E-COMMERCE

(DIGITAL COMMERCE)
Prepared by Investment Promotion Agency Qatar

SEPTEMBER 2022
Global Trends

THE E-COMMERCE INDUSTRY HAS WITNESSED

REMARKABLE GROWTH IN THE LAST DECADE FURTHER
SPURRED ON BY THE GLOBAL COVID-19 PANDEMIC

Total worldwide e-commerce spending will reach over 7 trillion by 2025

E-commerce global sales in U.S tn (2020-24)

8 % of total retail sales 7.4 30%

6.8
7 23.6%
6.1 25%
5.5 2021 Market Size Digital buyers by 2022
6
4.9 22.5% 20%
5 21.5%
20.3%
19.0%
4 15%
3
10%
Mobile-commerce’s share in 2022 Annual growth over 2020-2030
2
5%
1
0 0%
2021 2022* 2023* 2024* 2025*
*projected
Source: Insider Intelligence, Kearney, CAREC & ADB report, Divante, Research and Markets, IPA Analysis
Global Trends

THE E-COMMERCE INDUSTRY HAS WITNESSED

REMARKABLE GROWTH IN THE LAST DECADE FURTHER
SPURRED ON BY THE GLOBAL COVID-19 PANDEMIC

Four factors are identified as the most important for long-term success Other game-changing trends are also expected to have a positive impact
in building e-commerce on e-commerce

Social Commerce Artificial Intelligence Market Places Security Crypto-Currencies Big Data Virtual Reality Augmented Reality

Social commerce is Personalization In 2020, 76% of online buyers Distributed Ledgers Mining data Novelty visual Showing shoppers
one of the fastest- through AI marketplaces grew consider data and blockchain for competitive experiences with a different
growing segments lifts sales by 10% 100% while privacy and security design advantage genuine potential perspective
and it is expected to or more department stores as top priority
nearly triple by remained flat for the factors when
2025 third year shopping online

Source: Insider Intelligence, Kearney, CAREC & ADB report, Divante, Research and Markets, IPA Analysis
 Market Opportunities

THE E-COMMERCE INDUSTRY HAS WITNESSED

REMARKABLE GROWTH IN THE LAST DECADE FURTHER
SPURRED ON BY THE GLOBAL COVID-19 PANDEMIC
E-commerce spurs investments and business Growing e-commerce sales will push for further
opportunities across sectors and sub-sectors investments in these industries

 E-commerce creates opportunities in digital payment services to

Fintech smooth purchasing process
 23.58% CAGR is expected for the fintech market from 2021 to 2025.

E-commerce relies on ICT for operations and intensification. As


 USD 654.73 billion worth of government investment in ICT by 2025
ICT e-commerce grows, more investment is needed to develop the ICT
infrastructure

Logistics & Supply  Investment and business opportunities in this space including  138 million sq.m. of additional e-commerce dedicated logistics space
Chain shipping, tracking and delivery services will be required to support e-commerce growth

Growing need for digital marketing and data analysis services to

Digital marketing 
 E-commerce businesses are planning to leverage data to personalize
increase customer base, improve brand value and understand
& data analysis customers’ needs and preferences experience and keep up with complex demand

Retail packing  Retail packaging services are a rapidly expanding business  In 2020, retail packaging was estimated to be worth USD 63.9 billion
market opportunity and is expected to reach USD 90.9 billion by 2026

Source: Insider Intelligence, Allied Market Research, Mondor Intelligence, Finances Online, Grand View Research, PwC, CBRE, IPA Analysis
Global Trends Market Opportunities

Qatar exhibits the most potential for

E-COMMERCE GROWTH IN THE

Electronics & appliances, fashion & beauty segments are expected
to lead the e-commerce growth in the region

GCC IN THE NEAR FUTURE AS

GCC e-commerce sales by segment, actual & projected (U.S $ billions)
Electronics, 5.4

CONSUMERS SHIFT ONLINE

Appliances 11.5
Fashion, 4.9
Beauty 10.6
Toys, 4.7
Hobby 8.9
2.3
Qatar e-commerce market potential is currently untapped and has the Food,
Personal Care 6.1
highest estimated growth potential in the region over the next 5 years
Furniture, 1
Home Product 1.6
Country Estimated e-commerce Projected annual growth
revenue in $ Bn(2021) rate (2021-25) Source: Tasmu Digital Valley, Kearney, EY Future Consumer Index 2025 2020

QATAR 2.0 15.6%

E-commerce in the GCC has grown rapidly since 2015
and is set to increase by almost 80% from 2021–25
UAE 7.4 10.3%

E-commerce sales in the GCC (U.S $ billions)

KSA 7.1 5.4%

+145.4%
KUWAIT 1.2 6.12%
53

$264 Average spending by online buyers in Qatar per transaction.

Highest in MENA region.
+307.5%
22

99% Qatar has the highest internet penetration globally. 5

The state has also ranked first globally in mobile speed.
2015 2020 2025
 Value Chain

From product development to fulfillment & returns

MANY BUSINESS AND INVESTMENT

OPPORTUNITIES EXIST ACROSS THE
E–COMMERCE VALUE CHAIN
Key Opportunities in Qatar

Product Development Inbound Shipping Warehousing Inventory Management

Developing consumer products Logistics, transportation, and Warehousing storage that Management of product
tailored for the region and the tracking systems services would lower costs and provide inventory and availability
local consumers opportunities to improve more choice to local consumers at storage/warehouse
delivery
 Value Chain

From product development to fulfillment & returns

MANY BUSINESS AND INVESTMENT

OPPORTUNITIES EXIST ACROSS THE
E–COMMERCE VALUE CHAIN

Market Place Payment Packing Fulfillment & returns

Developing digital platforms Fintech solutions and e-payment Packaging services for Logistics for end delivery of
and applications where opportunities to modernize acquired goods for distribution products to consumers and
consumers can search and payment systems to end consumers management of returns
acquire products

Qatar offers foreign investors
A VALUABLE AND COMPETITIVE BUSINESS CLIMATE,
WITH A VARIETY OF RESOURCES AVAILABLE
A stable and
resilient economy
◥ 4th highest GDP per capita
◥ 4.8% projected GDP growth in 2022 and
4.9% in 2023, according to the World Bank
Group
◥ Strong external and fiscal position, AA-
credit rating, according to S&P, Fitch and Aa3
from Moody’s
◥ Vision backed by investment, through
ambitious 2030 National Vision
Value Proposition
Pro-business
climate
◥ Competitive regimes, in terms of regulation,
procedures, taxation incentives, and
immigration among others
◥ Conducive business environment, 3rd in
World Bank’s Doing Business 2020 for Impact
of Tax on Business
◥ 2nd most competitive economy in the Arab
World, as per Global Competitiveness Index
◥ Availability of financial support, 4th in
financing SME’s and 5th in venture capital
availability
Vibrant knowledge eco-system
and rich culture
◥ Innovative and entrepreneurial, 1st in Arab
world in Global Entrepreneurship Index
◥ World-leading digital infrastructure, 4th in
5G Leadership Index with 99% internet
penetration
◥ Extensive International Investment
agreements, with China, Germany, France
and more
◥ 15 renowned international universities and
institutes at Qatar Foundation’s Education
City
Unparalleled market
access and connectivity
◥ 2 billion people worth $6 trillion in combined
GDP within 3000 km of Qatar
◥ Connected to over 140 international
destinations, through Qatar Airways and HIA
Hamad port, one of the largest green ports
in the world, stretching over 28.5 sq. km
 Value Proposition

Qatar has the necessary foundations to support

THE SUCCESS OF INVESTORS

IN THE E-COMMERCE INDUSTRY
Digital Logistics Young population Utilities & ready Investment in emerging
Infrastructure & Connectivity & Consumer market Infrastructure delivery technology

◥ Ranked 8th globally in ICT
innovation infrastructure
◥ Ranked 4th in 5G leadership index
◥ Microsoft cloud regional data
center is based out of Doha
◥ Ranked 2nd in the region for
logistics performance
Global connectivity through HIA,
◥ ◥
Qatar Airways Cargo & Hamad Port
◥ Submarine cable system ensuring
global connectivity
◥ 40% of the population under the
age of 30
Highest spending per digital
consumer in the MENA
◥ Government incentives
provided included land, tax
reductions, and subsidies
to utilities
◥ Free zones and warehouses
ready for e-commerce
businesses
◥ Qatar Postal Service and
Ministry of Transport and
Communications jointly
invested and developed
automated postal delivery
drones
◥ Delivery drones will
significantly benefit the
booming e-commerce in Qatar
HOW IPA QATAR
CAN HELP YOU
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connect you with the right stakeholders and resources, and support you
through the investment process to help you achieve your ambitions and
long-term success in Qatar.

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