E-commerce in the Middle East and North Africa (MENA) region is rapidly evolving, and its growth trajectory is set to continue into 2025. Projected to reach nearly $50 billion by 2028, the MENA e-commerce market is becoming a hotbed of innovation.
As businesses adapt to new technologies, they must address the opportunities and challenges that arise. In this dynamic environment, flexibility and forward-thinking strategies are essential.
The 5 Key E-Commerce Trends in MENA for 2025
Based on insights from Vera Modenova, COO of Flowwow, here are five major trends that will shape MENA e-commerce in 2025.
1. Personalized Shopping Experiences Powered by AI
Artificial Intelligence (AI) is transforming online shopping by offering customers highly personalized experiences. Many brands are harnessing AI-driven algorithms to analyze massive datasets, including browsing history, purchase behavior, and cultural preferences. This allows companies to tailor their marketing, product offerings, and customer support to create unique shopping experiences.
In the MENA region, voice commerce is a major growth area, driven by the increasing demand for AI-powered shopping assistants. The challenge lies in accommodating the diverse Arabic dialects, which require sophisticated natural language processing (NLP) systems to deliver a seamless experience. NLP technology can now understand the subtleties of different Arabic dialects, enhancing voice-activated shopping platforms.
A standout example of this innovation is the Yasmina smart speaker from Yango. Recognizing the limitations of existing voice assistants like Amazon Alexa, Yango developed a solution that caters specifically to Arabic-speaking audiences.
Yasmina is trained to understand various dialects and respond in a culturally relevant way. For example, it can differentiate between speakers and adjust its language for different age groups, such as using simpler vocabulary when speaking to children. This level of customization ensures a personalized and contextually appropriate shopping experience.
2. The Rise of Social Media Shopping
Social media has become a powerful tool for e-commerce in the MENA region. Platforms such as TikTok, Instagram, Pinterest, and Snapchat have revolutionized the way people shop by integrating shopping features directly into the app.
These features include shoppable posts, in-app storefronts, product tagging, and livestream shopping events, allowing users to browse and purchase items without leaving the platform.
With 90% of consumers prioritizing authenticity when making purchasing decisions, there has been a significant rise in the importance of user-generated content (UGC). Consumers are more likely to trust and purchase from brands that share genuine content, often from influential bloggers or everyday users. This trend has encouraged brands to partner with social media influencers and bloggers to create authentic, relatable content that resonates with their audiences.
Furthermore, cultural relevance plays a significant role in MENA’s e-commerce success. Brands are increasingly localizing their products and campaigns to reflect the region’s unique cultural nuances. Campaigns centered around local events such as Ramadan and national holidays are gaining traction.
These events provide brands with the opportunity to connect with consumers on a deeper level, showing respect for the region’s heritage while building stronger relationships with local audiences. For instance, during Ramadan in 2024, brands like Aldo, Flowwow, and Snapchat launched campaigns that emphasized unity and community, resonating with the values of the holy month.
3. Adapting to the Preferences of Younger Generations
As Gen Z and Generation Alpha continue to dominate the digital landscape, their preferences are shaping the future of e-commerce. These generations are tech-savvy, visually oriented, and seek immersive, interactive experiences. Short-form content, such as TikTok videos, Instagram Reels, and YouTube Shorts, is especially popular among younger audiences.
Traditional advertising methods are no longer effective with these younger generations. Instead, they are drawn to interactive content such as augmented reality (AR) filters, gamified ads, and virtual experiences.
Moreover, values like sustainability, inclusivity, and ethical practices are critical to winning the loyalty of Gen Z and Generation Alpha. Brands that authentically align with these values are more likely to build long-lasting relationships with these consumers.
For example, AR filters allow users to virtually try on products like makeup, clothing, or accessories, enhancing the shopping experience by providing a fun and engaging way to interact with products. Gamified ads, which incorporate elements of play and reward, also capture the attention of younger audiences and encourage deeper brand engagement.
4. Diversified Payment Solutions for Greater Flexibility
One of the most significant trends in MENA e-commerce is the diversification of payment options, which is making online shopping more accessible and convenient. Consumers in the region now have a wide range of payment methods at their disposal, including one-click biometric payments, secure digital wallets, and Buy Now, Pay Later (BNPL) options.
BNPL services, such as Tabby, Valu, and Tamara, are gaining popularity in the MENA market. These platforms offer interest-free installments, allowing consumers to split payments over time, which is especially appealing for higher-ticket items. The flexibility in payment scheduling caters to diverse financial needs and increases overall customer satisfaction.
For instance, Tabby’s user-friendly platform has boosted customer loyalty by offering transparency in fees and flexible payment options. As a result, Tabby enjoys a 40% repeat business rate, which highlights the growing demand for BNPL services in the region. The success of BNPL providers like Tabby has also spurred competition, leading to further innovation and improvement in the sector.
In addition to BNPL, the MENA region is witnessing an increasing interest in cryptocurrency payments. As blockchain technology continues to gain traction, many consumers are now using digital currencies to complete online transactions. This shift reflects the growing acceptance of cryptocurrencies in MENA and highlights the region’s innovative approach to financial technology.
5. The Emergence of Metaverse Marketing
The concept of the metaverse has begun to reshape how brands interact with their audiences. In 2025, metaverse marketing will become a crucial part of the e-commerce landscape, especially for younger audiences such as Gen Z and Millennials. The metaverse offers brands a virtual space where they can engage customers through immersive experiences that go beyond traditional advertising.
Metaverse marketing involves creating virtual stores, product launches, and events that allow customers to interact with brands in novel and engaging ways. For example, brands are designing virtual environments that adapt to users’ preferences, enabling highly personalized and immersive experiences.
In 2023, Roblox reported more than 240 brand integrations, with players spending increasing amounts of time interacting with branded content in the game. This type of engagement is driving brand loyalty and encouraging repeat interactions.
Moreover, combining metaverse marketing with AI tools allows businesses to track user behavior in real-time, providing insights that help personalize experiences even further. Brands can offer customized in-game items, virtual rewards, and exclusive events that deepen consumer engagement and foster long-term relationships.
Looking Ahead
In 2025, MENA e-commerce will continue to evolve at a rapid pace, driven by technological innovations and changing consumer preferences. From AI-powered personalized experiences to the rise of social media shopping and the growing popularity of BNPL and cryptocurrency payments, the region is embracing new trends that cater to a diverse and tech-savvy population.
Brands that can adapt to these trends and create authentic, immersive experiences will be well-positioned to thrive in the competitive e-commerce landscape of the future.
The future of MENA e-commerce will be defined by businesses that are agile and open to experimentation. As the market grows, companies that embrace these five trends will not only meet the needs of their customers but also set new standards for innovation and customer engagement.
With a focus on personalization, inclusivity, and cultural relevance, MENA e-commerce is set to reach new heights in 2025 and beyond.
