Retail is booming in the Middle East and North Africa region, with the e-commerce sector experiencing remarkable growth in 2024. Saudi Arabia, the UAE, and Kuwait are emerging as the region’s top contributors to online sales by gross merchandise value (GMV). According to a joint report by Flowwow and Admitad, the market expanded by 30%, reaching a valuation of $1.80 billion.

Online orders in the UAE and Saudi Arabia surged by 7% and 9%, respectively, reinforcing their dominance in the region, outpacing the MENA average growth rate of 5%. Turkey and Egypt also ranked among the leading markets, benefiting from large populations and accelerated digital adoption.

Other markets, including Morocco, Pakistan, Qatar, Algeria, and Bahrain, also reported significant gains, primarily driven by increased mobile commerce penetration. The growing use of smartphones and improved digital infrastructure have enabled more consumers to participate in online shopping.

The study highlighted a substantial rise in the region’s average order value (AOV). In 2024, MENA’s AOV grew from $30 in 2023 to $35.60. The UAE saw a notable increase, with AOV rising from $89 to $102, while Saudi Arabia’s AOV climbed from $49.60 to $52.50.

Online gaming emerged as the fastest-growing product category, with orders skyrocketing by 32%. B2B services and fashion also recorded strong growth, increasing by 25% and 23%, respectively. These trends indicate a shift in consumer behavior, with more shoppers embracing digital-first shopping experiences across diverse categories.

Anna Gidirim, CEO of Admitad, said, “MENA e-commerce is moving toward AI-driven personalization, community-orientated strategies, tailored marketing approaches, and content platforms like TikTok and Pinterest as key shopping hubs for Generation Z.”

The UAE’s gifting market is another standout sector, projected to grow at a compound annual growth rate (CAGR) of 14.7% between 2024 and 2030. With over 200 active sellers—150 of whom are based in Dubai—the industry has flourished, offering more than 24,000 gift options, from flowers to jewelry. This expansion has strengthened local entrepreneurship and enhanced revenue growth through diverse offerings and rapid fulfillment services across key cities.

Slava Bogdan, CEO of Flowwow, said, “The expansion of the e-commerce and gifting markets, alongside support for local SMEs, is driving economic growth and creating new opportunities for businesses and individuals in the region.”

The broader MENA e-commerce market, currently valued at $50 billion, continues to evolve with trends centered around user-friendly technology, community-driven engagement, and personalized mobile shopping experiences. Flowwow and Admitad predict that the sector will witness continued growth in 2025, fueled by the digital economy’s expansion and supportive government initiatives across the region.

“The MENA region, particularly the UAE, is central to our company’s global development. With our record-breaking results in 2024, we anticipate even greater achievements ahead. By 2025-2026, we project a fourfold increase in growth, with a year-on-year growth rate exceeding 300%,” Bogdan said.

As MENA’s digital landscape evolves, e-commerce remains a driving force in the region’s economic transformation, positioning the UAE and Saudi Arabia at the forefront of this dynamic shift.