As emerging technologies shape the next wave of economic transformation in the Middle East and North Africa, local markets are consistently ranked among the most forward-leaning in both technology adoption and appetite, according to Checkout.com’s fifth annual MENA report.
The State of Digital Commerce in MENA 2025 – Trends that matter: Insights into changing consumer behaviour presents a unique perspective on how the bold moves by central banks, progressive regulators, innovative fintechs and merchants, and a digital-native population have come together to embrace change at both speed and scale. The report offers invaluable insights for merchants, policymakers, and stakeholders aiming to capitalize on the opportunities presented by the region’s digital evolution.
Over the past five years, the MENA region has experienced a remarkable surge in online shopping, with a reported 139% increase in daily transactions since 2020. This trend is further highlighted by Checkout.com’s total processing volumes in MENA, which have skyrocketed by an impressive 626% over the same period, and a 78% YOY growth. Together, these figures underscore a broader lifestyle transformation in the region, where digital platforms are increasingly becoming the default for consumers.
Beyond daily shopping, more consumers are turning to digital platforms for their routine purchases, with food delivery leading the way as the top-performing vertical capturing a massive 47% share of online purchases, while clothing and fashion came in second with a 38% of online spending, and the third place seeing a close tie at 34% for both beauty products and electronics. This highlights just how diverse and dynamic the MENA ecommerce landscape has become. Not only in volume but in the breadth of goods and services consumers are now confident buying online.
This shift toward digital convenience is not only reflected in consumer spending habits but also in how people and businesses send and receive money. In the UAE, for example, the adoption of Account Funding Transactions (AFTs) has seen a staggering 388% year-on-year growth, underscoring the nation’s rapid transition to real-time, digital payouts. This growth signals a significant evolution in the region’s financial infrastructure—fueled by demand for instant, secure, and flexible payment experiences. It also demonstrates how digital commerce is expanding beyond traditional retail to encompass broader economic interactions, from salary disbursements to gig economy payments and peer-to-peer transfers.
Furthermore, approximately 61% of MENA 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.
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.
Remo Giovanni Abbondandolo, General Manager, MENA at Checkout.com, notes: “Across every innovation shaping the future of ecommerce, MENA markets consistently rank among the most forward-looking. This isn’t a region catching up, it’s a region leading the world. This progress is not the result of chance. It is why this year’s edition of our MENA digital commerce report goes further, taking a deeper look at the impact of emerging technologies shaping the next wave of transformation, and benchmarking consumer attitudes in MENA countries against other global markets.”
The forefront of fintech and AI
The report notes that the MENA region stands out as a mature geography with widespread adoption of digital wallets and a growing market for investment apps, alongside developing peer-to-peer payment and digital insurance solutions. 43% of MENA consumers are now using apps or digital wallets to send money at least once a week, and 62% are using fintech platforms for investment and wealth management.
In parallel, AI is being deeply woven into the region’s shopping experience. Nearly half (45%) of shoppers in MENA have already used Generative Chat sites to assist them in their online shopping, while more than half (53%) have already used Visual Search AI tools for online shopping. From virtual try-ons to AI-powered chatbots, the report cites that consumers in these markets are more likely to engage with intelligent shopping tools than shoppers in any other region.
Winning customers online
Instant access to information has transformed consumer behaviour in-store, too. One in three (37%) MENA consumers say they shop for better options online even while browsing in-store. This means an impulse buy is no longer in the bag. In fact, it might be an “impulse inspiration” to look online. Retailers are adapting by embedding digital tools into physical stores, from QR codes for discounts to product previews powered by augmented reality.
In the digital economy, trust travels through digital channels. Consumers are just as likely to trust a brand based on peer reviews and third-party feedback as through direct familiarity and traditional brand recognition. “Social proof” and digital word of mouth have become dominant forces in shaping brand perceptions, with review platforms acting as modern consumer forums that influence purchasing decisions across industries.
In recent years, online fraud – particularly scams involving AI and deepfake technology – has become a more pressing concern across MENA. The report notes that as countries embrace digital commerce, the financial ecosystem is evolving in ways that bring both increased opportunity and exposure. Since 2023, the number of MENA consumers who report being victims of online fraud has risen from 33% to 49% today. However, advanced protective measures involving machine learning, behavioural biometrics, and real-time anomaly detection are expected to optimize both security and performance.
“In this increasingly competitive landscape, payment performance has become a critical differentiator,” contends Abbondandolo. “Fast, secure, and intelligent payments are foundational to commercial success – not just at the point of transaction, but across the entire customer experience.”
