Around 62% of online purchases in Saudi Arabia were made on mobile devices, making it the country with the highest adoption rate of mobile commerce.

The MENA e-commerce market is predicted to grow significantly and reach USD 50 billion by 2025, according to the report. Activity in this market significantly increased over the holiday season.

Gifting marketplace Flowwow, based in the United Arab Emirates (UAE), reported a 62% increase in purchases, an 86% increase in sales turnover, and a 15% to 76% increase in average order value over the prior year.

“The festive season is one of the peak shopping periods for Flowwow gifting marketplace. It’s a time when our customers focus on celebrating and sharing joy through thoughtful gifts for their loved ones,” Slava Bogdan, CEO of Flowwow, said.

“Starting with White Friday in November and continuing through the Christmas and New Year festivities, this period represents a critical shopping time in the GCC region, especially with the growing expat population,” he continued.

David Cantatore, retail lead at NielsenIQ Middle East, told the Arabian Gulf News Insight that bricks-and-mortar stores remain crucial but “this trend suggests significant potential for further market entrants”.

Online sales at Landmark Retail, the USD 7 billion Dubai-headquartered retail conglomerate with brands including Babyshop, Max Fashion, Shoexpress and Home Centre, contribute one-fifth of the company’s annual revenue.

Kabir Lumba, the company’s CEO, said this side of the business is growing by more than 20% per year thanks to investment in its supply chain and expanding its logistics operation. The business now boasts 35 distribution centres across the Gulf region.

Black Friday sales and Christmas and New Year’s preparations made November 2024 the busiest month for e-commerce, the study found.

Additionally, sales increased by 11% and 14% during Ramadan in March and International Women’s Day in January, respectively. The average order value in the region increased from USD 30 in 2023 to USD 36 in 2024, indicating a trend toward higher spending on high-quality goods.

In 2024, mobile commerce accounted for 44.6% of all orders in the region, according to the report. Adoption rates in the UAE, Bahrain, and Oman were 60%, 59%, and 58%, respectively, behind Saudi Arabia’s lead. Strong adoption rates of mobile commerce were also observed in Kuwait and Qatar, at 57% and 54%, respectively.

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