Today's Edition
SARA ALZAABI (ABU DHABI)
Checkout.com has released its fifth annual report, titled "The State of Digital Commerce in MENA 2025 – Trends That Matter: Insights into Changing Consumer Behaviour".
The report gives a comprehensive look at digital transformation in MENA, drawing on five years of date, with a focus on consumer insights, regulation shifts and technological innovation.
It reaffirms the UAE’s position as a world leader in digital transformation and fintech adoption, ranking it as one of the most advanced digital economies in the world.
Commenting on the study, Remo Giovanni Abbondandolo, General Manager, MENA at Checkout.com, said that "the region is not catching up, it is leading the world".
"MENA is one of the most exciting places in digital commerce, and we are proud to help turn innovation into real impact," he said.
Online purchases have surged by 320% in the UAE, by 300% in Saudi Arabia, and by 275% in Egypt since 2020, according to the report.
In this timeframe, Checkout.com noted a 626% increase in total processing volume globally, with the UAE registering a 1333% surge and 177% year-on-year growth, from 2023 to 2024, respectively.
"Fast, secure, intelligent payments are now a key differentiator," added Abbondandolo.
He said companies that thrive in this environment see payments as a product, not infrastructure, and one integral to every touchpoint in the user experience.
The report is based on a Checkout.com and YouGov survey of 18,000 adults from around 16 countries (UAE, Saudi Arabia, Egypt and other global markets), and findings were corroborated with network data from Checkout.com (gathered from billions of transactions and fraud trends).
Beyond daily shopping, more consumers were turning to digital platforms for their routine purchases, with food delivery leading the way as the top-performing vertical capturing a 57% share of online purchases, while clothing and fashion came in second with a 48% of online spending, and travel snapping the third place at 38%.
This underscores the diverse and dynamic nature of the UAE's e-commerce landscape, not only in terms of volume, but in the wide range of goods and services that consumers are now confident in purchasing online, the study found.
The trend is expected to continue, with 62% of UAE shoppers confirming that they will increase their online purchases in 2025.
The report found that traditional cash-on-delivery usage has fallen by 53% since 2020, as more people trade digitally.
Currently, 42% of consumers in the UAE send money weekly with digital wallets, and 35% are actively using fintech platforms for investment and wealth management.
Artificial intelligence (AI) adoption was on the up; 46% of shoppers were using generative chat tools to enhance their experience and 37% were using visual search AI to help them find products faster.
The digital shift is also affecting in-store habits; 44% of consumers searched online for alternatives whilst in-store shopping.
Retailers have responded by embedding QR code discounts and AR product previews in stores.
As digital transactions increase, security concerns are rising too.
The percentage of UAE consumers reporting online fraud jumped from 35% in 2023 to 57% in 2024, and 23% have abandoned shopping carts due to concerns over data security.
Consequently, businesses are taking advanced technologies like machine learning, behavioural biometrics and real-time anomaly detection for consumer protection in a big way.
