30 in 2023 to $35.6 in 2024, with the UAE showing a rise from $89 to $102 and Saudi Arabia from $49.6 to $52.5. 

    Looking at the top product categories for order growth in MENA in 2024, online gaming was the clear winner, with orders up a whopping 32%. B2B services and fashion also did well, seeing increases of 25% and 23%, respectively. This indicates the audience’s demand for digital entertainment, professional solutions, and online retail. The UAE reflected this trend, with the growth in B2B online services (+32%) and online gaming (+30%) at the top, with strong increase in orders in electronics (+19%), home goods (+18%), and car products categories (+16%). 

    Government initiatives supporting digital transformations in the UAE and MENA are key drivers of these figures and the overall growth of e-commerce. Programmes like the UAE’s Digital Economy Strategy, Saudi Arabia’s Vision 2030, and the Arab Digital Economy Vision, which focus on technological innovations and AI capabilities, will contribute to the local e-commerce industry by creating a more efficient online ecosystem for businesses and consumers. 

    “MENA e-commerce is moving toward AI-driven personalisation, community-orientated strategies, tailored marketing approaches, and content platforms like TikTok and Pinterest as key shopping hubs for Generation Z. While AI streamlines processes, human-centric customer service remains irreplaceable for trust and loyalty in the e-commerce industry,” said Anna Gidirim, CEO of Admitad.

    These trends are fuelled by the impact of a younger consumer base, digital interest, and a growing preference for online shopping, which is particularly evident in the gifting segment.

    The UAE Gifting Surge: Record-Breaking 200% Growth in 2024

    Due to the overall growth of the e-commerce market, online payments, and rising incomes, MENA countries are experiencing a boom in the experience economy and online gifting sector. According to recent research, the UAE Gifting Market is projected to grow at a CAGR of 14.7% during 2024-2030. The UAE’s gifting market is thriving, driven by the presence of over 200 nationalities and a rich gift-giving culture tied to cultural and personal occasions such as weddings, birthdays, and other celebrations. Flowwow data indicates significant growth in the MENA gifting market, which is projected to reach $6.38 billion by 2030. In 2024, the marketplace attracted over 13,000 customers in the Emirates, resulting in a total of 20,782 gift orders per year. The company saw revenue growth of 212.6%. The number of gift purchases increased by 198.21%, and the number of buyers grew by 160.03% in the country in 2024 compared to 2023. 

    This growth was driven by several key factors. Firstly, the expansion of the company’s seller network across different categories and the development of the local professional community for sellers around Flowwow. Secondly, the focus on tailored solutions: the launch of the premium collection, innovative mobile app features, and targeted marketing campaigns for major holidays that resonate deeply with Emiratis and expats.

    Dubai leads the sales with more than 11 thousand customers per year and the highest average order cost (352 AED, $96), driven by its dynamic retail ecosystem and high purchasing power. The top-performing cities by average order value also include Ras al-Khaimah (295 AED, $80), Abu Dhabi (229 AED, $62), Ajman (188 AED, $51), and Sharjah (175 AED, $48). The average order value in the UAE increased by 4.92% and reached 254.69 AED ($69.34 USD). These figures demonstrate the company’s strong performance within the UAE’s rapidly expanding gifting market. The gifting marketplace currently processes up to 2,500 orders per month, reflecting a monthly increase in purchasing activity of up to 1.5 times.

    Among the fast-growing e-commerce categories, gifting and flowers reached a market share of 0.6% in the MENA e-commerce total sales. Saudi Arabia took the lead with a 1.2% share, followed by the UAE at 0.4%. Overall, flowers appeared as the most popular gift category on Flowwow in the UAE during 2024, accounting for 43.5% of total purchases. This category had an average order value of 254 AED ($69), making it a clear favourite among customers. Other growing categories included confectionery, bakeries, and bento cakes with 3.7% of purchases at an average check of 126 AED ($34.3), and balloons, contributing 1.7% of purchases with an average order value of 166 AED ($45). 

    The gifting marketplace’s UAE GMV (Gross Merchandise Value) reached $1.5 million in 2024, showing a 170% year-over-year growth. The company projects a GMV of more than $6 million by 2025, representing a 300% year-on-year growth. This is anticipated to result in a market share of approximately 20-25%, increasing from 6% in 2024. In 2024, the UAE accounted for an impressive 24%, almost a quarter of the company’s total revenue on global markets among 30 countries, thus underlining the important role this region plays in its success. 

    “The development of the e-commerce and gifting markets, along with support for local entrepreneurship (SMEs), drives economic growth and creates new opportunities for both individuals and local businesses in the region. The MENA region, with the UAE in particular, leads the drive in our company’s development in the global market. Our record-breaking 2024 results have set the stage for even greater growth to come. In 2025-2026, we are expecting a 4x increase and YoY growth of +300% in the region,” Slava Bogdan, CEO of Flowwow, commented.

    The gifting marketplace solidified its position in the United Arab Emirates, with over 200 active sellers, with 150 based in Dubai. These local sellers have made significant contributions to revenue growth by offering more than 24,000 available gifts across the UAE, from flowers to jewellery, to cater to varied customer preferences and ensure rapid fulfilment across key cities. 

    The MENA $50 billion e-commerce continues to develop trends based on user-friendly technology, community-driven mechanics, and personalised mobile shopping experiences. Flowwow and Admitad predict that in 2025, MENA e-commerce will continue to grow, driven by the overall expansion of the digital economy and government initiatives across the region.

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