The EVP and Managing Director of Cleartrip, Sameer Bagul says that the e-commerce sector in the Middle East is heading on for a quantum leap. Cleartrip’s Middle East operations became profitable in just three years from launch and over the last five years, a number of deals reflect this development, the most recent one being Noon’s partnership with eBay. This association will help customers to buy products from the US and other parts of the world. The next deal was a whooping $800m Amazon Souq deal that made headlines globally. The estimate of digital shoppers in Saudi Arabia can be compared to the numbers in India, making opportunities in this sector crystal. Furthermore, making debit cards online-friendly in Saudi will open up a huge market for other players. More factors on which the e-commerce ecosystem can capitalize are pricing, countless selection and a logistics strategy.
According to Payfort’s State of Payments 2017 report, goods and services worth $30.5 billion were brought online in 2016 in the Middle East. UAE and Saudi Arabia contributed around $20 billion of the total value. With these numbers estimated to be less than two percent of the total retail sales volume, it can only be concluded that the growth here is huge.
Source: Arabian Business