Saudi Arabia and the UAE are driving online retail sales across the GCC, while Egypt is playing a pivotal role in the success of the sector in Africa, according to Stefano Martinelli, retail director – KSA and UAE, Amazon.
Martinelli told Arabian Business: “Both consumer and business behaviours over the last couple of years have accelerated growth of this already thriving sector.”
In 2020, the coronavirus pandemic resulted in an increase in online spending in Saudi Arabia, with overall revenue projected to reach $7,703 million this year.
While e-commerce in the UAE also emerged as the fastest-growing economic segment in the Middle East – supported by rising digital connectivity, infrastructure and substantial growth in consumer electronics, apparel, and footwear.
E-commerce currently makes up 3.8 percent in KSA and 4.2 percent of total retail in the UAE.
“Consumers have become even more aware of the increasingly larger selection of products they have access to online, at the best prices, while shopping from the comfort of their own homes. In parallel, businesses have continued to grow their presence online, expanding their operations to connect with millions of customers,” said Martinelli.
E-commerce adoption in the region is showing an annual growth rate of 25 percent and is forecast to hit $28.5 billion by 2022.
“Looking ahead, we know that the Middle East remains full of opportunity, as the region’s economies continue to witness an increase in mobile users,” said Martinelli. “We continue to be excited by the potential to continue to invest, create jobs, develop talent and have a positive impact in communities across the region.”
To continue capitalising on the e-commerce boom, particularly in Saudi Arabia, Amazon recently announced plans to open five new delivery stations in Jeddah, Mecca, Abha, and Dammam. The buildings, which total 36,000 sqm in area, will enable next day and same day deliveries, on orders placed before midnight, to customers based in these regions.
“In addition to employing people in Amazon’s delivery stations, the new delivery station openings will also create hundreds of job opportunities for Amazon’s Delivery Service Partners, during the holiday season, bolstering Amazon’s growing pool of homegrown Saudi talent,” explained Martinelli.
Martinelli was speaking as Amazon.ae launched its annual White Friday sale, which started on Monday and is set to run through to November 29, with savings of up to 70 percent for customers on electronics, home, kitchen, beauty, fashion, sports items and more.
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