Middle East and Africa E-commerce Market to Surpass USD 338 Billion by 2031 Growing at 13.85% CAGR During 2026-2031

Market Expands Rapidly Driven by Smartphone Adoption, Logistics Investment and Rising Disposable Incomes

Dublin, March 18, 2026 (GLOBE NEWSWIRE) -- The "Middle East and Africa E-commerce - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2026-2031)" has been added to ResearchAndMarkets.com's offering. The report segments the market by factors such as business models, device types, payment methods, and product categories.

The Middle East and Africa e-commerce market is set to experience significant growth, with its value projected to increase from USD 176.68 billion in 2026 to USD 338.08 billion by 2031, exhibiting a CAGR of 13.85%. This growth is driven by several factors, including rising disposable incomes in the Gulf, accelerating smartphone upgrades, and strategic investments in logistics, which collectively expand the market of online shoppers.

Innovative tools and practices, such as ultra-fast delivery systems and embedded-finance options, are reducing checkout friction and enhancing the consumer experience. Cross-border commerce, particularly between China and GCC countries, along with intra-Africa trade routes, is on the rise, indicating improved integration with global supply chains. Collaborations between fintech and e-commerce firms are leading to the development of credit-at-checkout solutions, helping to increase basket sizes and fostering digital adoption.

Rising Smartphone Penetration

Smartphones are a major driver of e-commerce, facilitating 72.41% of regional B2C transactions. Increasing 4G and 5G coverage, combined with affordable data plans, make features like video listings and augmented-reality shopping more accessible, substantially boosting conversion rates. Super-app functionalities encourage users to remain within the app ecosystem, significantly enhancing repeated engagements. In markets such as Saudi Arabia, mobile-initiated orders saw a 9% increase from the previous year, highlighting a growing predilection for mobile commerce.

Government-Led Initiatives

Government strategies, like Saudi Arabia's Vision 2030, focus on fostering digital transformation. Various reforms and whatnot are reducing reliance on cash, with cash-on-delivery preferences halved across the region. Fintech sandboxes have paved the way for innovative payment solutions, increasing merchant confidence and facilitating accelerated B2B transactions.

Security and Fraud Concerns

As the market expands, security emerges as a pressing concern, particularly due to fraudulent chargebacks and data breaches. Stronger authentication measures and advanced fraud-detection systems are being implemented to mitigate risks. Despite efforts to improve security, concerns about data safety can still deter first-time buyers.

Other Market Drivers and Restraints:

• Expansion of logistics infrastructure
• Adoption of digital wallets
• Challenges in expanding rural broadband connectivity

Segment Analysis

The B2C segment dominated with 87.02% of the GMV in 2025; however, B2B volumes are rapidly increasing at a CAGR of 15.97%, driven by wholesalers seeking transparency and efficiency. Technological adoption, such as blockchain smart contracts in B2B transactions, is expected to further fuel growth. Consumer platforms are also experimenting with B2B models, as evidenced by Carrefour 's wholesale initiatives.

Technological Enhancements

A significant contributor to market growth is the increased use of mobile technology. Smartphones are predicted to continue their dominance, facilitating immersive shopping experiences through innovations like voice search and augmented reality. Technological advancements such as 5G will enhance live sales events and seamless low-signal checkout processes, further driving the region's e-commerce industry.

List of companies covered:

• Amazon .com Inc.
• Noon AD Holdings SPC
• Jumia Technologies AG
• Alibaba Group Holding Limited (AliExpress)
• Namshi General Trading LLC
• Souq.com FZ-LLC ( Amazon Services)
• SHEIN Group Ltd.
• Temu (PDD Holdings Inc.)
• Takealot Online (Pty) Ltd.
• Konga Online Shopping Ltd.
• Costco Wholesale Corporation
• Shopify .
• Carrefour Online (Majid Al Futtaim Retail)
• Flipkart Internet Pvt. Ltd.
• Best Buy Co. Inc.
• Zando Online South Africa (Pty) Ltd.
• Jiji.ng (Genesis Technology Partners)
• Wadi.com FZ-LLC
• Mumzworld FZ-LLC
• Bash.com (Basharsoft)

Additional benefits of purchasing this report:

• Access to a market estimate sheet (Excel format)
• Three months of analyst support

For more information about this report visit https://www.researchandmarkets.com/r/o9lyhf

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