The e-commerce and gifting markets in the Middle East, valued at $1.8 billion, experienced notable growth in 2024. A recent report from Flowwow, a gifting marketplace based in the UAE, and Admitad, a partner marketing platform, reveals that online orders in the UAE grew by 7.0%, while Saudi Arabia saw a 9.0% increase. This growth reinforces their leadership in the region’s e-commerce market, which is currently valued at $1.8 billion.
The analysis of over 6.8 million online orders across MENA (including Turkey and Pakistan) in 2024 reveals Saudi Arabia, the UAE, and Kuwait as top contributors by gross merchandise value (GMV) of online sales. The strong performance of Saudi Arabia and the Emirates is driven by active consumer spending and e-commerce growth. Turkey and Egypt complete the GMV top 5, thanks to large populations and digital expansion. Markets like Morocco, Pakistan, Qatar, Algeria, and Bahrain also benefited from increased mobile commerce.
In MENA, the AOV grew from $30 in 2023 to $35.6 in 2024, with the UAE showing a rise from $89 to $102 and Saudi Arabia from $49.6 to $52.5.
Looking at the top product categories for order growth in MENA in 2024, online gaming was the clear winner, with orders up 32%. B2B services and fashion also did well, seeing increases of 25% and 23% respectively. This indicates the audience’s demand for digital entertainment, professional solutions, and online retail. The UAE reflected this trend, with the growth in B2B online services (+32%) and online gaming (+30%) at the top, with a strong increase in orders in electronics (+19%), home goods (+18%), and car products categories (+16%).
The research also shows a significant increase in average order values (AOV) in the region in 2024. In MENA, the AOV grew from $30 in 2023 to $35.6 in 2024, with the UAE showing a rise from $89 to $102 and Saudi Arabia from $49.6 to $52.5.
Looking at the top product categories for order growth in MENA in 2024, online gaming was the clear winner, with orders up a whopping 32%. B2B services and fashion also did well, seeing increases of 25% and 23% respectively. This indicates the audience’s demand for digital entertainment, professional solutions, and online retail. The UAE reflected this trend, with the growth in B2B online services (+32%) and online gaming (+30%) at the top, with a strong increase in orders in electronics (+19%), home goods (+18%), and car products categories (+16%).
Government initiatives supporting digital transformations in the UAE and MENA are key drivers of these figures and the overall growth of e-commerce. Programs, like the UAE’s Digital Economy Strategy, Saudi Arabia’s Vision 2030, and the Arab Digital Economy Vision, which focus on technological innovations and AI capabilities, will contribute to the local e-commerce industry by creating a more efficient online ecosystem for businesses and consumers.
MENA e-commerce is moving toward AI-driven personalisation, community-oriented strategies, tailored marketing approaches, and content platforms like TikTok and Pinterest as key shopping hubs for Generation Z. While AI streamlines processes, human-centric customer service remains irreplaceable for trust and loyalty in the e-commerce industry. These trends are fueled by the impact of a younger consumer base, digital interest, and a growing preference for online shopping, which is particularly evident in the gifting segment.
Due to the overall growth of the e-commerce market, online payments, and rising incomes, MENA countries are experiencing a boom in the experience economy and online gifting sector. According to recent research, the UAE Gifting Market is projected to grow at a CAGR of 14.7% during 2024-2030. The UAE’s gifting market is thriving, driven by the presence of over 200 nationalities and a rich gift-giving culture tied to cultural and personal occasions such as weddings, birthdays, and other celebrations. Recent data indicates significant growth in the MENA gifting market, which is projected to reach $6.38 billion by 2030.
Dubai leads the sales with more than 11 thousand customers per year and the highest average order cost (352 AED, $96), driven by its dynamic retail ecosystem and high purchasing power. The top-performing cities by average order value also include Ras al-Khaimah (295 AED, $80), Abu Dhabi (229 AED, $62), Ajman (188 AED, $51), and Sharjah (175 AED, $48). The average order value in the UAE increased by 4.92% and reached 254.69 AED ($69.34 USD).
Among the fast-growing e-commerce categories, gifting and flowers reached a market share of 0.6% in the MENA e-commerce total sales. Saudi Arabia took the lead with a 1.2% share, followed by the UAE at 0.4%. Overall, flowers appeared as the most popular gift category in the UAE in 2024, accounting for 43.5% of total purchases. This category had an average order value of 254 AED ($69), making it a clear favorite among customers. Other growing categories included confectionery, bakeries, and bento cakes with 3.7% of purchases at an average check of 126 AED ($34.3), and balloons, contributing 1.7% of purchases with an average order value of 166 AED ($45).
The development of the e-commerce and gifting markets, along with support for local entrepreneurship (SMEs), drives economic growth and creates new opportunities for both individuals and local businesses in the region.
The MENA $50 billion e-commerce continues to develop trends based on user-friendly technology, community-driven mechanics, and personalized mobile shopping experiences. Flowwow and Admitad predict that in 2025, MENA e-commerce will continue to grow, driven by the overall expansion of the digital economy and government initiatives across the region.
