E-commerce sector is thriving post COVID-19 outbreak in the Middle East
The total lock-down of many businesses improves the growth opportunities for the e-commerce sector in the Middle East as people turn to shopping online because of the absence of other options. The rise in electronic shopping during the past two months could also be attributed to the fact that these services help reduce time and effort, as well as help to avoid crowds in shopping centres. ‘Several factors play an important role in the prosperity of this electronic commerce sector, including the infrastructure in the field of technology, the quality of internet connection and the rate of internet penetration in society. These are factors governing the Gulf in general, particularly the United Arab Emirates (UAE), in which this sector is expected to achieve a constant growth rate of 23% on an annual basis until 2022,’ explained Co-Founder and CEO of ArabClicks Mauro Romano. During the first few months of 2020, continuous growth was reported in the UAEs’ e-commerce market, exceeding 5% of sales. It is expected that the retail sector in the Gulf will jump to around US$ 308 billion by 2023, compared to US$ 253 billion achieved in 2018. Moreover, Saudi Arabia and the UAE are said to account for 77% of the increase, making the UAE rank fifth among the 10 most prosperous countries in the retail sector worldwide.