E-commerce in the Arab world

E-commerce in the Arab world

E-commerce has spread in the Arab world, just as it has spread in all countries of the world. E-commerce has achieved remarkable growth in Arab countries according to standards. DigitizationHowever, this growth did not reach the expected rate in light of the spread of electronic shopping, as data indicated that online shopping is largely limited to those with high incomes, in addition to the reliance of electronic store owners on goods that are imported from abroad.

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Reasons for the slow growth of e-commerce in the Arab world

In general, Arab countries lack advanced digital infrastructure, in addition to the loss of various industrial sectors, which has directly affected the growth and prosperity of e-commerce in the Middle East and North Africa, in addition to several other reasons, which are:

1. The Arab world has not yet reached the path of producing exportable goods. Arab countries produce only a small number of products and they are not included in the lists of global products of value, which reduces the opportunities for local companies to benefit from e-commerce.
2. Reliance on imported products and goods led to an increase in the intensity of competition for local companies, which turned into unfair competition due to the scarcity of locally produced goods.
3. Although a large percentage of Arab consumers have switched to shopping through electronic stores, especially during the period of the Corona epidemic, studies have shown that this increase came based on the use of smart phones supported by high internet speeds, as in the UAE and the Kingdom of Saudi Arabia, while you will not find this advantage in other countries. Others, as is the case in North African countries.
4. The major retailers in the Gulf countries have seized all the features and benefits of e-commerce, after establishing partnerships with foreign partners and people with high capital, and they have begun to expand their markets by bringing in new products and goods. An example of this is what the Souq platform, which is based in the UAE, did. By merging it with the international company Amazon, and the Noon platform, which entered into a partnership with eBay, which made it easier to bring many new international products and pump them into the Arab market through local trade sites. However, the goods sold on these platforms remain imported goods, and most of them come from China. .

How can e-commerce be developed in the Arab world?

Although the Arab consumer base has expanded to switch to shopping through electronic stores, local stores are not keeping pace with this expansion, which has led to these stores losing their customers to suppliers and stores that offer foreign products.
Part of the solution to this problem is to build a digital infrastructure and address the constraints facing emerging companies, such as facilitating electronic payment processes and accelerating Internet services, in addition to providing local companies with materials that would give them the ability to compete with foreign companies until they reach equal opportunities and equality in The competition.

Thus, e-commerce in the Arab world, despite its spread in the recent period, still suffers from some restrictions that limit its growth and development, and reliance on imported products and goods is one of the most important points that directly affects the diminishing level of competition between local companies and foreign suppliers. Governments must start building a strong digital infrastructure so that they can advance e-commerce and local goods.