It’s not just about online shopping—though that’s certainly part of it. Mostly it’s about the end of retail as we know it. The rise of global cross-border ecommerce — especially in the GCC (Gulf Cooperation Council; Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the UAE) — is transforming how consumers engage with brands, creating opportunities that no retailer can afford to ignore. The explosion in Middle East ecommerce growth should get your attention.

Staying competitive in the fast-moving Middle East ecommerce landscape will require more than just offering great products at competitive prices. Retailers will need to invest in localized services, offer a seamless digital experience, and provide fast, reliable delivery options to meet the expectations of Gulf States’ consumers.

A Fast-Moving Market

The region’s rapid digital transformation, combined with rising consumer demand for international products, presents a massive opportunity for businesses worldwide. The GCC countries are experiencing seismic shifts in how retail is conducted. With a population that is young, digitally savvy, and increasingly global in its tastes, the demand for cross-border ecommerce is growing fast. In fact, as reports suggest, the region’s cross-border retail market is set to expand by 25 percent annually over the next five years, indicating an appetite for international brands and retail solutions.

The numbers don’t lie: In the UAE alone, more than 80 percent of online shoppers purchase from international websites. This trend is echoed in Saudi Arabia, where cross-border sales account for over 60 percent of total online spending. These aren’t just statistics—they represent a fundamental change in consumer behavior, driven by the desire for larger product variety, competitive pricing, and the convenience of online shopping.

More Than Just a (Shopping) Trend

What’s driving this cross-border Middle East ecommerce boom is more than just consumer desire for international goods; it’s also about a highly connected retail ecosystem. In fact, according to the New Global Digital Index, created by the RLC Global Forum in partnership with EMARKETER, consumers in the region are some of the most digitally engaged in the world and their time spent online exceeds the global average in all key digital media categories; in some areas, they rank at the very top. 

Saudi Arabia, for example, ranks #1 of 49 countries surveyed when it comes to time spent on streaming and online TV; the UAE comes in at #3 in this category behind Egypt. These statistics make them the perfect playing ground for global ecommerce giants such as Amazon, AliExpress, Shein, and Temu. These brands have tailored their services to cater to GCC customers, offering localized websites in Arabic, payment solutions, and faster shipping. Local logistics companies like Aramex have also risen to meet this demand, providing reliable cross-border shipping and delivery services that ensure faster and more efficient international transactions.

The China Effect

China’s cross-border ecommerce is not just a side note in the global retail narrative—it’s a driving force. In 2023, Chinese cross-border transactions made up over 40 percent of the country’s total import-export value, and this is just the beginning. This robust growth is expected to continue, with the country’s cross-border ecommerce market projected to reach $500 billion by the end of 2025.

At the forefront of this wave are Middle East eCommerce giants like AliExpress, owned by Alibaba Group, as well as the rise of apps like Temu that leverage China’s growing retail prowess. Temu became the most downloaded ecommerce app globally in 2023, amassing nearly 338 million downloads. This remarkable growth is a testament to its appeal, fueled by its ability to deliver massive value and low prices. PDD Holdings, the parent company, saw its revenue surge by 51.9 percent in 2023, outpacing all other ecommerce platforms worldwide.

Then there’s Shein, the fashion ecommerce behemoth that refuses to slow down. In 2023, the company raked in an impressive $32.5 billion in revenue—$10 billion more than the year before—cementing its position as a key player in the global retail space. With over 262 million downloads in 2023 and 218 million website visitors in a single month, Shein is a major force in fashion, revolutionizing how consumers shop globally—a clear reminder that China’s cross-border ecommerce brands are not just growing, they are reshaping global shopping habits and intensifying competition in markets like the GCC.

Challenges in the Cross-Border Landscape

Not all is smooth sailing, though. There are several challenges that cross-border ecommerce faces in the GCC. One of the primary hurdles is the complexity of customs regulations, which can vary between GCC countries. These regulatory differences can increase the time and cost involved in international shipping. Additionally, customs duties and taxes on foreign goods can sometimes diminish the attractiveness of purchases.

Logistics can also be a challenge, particularly for smaller retailers that lack the resources to provide fast, affordable international shipping. Even with advanced local infrastructure, delivery times for cross-border goods can sometimes be longer than consumers expect, especially when compared to the rapid delivery times offered by local platforms.

What the Middle East eCommerce Future Holds

As technology continues to advance and infrastructure improves, the barriers to cross-border shopping will continue to decrease. Local retailers will increasingly look to expand their global reach, while international brands will be eager to tap more into the growing GCC market.

However, staying competitive in this fast-moving landscape will require more than just offering great products at competitive prices. Retailers will need to invest in localized services, offer a seamless digital experience, and provide fast, reliable delivery options to meet the expectations of Gulf states’ consumers.

Local retailers, ecommerce platforms, and mall operators, faced with growing competition from international giants like Shein and Temu, will also need to step up their game to stay relevant. Besides, they have a distinct advantage: an in-depth understanding of the cultural nuances and preferences of the local market, which global players may struggle to replicate.

These insights about the Middle East eCommerce, along with the latest retail industry report, New Global Digital Index: GCC Edition, created by the RLC Global Forum in partnership with EMARKETER, will be unveiled at the two-day 2025 RLC Global Forum in Riyadh on February 4- 5.

Note: RLC Global forum is a Robin Report Collaborative Partner