The impact of e-commerce on the economy of the Arab world

The impact of e-commerce on the economy of the Arab world

The impact of e-commerce on the economy of the Arab world. Many people wonder about the extent of the impact in the recent period, as the economy in the Arab world has revived in the current period due to e-commerce, and this is what we will talk about in detail in today’s article.

The size of e-commerce on the economy of the Arab world

• Growing E-commerce volume In the Arab world year after year.
• Social media has encouraged a large number of e-stores and commercial transactions on the Internet, and this highlights the impact of e-commerce on the economy of the Arab world.
• This is what blossoms the future of e-commerce in the Arab world, due to its high-quality products at lower prices than traditional markets.
• The volume of e-commerce in the Arab world last year exceeded $15 billion, with an annual growth rate exceeding 28.5%.
• This is despite the great obstacles facing this field in the Arab world.

See also: The size of e-commerce in the world and its most important advantages

What is the future of e-commerce in the Arab world?

• Economists expect that the volume of e-commerce in the Arab world will continue to grow and become a regular pattern of commerce.
• The volume of application-based transactions will increase three times more than web-based transactions.
• All companies will also design easy-to-use applications to reach their audience everywhere, and this is expected to increase the number of users significantly.

What are the factors for the prosperity of e-commerce in the Arab world?

• One of the most important factors contributing to the prosperity of the future of e-commerce in the region is the major shift towards electronic payment systems and the digitization of the country’s sectors.
• One of the most important of these operations is supporting emerging companies in the field of financial technology.
• In addition, the number of social media and digital media users is increasing sharply in the region.
• About 77% of citizens spend their time on Instagram only.

What are the Arab countries that most use e-commerce?

We mention in the following lines the impact of e-commerce on the economy of the Arab world:

The United Arab Emirates

• The UAE topped the list of Arab countries with the most online shopping, accounting for 35% of the total trade in goods and currencies during the past year.
• More than 63% of the UAE population shops online.
• The UAE is also considered one of the best Arab countries that possess a distinguished infrastructure in the field of financial technology.

Kingdom of Saudi Arabia

• Saudi Arabia ranks second on the list of Arab countries with the most online shopping, accounting for 10% of the total trade in goods and currencies over the past year, with about 47% of the population shopping online.
• Saudi Arabia has also become a dark horse in the race for digitization and digital infrastructure development.
• Given the shift from countries that prefer cash payments to a country that excels in digital payments, it is a very noticeable and important shift.

The Egyptian Arabic Republic

• The Arab Republic of Egypt ranks third on the list of Arab countries with the most online shopping, with a slight difference from the Kingdom of Saudi Arabia.
• It accounted for 11% of the total trade in goods and currencies over the past year.
• This is despite the fact that with a population of over 100 million, about 22% of the population makes purchases online.

Kuwait

The State of Kuwait comes in fourth place, with an estimated population of three million three hundred thousand people, about ninety percent of whom are Internet users, and about forty percent of whom buy online.

Read also: The future of e-commerce

What is the impact of e-commerce on the economy of the Arab world?

• There are 90 million e-commerce consumers in the Arab world and the Middle East.
• It is expected that the volume of e-commerce in the Arab world will reach $15 billion next year.
• The number of dealers in the Arab world has reached about 15 dealers and is increasing until it has now reached 39. This is undoubtedly a very high growth rate.
• There are about 8 million daily visitors to Souq.com from the Arab world.
• In contrast, the number of monthly subscribers to the site reaches 3.5 million.
• In the Gulf countries, total e-commerce sales in the year amounted to about $3,320 million.
• In 2015, e-commerce sales totaled $5,000 million.
• In the past ten years, Arabs' use of the Internet has increased by 2,500.
• The number of Arab Internet users reached 70 million out of 350 developed Internet institutions.

What is the future of e-commerce in the Arab world?

• App-based transactions will grow three times faster than web-based transactions.
• Businesses will work hard to design easy-to-use apps, and investing in this area will pay off, especially as more and more users turn to their phones and tablets to make payments.
• The payment method in equal monthly installments will be quickly adopted by consumers.
• Equal monthly payments will become a common feature in e-commerce.
• Consumers choose to pay for their expensive purchases in installments.
• This will become especially popular in the travel industry, as consumers in the Middle East will begin to pay for airline tickets and hotels this way.
• The first e-commerce law in the Arab world will be drafted.
• Across the GCC, trust in e-commerce is a major challenge for the sector.
• This law will generate profits, increase consumer confidence in well-known digital brands and impact the overall market.
• Finally, Egypt's retail banking sector will grow, attracting more people to the digital economy.
• Egypt has low rates of financial inclusion.
• Only 10 individuals over the age of 15 have an account in an official financial institution in Egypt.
• Without a credit or debit card, it is difficult to make transactions online.
• As the retail banking sector grows, more people in Egypt will be able to access the world of e-commerce and use credit and debit cards.