Online shopping now a mainstream channel for a third of UAE and KSA consumers

03 June 2025 Consultancy-me.com

Over the past five years, the UAE and KSA markets region have seen a dramatic shift toward online shopping. Around one third of consumers now use ecommerce as a mainstream channel, while their appetite to shop online on a daily basis is now double what it was in 2020. That is according to new research from Checkout, a digital commerce player.

The 55-page report sheds light on the state of digital commerce in the MENA region, among others uncovering that online shopping has become mainstream for most – and is here to stay. Across the region, the frequency of online shopping has significantly increased as consumers integrate e-commerce into their daily habits and routines.

“With the convenience of fast, secure transactions and personalized experiences, shopping online has become a habitual part of life for many. This shift is driven by factors such as time-saving, easy access to a wide range of products, and the seamless nature of digital payment systems, making frequent purchases not just a convenience but an expected part of modern consumer behaviour,” stated Remo Giovanni Abbondandolo, General Manager of MENA at Checkout.

Daily online shopping has surged dramatically – a 139% increase in daily shopping was measured since 2020, led by the UAE (320% increase from just 5% in 2020 to 21% in 2025) and Saudi Arabi (300% rise from 6% to 24%).

Frequency of online shopping in the UAE

Beyond daily shopping, weekly and monthly online shopping have also seen strong upward trends across the region. More consumers are now turning to digital platforms for their routine purchases, according to the researchers on the back of greater trust in e-commerce, improved delivery infrastructure, and the growing convenience of ecommerce. 

Overall, online shopping has become a mainstream channel for around a third of all consumers surveyed by Checkout (over 1,000 in Saudi Arabia, the UAE and Egypt).

“The extraordinary increase in online shopping is a direct reflection of the rapid acceleration in online transactions and consumer demand in the region. This growth not only highlights the transformation the MENA region has experienced, but also signals a comprehensive lifestyle change as digital becomes the new default for everyday needs,” noted Abbondandolo.

Frequency of online shopping in the KSA

But it’s not just more shopping of the same goods. The Checkout report found that the diversity of online shopping has increased tremendously, with consumers now even turning to e-commerce for buying their garden furniture, cars, medical healthcare treatments, and cultural experiences. 

Back in 2020, the e-commerce market was much more dominated by the well-known categories of retail, electronics, beauty and personal care, and travel.

Growth in online spending UAE + Growth in online spending KSA

From Cash to Cards

As more consumers embrace the convenience and accessibility of digital shopping, cash-on-delivery continues to decline sharply. Since 2020, cash-on-delivery usage has plummeted by 60% across the region, as consumers increasingly turn to more secure and convenient digital payment methods. This trend is particularly pronounced in countries like Saudi Arabia, which has seen a 64% drop, followed closely by the UAE 53% and Egypt in 52%.

The decline of cash-on-delivery is also driven by growing trust in online transactions, with consumers feeling more comfortable using digital methods of payment. The rapid adoption of mobile wallets and card payments has been another driver, as these options offer a faster, safer, and more convenient checkout experience.

“When we step back and reflect on how cash-based much of the region was just years ago, the progress is nothing short of remarkable. This isn’t a region catching up – it’s a region leading the world in digital payments,” said Abbondandolo.

% of total MENA population who prefer to pay with cash on delivery + Decline in cash on delivery payments (2020-2025)

The report highlights how the shift is no accident. It was pushed by a bold agenda from governments, central banks and progressive regulators, with adoption made easier by a young, digitally native population that continues to embrace change at speed and at scale.

Further reading: How the region’s payments market could fare in the next decade.

The outlook

Looking ahead, the researchers forecast digital commerce to continue its upward trajectory in the MENA region. Approximately 61% of consumers plan to increase their online shopping next year, with the categories most anticipated to benefit from increased transactions being flights and hotels, food delivery and retail commerce, followed by government and public services.  

“Across every ecommerce innovation we’ve assessed in the report shaping the future of digital commerce, MENA markets consistently rank among the most forward-looking. The region will continue to see growth in digital commerce, and play a leading role on the global stage.”

“In this increasingly competitive landscape, one takeaway is clear: payments performance has become a critical differentiator. Fast, secure, and intelligent payments are foundational to commercial success – not just at the point of transaction, but across the entire customer experience. In a market where growth is driven by innovation, the businesses that thrive will be those that treat payments not as plumbing, but as a product.”