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.
Related reads:
You might also like...
McDermott completes financial restructuring exercise
28 March 2024
Region heads for hotel boom
28 March 2024
Lowest bidders emerge for Kuwait housing project
28 March 2024
Redcon wins Red Sea Triple Bay infrastructure deal
28 March 2024
A MEED Subscription...
Subscribe or upgrade your current MEED.com package to support your strategic planning with the MENA region’s best source of business information. Proceed to our online shop below to find out more about the features in each package.