The Gulf Cooperation Council is a regional intergovernmental political and economic alliance in the Middle East. The member states are Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates. E-commerce in the Gulf Cooperation Council has developed rapidly.
2015 e-commerce revenue Gulf Cooperation Council 5.3 billion US dollars, only 0.4% of GDP. By 2020, revenue has quadrupled to reach US$21.6 billion. This is the statement of Kearney, an American management consulting company with operations in more than 40 countries.
In addition, Kearney expects GCC e-commerce sales to accelerate, reaching US$52 billion per year by 2025. Kearney attributed the expected growth to the Covid-driven shift in online purchases and digital-savvy consumers (mainly millennials (25-40 years old, approximately), which account for about 45% of the population. Kearney said again, 60% Millennials of the GCC are shopping online.
Kearney expects the growth of e-commerce in the Gulf Cooperation Council to vary by market segment.
Despite the growth, compared with the leading countries, the GCC e-commerce scale is relatively small. eMarketer predicts that global e-commerce sales will reach US$4.9 trillion in 2021. China is still the dominant economy in e-commerce, accounting for about 57% of total sales. The Gulf Cooperation Council estimates that the total amount in 2021 will be 29 billion U.S. dollars, accounting for less than 1%.