e-Commerce in Gulf Cooperation Council Region to reach bn by 2015

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IMRG has partnered with Visa to launch a new quarterly overview of the burgeoning e-commerce market across the Gulf Cooperation Council (GCC) countries.

The GCC incorporates Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates.

The in-depth study, which is part of Visa's ongoing drive to build e-commerce in the region, identifies current levels of e-commerce performance and potential by assessing the breadth of existing research undertaking in the region. It covers trends, data and forecasts concerning e-commerce in the GCC as part of a world-class comparison to key markets.
 
Booming economy to spur growth of e-commerce
Online shopping in the GCC region is still in its early stages, but IMRG is convinced that the future is bright. In 2010 e-commerce volumes in the region totaled .3bn, but this is expected to grow exponentially in the coming years to reach bn by 2015.
 
The United Arab Emirates accounts for the largest share: an estimated .9bn or around 60%, followed by Saudi Arabia (0m), Qatar (5m), Kuwait (0m), Bahrain (5m) and Oman (m).
 
A  young population, high disposable income, ambitious ICT investment programs, important e-government initiatives, a growing multichannel offer by retailers, and development of  better and more reliable delivery and payment options are the main factors expected to drive e-commerce spend upwards in the years to come.
 
Governments investing heavily in ICT
All countries in the region are investing heavily to develop e-government programs such as the ePay gateway in Dubai, eOman, Qatar's ICT 2015 and the e-Learning portal, and the Saudi e-Government Portal. All these and other private initiatives will contribute to the further growth of e-services in the region: e-government, e-education and most importantly e-commerce.
 
"e-Commerce is without doubt one of the crucial drivers for the world economy, and increasingly the region's. With such a significant increase in internet usage, it's no surprise that the internet is quick becoming the cornerstone for business and communication," said John Andrews, Managing Director of IMRG. "However, there's still some way to go if e-commerce in the region is to meet its full potential."
 
Stephen Leeds, e-Commerce Business Leader for Visa Middle East, added: "Online shopping is still in its infancy in the region but all the signs are there that it will continue to grow, such as government commitment, retailer investment and –most importantly – a young population open to trying new technologies and innovations. However, we're still faced with the same barriers here that we see around the world, with lack of trust and payment security regularly being cited as key concerns for people when choosing whether to shop online.
The report will be made available to businesses and the government to help them understand the significant trends in the region and plan their e-commerce strategies - a particularly important area of focus as internet usage in the region has grown by a staggering 1,500% since 2000, up from a mere 1.2 million users in 2000 to a massive 18.7 million in 2010.

Register now for the Retail Bulletin's International Expansion Summit, sponsored by GfK, March 27th 2012.The day's theme will be: Driving sales and market share, mitigating risk and strengthening your business through international multichannel growth strategies.
Speakers already confirmed are from WH Smith, TUI Travel PLC,  Tesco, New Look, Aurora Fashions, The Carphone Warehouse Group, Karen Millen, The Hamleys Group and Wiggle.
This event is designed to be interactive and delegates will have excellent networking opportunities throughout the day with chances to ask our international growth experts their burning questions through our conference sessions and Twitter feed.

If you or your colleagues would like to attend this crucial event, please click here for further details.

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