As the MENA e-commerce landscape continues to evolve, we’ve been tracking key trends that seemed unstoppable just a short time ago. But recently, we’ve noticed a reversal — from the rise of omnichannel players to the comeback of cross-border shopping and, most notably, a return to price sensitivity. These changes are reshaping the region’s retail market in surprising ways.
Read on as we explore how these trends are unfolding across the UAE, KSA, and Egypt, and what it means for the future of online retail.
1. Omnichannel retailers are gaining momentum as competition heats up…
The competition between omnichannel players and pure e-tailers is intensifying across markets. In the mature retail markets of UAE, omnichannel retailers such as Carrefour are gaining momentum, capitalizing on a shift away from e-tailer dominance. As e-commerce platforms like Amazon and Noon focus more on profitability, consumers are noticing fewer discounts, which has caused some e-tailers to lose market share. Meanwhile, in KSA, the rivalry between omnichannel and e-tailers is heating up, especially in sectors like electronics, where brands like Jarir are experiencing significant growth. At the same time, e-tailers like Shein and Temu continue to dominate in categories such as fashion and beauty, catering to a consumer base that values convenience and variety.
In Egypt’s nascent market, e-tailers are currently leading the charge, with Amazon and Noon driving substantial growth. Despite economic challenges, the adoption of Buy Now, Pay Later (BNPL) solutions has allowed consumers to maintain access to goods, making e-tailers particularly resilient in this environment.
2. And cross-border shopping is making a comeback…
2023 has also seen a remarkable resurgence of Cross-Border Trade (CBT), particularly in the fashion sectors of the UAE and KSA. In the UAE, where rising living costs have made consumers increasingly price-conscious, there has been a noticeable shift toward more affordable international platforms like Shein and Temu. Shoppers are now looking beyond local options in search of better deals, fueling the growth of cross-border purchases.
In KSA, changing cultural preferences and an increasing demand for Western styles are also driving the growth of CBT. Platforms such as Shein and Trendyol are tapping into this evolving consumer demand, offering greater variety and catering to shifting tastes. This signals a broader trend where shoppers across both the UAE and KSA are exploring cross-border options as they seek value and variety beyond their domestic markets.
3. With price making its way back on top as key decision driver
Across the MENA region, economic pressures have caused price to once again become the most significant factor in consumer decision-making. In the UAE, inflation and rising rents have put a strain on household budgets, leading shoppers to prioritize value-driven products and discounts. Retailers have been quick to adjust their strategies, focusing on affordability to meet the growing demand for budget-friendly options.
In Egypt, the impact of inflation and currency devaluation has been even more pronounced. By 2024, 68% of Egyptian consumers are citing price as their primary purchase driver, a sharp increase from 50% the previous year. These economic challenges have reshaped consumer behavior, making value the top priority across all segments.
As a result, platforms and retailers across the region will need to continue focusing on delivering affordability if they hope to drive sustained consumer adoption and spending in the months ahead.