An article by Vera Modenova, COO at Flowwow

E-commerce in the Middle East and North Africa (MENA) region is experiencing rapid growth, projected to reach nearly $50 billion by 2028. New technologies change how online retail works, creating both new opportunities and some challenges for businesses. In this dynamic environment, adaptability is crucial. In this article, Vera Modenova, COO at Flowwow gifting marketplace, shares her ideas on what to expect in the MENA e-commerce market in 2025.

A personalised approach fueled by AI

AI makes shopping feel like it’s been made just for you. Lots of brands are using innovative algorithms to analyse large amounts of data, from browsing history and purchase behaviour to cultural preferences, thus adapting their marketing and product strategies, offering new personalised features, constantly improving support, and creating unique experiences.

Voice commerce is where AI is in high demand, particularly in the MENA market, where the diverse Arabic dialects are urgent. Natural language processing (NLP) can be trained to understand the differences between the dialect and further empower platforms to offer voice-activated shopping experiences. Thus, platforms are getting more adapted to their consumer’s needs, offering inclusive and personalised shopping journeys, making them seen more than ever.

Let’s look at a recent innovation from Yango: the Yasmina smart speaker. Recognising the limitations of existing platforms like Amazon Alexa, Yango created their own AI assistant for Arabic-speaking audiences. They trained it to understand multiple Arabic dialects and respond in a culturally relevant manner. Yasmina can even detect who is speaking to it and adapt language to this user (like, simple vocabulary and avoiding inappropriate words when talking to a child), thus providing a truly unique voice-activated experience. 

Shopping via social media

Social media has played a pivotal role in shaping online shopping in the MENA region. TikTok, Pinterest, Instagram, and Snapchat, with their new features like shoppable posts, in-app shopfronts, product tagging, and livestream shopping events, offer users to find and even buy  something special all while scrolling their social media feeds. With 90% of consumers prioritising authenticity when choosing where to buy and which brands to support, brands are getting more and more interested in user-generated content (UGC) and collaborations with bloggers. Consumers often place high trust in, and are more likely to purchase from, brands that they meet in genuine content shared by both influential bloggers and everyday users on social media platforms. 

Connecting with your audience on a cultural level is also very important when growing your brand online. It’s all about the proper localisation of your product: to hit and feel the cultural nuances, needs, pain points, and preferences, as well as the audience capabilities. Special campaigns around events like Ramadan and National Days, rather than solely focusing on globally recognised holidays like Christmas and Valentine’s Day, allow to show respect for the heritage, build more sincere connections between brands and their customers in the MENA region, and grow online sales. For example, many brands in the UAE turn to special campaigns (especially online) during Ramadan, emphasising the power of togetherness, bonding, and empowering locals through innovative initiatives. Think campaigns from the holy month of 2024: Aldo’s ‘Everyone’s Invited’, Flowwow’s ‘Ramadan Moments: Family Card Game’, Snap’s AR makeover from Snapchat, ‘Doing Good Deeds’ from NBK, to name a few.

Market adaptation for diverse generations 

Gen Z and generation Alpha are shaping the online landscape with their tech-savvy habits. They are visually driven and crave immersive, interactive experiences, particularly of the short format. Here comes TikTok, Instagram with Reels, and YouTube with shorts.

Forget traditional ads; the Gen Alpha are drawn to interactive content like augmented reality (AR) filters, gamified ads, and virtual worlds. Shared values matter deeply to these generations when making brand decisions. Remember the following words: sustainability, inclusivity, and ethical practices. Brands that authentically align with these values will win their trust and loyalty. 

Diversified Payments

MENA e-commerce is all about making it easier for consumers to pay online with one-click biometric options and secure digital wallets. Buy Now, Pay Later (BNPL) solutions, like Tabby, Valu and Tamara, are also blooming, offering interest-free installments, flexible payment schedules that cater to diverse financial needs, and a partnership with a wide range of online and offline retailers. For instance, Tabby’s user-friendly platform, transparency about their fees, and flexible payment options increase customer satisfaction and loyalty, seeing a 40% rate in repeat business. Its success encourages other BNPL providers to enter the MENA market, increasing competition and driving further innovation in the fintech sector. 

Crypto payments are also getting more and more popular, proving the region's interest in blockchain and cryptocurrency investments. 

Metaverse marketing

Metamarketing is here, and brands are now connecting with younger paying audiences like Gen Z and Millennials in the online world.  Creating special ad strategies for these ecosystems and offering immersive experiences helps brands to stand out from the competition, engage new audiences, and experience the growth of sales. In 2023 alone, Roblox reported over 240 brand integrations, with player interaction times increasing monthly. 

Metamarketing, with its ongoing engagement, creates more immersive and personalised connections via immersive product launches and virtual spaces that reflect brand values. Combining metamarketing with AI tools, businesses can track user behaviour, enabling hyper-personalised recommendations, customised in-game items, and exclusive virtual events. For instance, brands are now designing virtual spaces that adapt to the user's personal preferences, creating truly unique and meaningful interactions.

Businesses that experiment with trendy solutions and innovations in order to show their users how much they care are sure to thrive in the dynamic MENA e-commerce market.