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1 November, 2020

GCC E-Commerce to touch $50B by 2025

The UAE e-Commerce sector is expected to reach $6.7 Billion by 2025, while the e-Commerce market in GCC is expected to reach a value of $50 Billion by 2025, as per estimates by Consulting firm Kearney Middle East.

Over the next 5 years, e-Commerce is predicted to be the main driver of growth in the retail sector. Between 2020 and 2022, the sector is expected to see growth of 20% annually, after which there is expected to be a 14% annual growth until 2025. These growth estimates were largely boosted by the onset of Covid-19. Without the impact of Covid-19, these same numbers were pegged at 14% and 10% respectively in earlier estimates.

The estimates have clearly displayed the impact of Covid-19 pandemic in the economic growth, and more specifically the e-Commerce sector.

According to Kearney Middle East, the earlier estimates put a growth figure of 35% CAGR between 2015 and 2020 for the e-Commerce sector. At the end of 2019, the market value had reached $19 Billion and showed strong signs of maturity and stability.

The future economic outlook, business pivoting into alternate channels such as e-Commerce, the business continuity model and the focus on a digitally driven economy have all contributed to a very strong future image for e-Commerce in the region.

With declining sales in physical stores, only 36% of SMEs have made investments in e-Commerce retailing. In future, only 4% are expected to sell online. This naturally presents a huge potential for the future growth of the sector.

 

Source: albawaba

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