Middle East eCommerce at the Cusp of a Massive Boom


Partnership among big players of the region with international players show how Middle East is ready to embrace a massive boom in the sector.

The recent partnership between Noon, an online retailer launched by Emaar founder Mohammad Alabbar, and the US eCommerce giant eBay shows how the region is moving towards an access to international products through the online medium. Though eCommerce is still at a preliminary stage in UAE, these developments show how the consumers are getting ready to compete with its own brick-and-mortar stores by the establishments of online marketplaces which are huge and of international standards.

Noon is funded by Saudi Arabia’s Public investment fund and a number of prominent Gulf investors. Very soon, the company will start delivering products of eBay to the doorstep of customers throughout UAE and Saudi Arabia. Even the products shipped from US qualify for returns through Noon’s portal with complete refund option based on the established terms and conditions.

According to Mohammad Alabbar, “We are offering our customers access to products that are not otherwise readily available in the region. E-commerce continuously evolves, and this partnership guarantees Noon stays on top of the trends and consumer preferences.”

Heating eCommerce Marketplace in the UAE

The Noon-eBay partnership is not the only one giving a boom to the UAE eCommerce sector. This announcement came immediately after the whopping $800 m deal between Souq and Amazon and other 51% acquisition of fashion retailer Namshi by Emaar Mall’s Groups. The acquisition took place for $151m. According to research and studies, the ecoomerce market in UAE will grow at an estimated rate of 7.2% and could value around $23.7 billion by 2022.

However, the local ecommerce market still needs a lot of be done in the field of logistics and delivery performance. Satisfying the customers with timely delivery still is the need of the hour. Other factors that remain of prime concern are bottomless search results for products and price comparison feature. Getting more players in the industry will help improve a healthy competition among them leading to better service offers to the end users.

Endless Opportunities in UAE eCommerce

Even though there have been major changes in the industry scenario and the government’s role, the ecommerce still stands at a single digit figure in the UAE. The partnership between Noon and eBay is still showing the larger picture of the upcoming boom, the space is still welcoming for other players. With companies like eBay and Amazon bringing international standard of products, services, and eCommerce strategies, partnering with the local players, the competition is sure to surge more. A number of other rivals are expected to enter the competition and take UAE ecommerce sector to a new level.


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