Bain & Company estimated the size of the e-commerce market in the Middle East & North Africa (MENA) at $8.3bn in 2017. It noted that the size of the e-commerce industry stood at $4.2bn in 2014, $5.3bn in 2015 and $6.7bn in 2016. As such, it pointed out that the size of the e-commerce market grew by a compound annual growth rate (CAGR) of 25% between 2014 and 2017. It indicated that the size of the e-commerce industry in Gulf Cooperation Council (GCC) countries and Egypt accounted for 80% of the region's e-commerce market. It said that the e-commerce market includes all business-to-consumer sales of groceries, fashion, personal care, beauty and electronics products. But it noted that the figures exclude business-to-business and consumer-to consumer e-commerce transactions, as well as food delivery, travel-related purchases, entertainment and other services, and the sale of automobiles. Further, it noted that e-commerce sales in the MENA region represented only 1.9% of the region's total retail sales in 2017, with the GCC region's e-commerce sales at 3% of their retail sales. It added that the UAE's e-commerce sales represented 4.2% of the country's retail sales, followed by Saudi Arabia (3.8% of retail sales), and Egypt (2.5% of retail sales). Further, Bain & Company anticipated that e-commerce in the MENA region could reach $28.5bn by 2022, which would constitute an expansion of 3.5 times from 2017. Still, it considered that a lack of trust for online payment methods as well as challenges related to the speed and cost of product delivery continue to hinder the development of e-commerce in the region. 
Source: Bain & Company