E-tail to lead digital economy growth in Mena

05 July 2021
Projections by Indian consulting firm Redseer forecast that the Middle East and North Africa's digital economy will reach $100bn by 2023

Electronic retail (e-tail) will play a key role in the growth of the digital economy in the Middle East and North Africa (Mena) region, says latest newsletter from Indian consulting firm Redseer.

The value of Mena region's digital economy is projected to reach nearly $100bn in 2023, from its 2020 value of $44bn and $52bn in 2019.


The growth is attributed to rising internet penetration in the region - over 85 per cent of the population has access to internet. In the UAE and Saudi Arabia, over 95 per cent of the population has access to internet.

The drop in use of online travel platforms is said to have led to a reduction in the size of the overall digital economy in 2020.

By 2023, e-tail will account for nearly $41bn (42 per cent) of the digital economy in the Mena region.

The firm further adds that e-tail penetration in the UAE and Saudi Arabia is still behind other mature countries such as the US. This could be in part due to the lack of larger ticket investments in the segment, with is a significant skew in investment values less than $100m. 


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