Middle East Market: The Core Link of the Belt and Road Initiative and the Opportunities for Cross-border E-commerce

The Middle East is the core link of the "Belt and Road" plan, and the cross-border e-commerce market is rapidly expanding.

Many Chinese players have entered this vast desert land: Shein, Temu, Kuaishou, TikTok, and so on.

How big is the potential of the Middle East market? Let's explore!

Market potential: High growth rate, low competition.

The Middle East region has a large population, with young consumers as the main force. The total population is 454 million, and over 200 million potential consumers are curious about new things. In particular, the Gulf Cooperation Council (GCC), including the United Arab Emirates, Saudi Arabia, Qatar, Kuwait, Oman, and Bahrain, is the wealthiest emerging market in the Middle East. The cross-border e-commerce market in the GCC maintains a growth rate of 33%, driven by the strong demand from the people of the Middle East for cross-border products. It is estimated that by 2025, the size of the Middle East e-commerce consumer market will reach $50 billion, with a growth rate of 110%, providing huge development opportunities for Chinese sellers.

Purchasing power: Middle Eastern consumers have strong purchasing power.

Middle Eastern consumers have strong purchasing power. The per capita GDP of the six Gulf countries in the Middle East ranges from $23,000 to $84,000, which is typical of high-income individuals. The average order value in the Middle East e-commerce market is as high as $150, indicating higher GMV and profit margins. Due to climate reasons and local religious and cultural influences, people in the Middle East prefer to shop online at home, which further drives the development of the e-commerce market in the region.

Cross-border e-commerce: Independent websites are more suitable for entry.

The Middle East is an important import market for Chinese goods, with China's share accounting for 15.36%. E-commerce platforms in the Middle East have sprung up like mushrooms, but Middle Eastern consumers have a unique enthusiasm for brands and prefer to obtain branded products through independent websites. Compared to opening stores on large e-commerce platforms, independent websites allow sellers to operate more flexibly, including brand promotion, pricing strategies, and marketing activities. In addition, sellers can better control customer data, laying the foundation for subsequent customer relationship management and precision marketing.

Success Cases

Some Chinese sellers have already successfully launched independent station business in the Middle East. For example, the independent station hibobi, a mother and baby brand with an annual income of nearly $50 million, opened a chain store in Saudi Arabia in 2022. Anker Innovations, a cross-border leader, has also achieved significant success in the Middle East, with the highest growth rate in the region at 35.7% in the 2022 financial report.

The Middle East is a key link in the Belt and Road Initiative, and the cross-border e-commerce market is expanding rapidly. The Middle East has a large young population and strong purchasing power, making it an ideal choice for Chinese sellers to enter the Middle East market through independent stations. The potential of the Middle East market is infinite, waiting for visionary sellers to seize the dividends of this mysterious blue ocean by building independent stations.