Mena region’s e-commerce market expected to reach $57bn in 2026

Business Monday 12/February/2024 18:17 PM
By: Times News Service
Mena region’s e-commerce market expected to reach $57bn in 2026

Muscat: Mena’s e-commerce sector is expected to reach $57 billion in 2026, with an annual compound growth rate of 11 per cent.

Since cross-border trade was introduced to the region, Mena has experienced significant growth, according to Flextock, a leading e-commerce enabler in the Middle East.

Flextock is set to elevate the sector further with its offering of a cross-border trading services portal, contributing to a projection of the regional e-commerce industry’s gross merchandise value (GMV) reaching $140 billion by 2027. While the company operates across several sectors, fashion and cosmetic merchants will be notable beneficiaries.

A particular focus for Flextock has been the Kingdom of Saudi Arabia in recent years. The tech-centric company has ventured into cross-border trading services to fully unlock the region’s e-commerce potential.  With the Mena region’s overall economy projected to rise by 2.9 per cent in 2024 and 4.2 per cent in 2025, from an estimated 2 per cent in 2023 , Flextock's decision to launch a cross-border trading services portal reinforces its commitment towards empowering businesses to reach international markets.

The cross-border trading services portal offered by Flextock includes all the actions required to make it easier for businesses to expand to and from Saudi Arabia, Egypt and the UAE. Key features include international shipping, customs clearance, tariff and trade compliance, and international payment solutions, among others, to provide a seamless trading experience for merchants. The company’s expertise encompasses domestic operations, from fulfilment capabilities to product delivery to end users with local customer support to guarantee a hassle-free experience and facilitate smooth and successful financial transactions for suppliers. All of these aspects are meticulously crafted to suit the specific requirements of a business’ cross-border trade through a customised plan that is aligned with the goals and objectives of customers seeking to expand their operations.

To date, Flextock has helped tens of merchants scale operations in the region within only three months of launching its new cross-border trading services portal, demonstrating the efficacy of its operations. These retailers, who operate in a variety of industries including fashion, cosmetics, and home accessories, have seen a notable boost in their customer base and financial gains. It has also increased the visibility of their business and opened up new revenue streams.  To transcend geographic boundaries, Flextock gives retailers access to new markets with a wider range of demographic options as they aim to onboard +1500 merchants in the coming years. The subsequent result will translate to over $1.4 billion in annual cross-border sales by 2026, reinforcing the company’s contribution to the ever-evolving landscape of e-commerce and logistics in the Mena region.

Mohamed Mossaad, CEO of Flextock, commented: “We believe that true success in e-commerce is not just about navigating the logistics space but also understanding the pivotal role of exposure in key markets. Recognizing the immense potential of Saudi Arabia, the UAE, and what Egypt has to offer, we are dedicated to supporting merchants on their journey for expansion. Our distinguishing feature lies in the depth of our support system, where we go above and beyond by taking care of detailed legalisation and registration procedures. This ensures our partners have a seamless, quick and efficient entry into the dynamic Saudi market - and as always, we will continue leveraging technology to ensure our merchants are afforded the best possible solutions for their success.”

Flextock’s competitive advantage lies in its ability to manage the entire process from end to end. Merchants can efficiently track inventory, orders, and other essential metrics through the company’s user-friendly portal. By actively seeking ways to improve its offerings, such as it has done through the launch of its cross-border trading services portal, Flextock is solidifying itself as a pivotal partner for brands and merchants looking to scale their operations. This approach is opening doors and creating the necessary conditions for merchants to thrive in international trade, simultaneously encouraging merchants’ growth objectives and serving to unlock the full potential of Mena’s e-commerce industry.

Flextock is an e-commerce enabler that operates in the Middle East and Africa (MEA). Established in January 2021, the company has witnessed rapid growth since its inception, including a tenfold Year-over-Year net revenue increase upon entering Saudi Arabia. Leveraging technology and scale, Flextock has strategically acquired hundreds of merchants and currently dispatches thousands of daily orders.