The Gulf Cooperation Council (GCC) e-commerce retail market is growing significantly during the forecast period (2018-2023). The major factors influencing the GCC market includes low price of crude oil, increasing internet penetration, increased profit margin due to direct channel of distribution, and developed infrastructure in major countries. Economic crude oil prices in Gulf region enable to cut transportation cost compared to other regions. Increasing exclusive launches on online stores such as Amazon, Flipkart and Snapdeal also motivates the e-commerce companies to create lead over competitors and expand their market share. Direct channel of distribution enables the companies to offer competitive price to end users and optimize profits for the e-commerce companies. GCC nations have large population using internet which provides larger target market to the companies. The major countries among the GCC nations such as Saudi Arabia, UAE, Oman and Kuwait also have well developed infrastructure which provides greater opportunity to the e-commerce market to serve larger population.
The GCC e-commerce retail market provides various opportunities to the e-commerce retailers for growth and expansion, however, political instability in some countries and cost of reverse logistics is a concern for the growth of this market. Political instability can affect any business in the nation. Few countries in GCC faces political instability such as Bahrain and Qatar that negatively affects the e-commerce companies to expand their businesses. Cost for reverse logistics is also a challenge for e-commerce retailors since it increases the expenditure for the company which affects profitability.
Moreover, there is still significant growth potential in this region considering the high levels of disposable income, growing internet and smartphone penetration within the GCC countries. The e-commerce has the largest market share in the UAE and Saudi Arabia among the GCC countries due to growing use of internet and high disposable income. GCC countries have developed infrastructure and larger area as compared to other regions. The market of Qatar and Kuwait are considerably growing due to presence of developed infrastructure and over 75% of internet users. Comparatively Oman and Bahrain are expected to grow modestly among the GCC nations due to less population, however, it still holds potential to grow due to high disposable income and quality infrastructure.
The e-commerce market of GCC are dominated by players such as Amazon.com Inc., Algiftz.com, Awok.com, BASHARACARE, NextDirect, Wadi, Souq.com, BRANDSbay, Rakuten Kobo Inc., and CrazyDeal Store. The consumers in the GCC nations still prefers to purchase with cash on delivery option rather than going for online payment mode. However, the e-commerce companies and mobile wallet companies are regularly coming up with exciting online payment offers which encourages the customers to pay online through digital wallet, debit card and credit card.
GCC e-commerce retail market research and analysis, by end user
GCC e-commerce retail market research and analysis, by product
GCC e-commerce retail market research and analysis, by device used
The Report covers:
Comprehensive research methodology of GCC e-commerce retail market
This report also includes detailed and extensive market overview with key analyst insights.
Exhaustive analysis of macro and micro factors influencing the market guided by key recommendations.
Analysis of regional regulations and other government policies impacting the GCC e-commerce retail market
Insights about market determinants which are stimulating the GCC e-commerce retail market
Detailed and extensive market segments with regional distribution of forecasted revenues.
Broad profiles and recent developments of market players.