Global brands will choose the UAE to enter the MENA market
The digital sector of the economy of the United Arab Emirates will grow by 16% per year over the next 6 years, and these high growth rates will make the country a preferred entry point into the consumer market of the Middle East and North Africa for global brands.
The volume of the consumer spending market in the MENA region is estimated at US$ 1.5 trillion. The growth of the market and the attraction of global brands will be facilitated by a combination of factors such as high demand, farsighted management, first-class infrastructure and easy access to financing.
According to a study by the global consulting company RedSeer Strategy Consultants, companies and brands can start their journey in the US$ 100 billion market now to unlock the potential of the digital economy of the MENA region in the amount of US$ 500 billion by 2030.
Meanwhile, the UAE market has distinctive features, so having an individual approach is necessary to achieve success and scale on it. Currently, the UAE accounts for 30% (US$ 34 billion) of the total digital economy of the MENA region, which is US$ 111 billion.
The expected growth makes the UAE market attractive not only for companies operating in the e-commerce sector, but also for other emerging sectors. The RedSeer study showed that significant changes are currently taking place in the UAE market.
According to forecasts, the share of digital services will grow from 46% in 2022 to 57% by 2030, while the share of digital products will decrease in the same period from 54% to 43%. By 2030, 30% of all e-commerce spending will come from generation Z.
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