MENA’s e-commerce market size expected to reach US$57 billion in 2026, says new report from EZDubai and Euromonitor

10X Technology

Mita Srinivasan
10X Technology
Published:

MENA’s e-commerce market size expected to reach US$57 billion in 2026, says new report from EZDubai and Euromonitor

MENA’s double-digit growth is due to robust internet usage, a well-developed infrastructure, and supportive policies. Several trends including the increasing popularity of digital payment platforms, the rise of online grocery shopping, and expanding tech initiatives also contributed.

The MENA e-commerce market size is expected to reach US$57 billion in 2026, with a CAGR of 11 percent over the 2022-2026 period. Although countries like the UAE, KSA and Israel are expected to remain leaders in e-commerce market share, countries like Algeria are expected to see strong growth, according to the third edition of EZDubai’s E-commerce Report in the MENA region.

The demand for online shopping services in the MENA region is expected to continue growing. In particular, consumer electronics are expected to have a penetration rate of 29 percent for KSA and 50 percent in Egypt within total e-commerce by 2026. Meanwhile, the food and drink industry in the UAE is projected to experience strong growth, with penetration rates reaching 13 percent by 2026. Additionally, the KSA's average order size is expected to increase by 50 percent in 2026. To sustain growth, Ecommerce players should prioritise personalisation of the online experience, adopt an omni-channel approach, and improve last-mile delivery services.

The UAE, KSA, and Israel accounted for 72.1 percent of the total market size, with the growth in these countries attributed to factors including their technologically advanced populations, high-internet usage rates, and strong government finances. The report also notes that companies in the UAE are making use of dark stores to streamline inventory management and provide delivery. Meanwhile, the KSA’s rapidly growing population, technological advancements, and development of secure payment systems contributed to its strong performance in the e-commerce sector.

Released in partnership with Euromonitor International, the EZDubai report revealed that MENA’s double-digit growth is due to robust internet usage, a well-developed infrastructure, and supportive policies. Several trends including the increasing popularity of digital payment platforms, the rise of online grocery shopping, and expanding tech initiatives also contributed. In addition, economic stability, technology investment, and a young, tech-savvy population fuelled the strong development of the digital landscape in the MENA region.

Mohsen Ahmad, CEO of Dubai South Logistics District, said: “The MENA region’s e-commerce industry has experienced rapid growth in recent years, driven by a combination of factors, such as increasing internet and mobile penetration, rising consumer demand for convenience and value, and the emergence of innovative business models. It is worth noting that government initiatives have also played a vital role in supporting this growth, with several regional governments implementing policies to support digital transformation and encourage entrepreneurship and investing in the necessary infrastructure and technology to facilitate e-commerce operations. At EZDubai, we recognise the strategic importance of e-commerce to the region’s economic development. We are committed to working closely with the government sector, and local and international businesses to further support the growth and success of this dynamic industry.”