E-Commerce & Social Commerce Take Off in the Arab World

E-Commerce & Social Commerce Take Off in the Arab World

When you look at the Arab world’s digital retail landscape, the numbers catch your attention. In 2024 the entire Middle East e‑commerce market was valued at about US$1,888 billion, with a projected climb to nearly US$10,957 billion by 2033.

Meanwhile, in countries like the United Arab Emirates (UAE) and Saudi Arabia the social commerce market alone is forecast to grow from around US$11.7 billion in 2024 to over US$133 billion by 2033.

What this really means is that the region is shifting rapidly from traditional retail to online retail and social‑first shopping. If you are a brand, a marketer or simply an observer of digital commerce, paying attention to this region makes sense.

E‑commerce growth in the Arab world: key numbers and drivers

In the broad view of the Arab region, the growth of e‑commerce has clear patterns. For example, in 2024 the UAE and Saudi Arabia saw online orders rise by 7 % and 9 % respectively, while average order value in the UAE jumped from about US$89 to US$102 and in Saudi Arabia from US$49.6 to US$52.5. E‑commerce penetration, though still lower than global averages, is rising fast. One market study places MENA’s e‑commerce penetration at roughly 4 % of total retail sales in 2024, whereas in the UAE mature markets the rate reached about 14 %. Why is this happening? A few factors stand out:

  • Smartphone and internet adoption are high in Gulf countries, giving consumers easy online access.
  • Governments are setting digital economy targets (for example Saudi’s “Vision 2030” strategy) which push payment systems, logistics and regulatory frameworks.
  • Younger consumers favour convenience and social media exposure when shopping.
  • Logistics, payment infrastructure and cross‑border trade are improving, making online retail more reliable.

For a business operating in the Arab world, these drivers show that the environment is primed for growth. Adapting to consumer behaviour, mobile commerce and local payment options become essential.

Social commerce in Arab markets: how it differs and why it matters

It helps to define social commerce: it is the buying and selling of goods or services through social media platforms or social networks. In the Arab markets the traction is real. Saudi Arabia’s social commerce market is estimated to grow by more than 30 % annually in 2024 alone, reaching US$1.71 billion in that year. In the UAE the market is projected to reach US$133.5 billion by 2033, with strong growth beginning in 2025. What sets it apart in the Arab world:

  • Social media is deeply embedded in everyday life; platforms such as Instagram, TikTok and WhatsApp are major communication tools as well as shopping discovery channels.
  • Influencers and live‑stream selling are growing; younger shoppers rely on peer opinions, product reviews and social proof.
  • Mobile‑first behaviour means that shopping, payments and checkout often happen via smartphone rather than desktop.
  • The integration of “social” and “commerce” means the path to purchase is shorter: consumers see a product in a feed, click, pay and receive, sometimes in the same app.

Because social commerce reduces friction and taps into impulse and discovery, it matters for brands. If you only have a standard e‑commerce site and ignore the social channels, you risk missing a fast‑growing slice of the market.

Major markets and success stories in the Arab region

Let’s focus on key markets. Saudi Arabia is emerging as a leader. Its e‑commerce sector registered around 40,953 businesses by Q4 2024, a 10 % increase year‑on‑year. The projection that e‑commerce in Saudi Arabia will capture about 46 % of retail spending by 2030 emphasises how big this shift could become.

The UAE stands out with high spending per order and strong social commerce momentum: reports show that in the UAE over half of consumers (59 %) bought products through social channels in the previous 12 months. A practical success story: local marketplaces and global platforms serve cross‑border customers in the Gulf; for example one regional marketplace headquartered in Dubai serves over one hundred million products across over 100 countries. These examples show that brands and retailers who treat the Arab region as a local market (not just an export hub) can succeed.

Challenges and what businesses must focus on

Growth is strong but this region presents real challenges.
First, logistics remain a barrier in less developed areas; last‑mile delivery, returns management and reliable fulfilment still cost more.
Second, cultural and language localisation matter: Arabic language support, local currency, trust signals and payment methods are key.
Third, consumer trust and digital payments need continuous improvement; cash‑on‑delivery remains more common in some segments, meaning higher risk of returns or failed transactions.

Fourth, economic and regulatory factors: for example smaller Arab states may face currency volatility, import duties, regulations on cross‑border trade.

Fifth, competition is rising: as more players enter the space, differentiation becomes essential. For businesses looking to grow in e‑commerce and social commerce in the Arab world the focus should be:

  • Localising the user‑experience: language, payment, mobile UX, region‑specific marketing.
  • Investing in mobile‑first design and social discovery since many customers start in apps.
  • Using influencer, live‑stream or social‑platform strategies to tap discovery and social proof.
  • Ensuring reliable fulfilment and transparent returns to build trust.
  • Measuring metrics like average order value (AOV), conversion rates, cart abandonment specifically for the region.

Building brand awareness as local consumers may trust domestic or regionally‑relevant brands more.

Conclusion

The Arab world’s e‑commerce and social commerce market is no longer an emerging‑trend niche. It is a mainstream business region with serious growth. The takeaway for brands, retailers and digital teams is that operating here demands more than just opening a global storefront and expecting traffic. It requires a mindset shift: treat this region as a dynamic, mobile‑driven market where social discovery, mobile payments and local culture matter.

If you meet the expectations of agility, localisation and social engagement, you stand to benefit from one of the fastest expanding retail channels in the world. For the reader: if you are considering entering or scaling in the Arab world, begin by auditing how your mobile experience performs in Arabic, how your social content speaks to local habits, and how your payment and delivery options match regional expectations. The opportunity is there. The question now is readiness.