Unlock the booming e-commerce market in the Middle East with our guide to localization. Learn key trends, market insights, and strategies to succeed in this lucrative region.
The Middle East represents a booming e-commerce market that your international business can't afford to ignore. Moreover, the B2C (business to customer) e-commerce market has been undergoing a pivotal shift as demonstrated by the largest Mergers and Acquisitions (M&A) transactions in the Arab world. This was Amazon's 2017 acquisition of Souq.com, the biggest e-commerce player in the Middle East which is known as the Amazon of the Middle East. So, let's explore what you need to know about localization in the Middle East if you want to succeed in this region.
The Gulf Cooperation Council (GCC) comprises six member countries – the United Arab Emirates (UAE), Saudi Arabia, Bahrain, Kuwait, Oman, and Qatar. The council aims to encourage online trade and facilitate foreign direct investment.
Online shopping has grown rapidly over the last decade and is expected to keep expanding. Middle East consumers have a big appetite for purchasing both local and global brands online. The region is home to people with high per capita income and is emerging as one of the world's fastest-growing markets. This post will look at the key markets and players and eCommerce trends in the Middle East markets.
Many UAE consumers purchase items from foreign websites. This is facilitated by the convenience and value provided by these sites, together with payment gateway security and free shipping. The value of e-commerce sales in the UAE is forecasted to reach US$27 billion by 2022.
Social media platforms such as Facebook, Instagram, and Twitter play an increasingly important role in influencing the e-shopping behavior of Arab consumers. The social media penetration rate is highest in the UAE and Qatar (99 percent).
The region has continued to develop its payment infrastructure. The Gulf region governments have taken many digitization initiatives to increase the use of online payment systems like digital wallets and net banking.
Until fairly recently, online sales in the Middle East represented just two percent of overall retail sales. This began to change as demonstrated by the UAE government, which, in 2014, set up a duty-free e-commerce hub known as Matajir.com to work closely with various international companies. This initiative helped to establish Dubai as a global eCommerce marketplace.
To attract more local customers who were not engaging in online shopping because of language barriers, many higher-end brands (e.g., Blue Nile, Burberry, and Dolce & Gabbana) launched websites in Arabic.
The UAE and Saudi Arabia lead the various markets encompassed by the Gulf Cooperation Council (GCC). The other countries (Kuwait, Bahrain, Qatar, and Oman) have a good e-commerce presence and growth, but their contributions to the GCC are less because of their lower population levels. Let's take a look at the two most important markets:
The UAE is the e-commerce capital of the Middle East, and over 60 percent of UAE customers purchase from international websites.
The Saudi Arabian e-commerce economy has been experiencing unprecedented growth. The lack of a substantial and diverse domestic e-commerce sector has led to consumers choosing international brands.
The opportunity is there for you to enter this lucrative market. However, Middle East localization is key to your success. Only a few years ago, the Arabic language had only a small amount of representation on the internet. However, today Arabic is one of the most important languages for website localization. There were more than 141 million Arabic internet users in 2017, and the number has kept growing. Localization in the Middle East must begin with your website being translated into Arabic and localized for the specific Middle East countries you wish to target.
Localize can help you claim a share of this lucrative e-commerce market using effective localization in the Middle East. We have tools to enable you to effectively translate and localize your website and app content into Arabic. Get in touch with us for more information.
At Localize, our passionate writers explore a wide range of localization topics, from technology trends to cultural insights. With diverse backgrounds in various fields, they bring unique perspectives to their articles, aiming to inform and inspire our readers.
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