Amazon: Saudi Arabia, UAE Have Fastest Growing E-Commerce

Ronaldo Mouchawar, Vice President of Amazon for the Middle East, North Africa, and Türkiye
Ronaldo Mouchawar, Vice President of Amazon for the Middle East, North Africa, and Türkiye
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Amazon: Saudi Arabia, UAE Have Fastest Growing E-Commerce

Ronaldo Mouchawar, Vice President of Amazon for the Middle East, North Africa, and Türkiye
Ronaldo Mouchawar, Vice President of Amazon for the Middle East, North Africa, and Türkiye

Ronaldo Mouchawar, Vice President of Amazon for the Middle East, North Africa, and Türkiye, noted that e-commerce in the region is evolving rapidly, with Saudi Arabia and the UAE as the fastest-growing markets, where the number of online shoppers has doubled over the past two years.

Speaking with Asharq Al-Awsat during Amazon’s participation in the eighth annual Future Investment Initiative (FII) in Riyadh, Mouchawar highlighted significant growth in regional e-commerce, which is projected to reach a market value of $260 billion by 2029, driven by accelerating digital transformation, according to Mordor Intelligence.

He explained that about 70% of the region’s population is under the age of 40, boosting the adoption of digital technologies. The region also has one of the world’s highest smartphone penetration rates, with internet access at 99%.

Features like “Buy Now, Pay Later” and digital wallets are making online shopping more convenient. Generative AI is particularly enhancing customer experience and driving business growth, with PwC forecasting that AI will contribute $320 billion to the Middle East economy by 2030, equating to around 11% of the region’s GDP.

Mouchawar emphasized that fintech is driving major shifts in digital commerce by enabling flexible, easy-to-use payment options that enhance customer convenience. He added that governments in the Middle East and North Africa are supporting digital growth with large-scale investments.

He also discussed initiatives like Saudi Arabia’s Vision 2030, which is accelerating the adoption of smart technology and supporting small and medium enterprises (SMEs) to increase their contribution to GDP to 35% by the decade’s end.

Mouchawar shared Amazon’s collaboration with Saudi Arabia’s General Authority for Small and Medium Enterprises (Monsha’at) to empower 40,000 SMEs by 2025. Last year, Amazon launched the Amazon Academy in Saudi Arabia, aligning with Vision 2030’s Human Capability Development Program.

He noted that around 43% of all startup funding in the region comes from Saudi Arabia, reflecting the promising opportunities for startups and tech entrepreneurs. By the end of 2023, the number of SMEs in Saudi Arabia surpassed 1.3 million, marking a 200% increase since the launch of Vision 2030. In 2022, Amazon partnered with Monsha’at to host 40,000 SMEs on its platform by 2025.

According to Mouchawar, Saudi Arabia is continuously investing in strengthening its digital infrastructure and embracing technologies like AI and big data analytics, which are improving customer experience, enhancing supply chains, and advancing logistics infrastructure. Additionally, the government announced plans this year for a $40 billion investment fund to support AI development.



Bank of England Cuts Main Interest Rate by a Quarter-point to 4.75%

Bank of England Deputy Governor for Monetary Policy Clare Lombardelli, Bank of England Governor Andrew Bailey, The Bank of England's Head of Media and Stakeholder Engagement Katie Martin and Deputy Governor, Markets and Banking, Dave Ramsden hold the central bank's Monetary Policy Report press conference at the Bank of England, in London, on November 7, 2024. HENRY NICHOLLS/Pool via REUTERS
Bank of England Deputy Governor for Monetary Policy Clare Lombardelli, Bank of England Governor Andrew Bailey, The Bank of England's Head of Media and Stakeholder Engagement Katie Martin and Deputy Governor, Markets and Banking, Dave Ramsden hold the central bank's Monetary Policy Report press conference at the Bank of England, in London, on November 7, 2024. HENRY NICHOLLS/Pool via REUTERS
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Bank of England Cuts Main Interest Rate by a Quarter-point to 4.75%

Bank of England Deputy Governor for Monetary Policy Clare Lombardelli, Bank of England Governor Andrew Bailey, The Bank of England's Head of Media and Stakeholder Engagement Katie Martin and Deputy Governor, Markets and Banking, Dave Ramsden hold the central bank's Monetary Policy Report press conference at the Bank of England, in London, on November 7, 2024. HENRY NICHOLLS/Pool via REUTERS
Bank of England Deputy Governor for Monetary Policy Clare Lombardelli, Bank of England Governor Andrew Bailey, The Bank of England's Head of Media and Stakeholder Engagement Katie Martin and Deputy Governor, Markets and Banking, Dave Ramsden hold the central bank's Monetary Policy Report press conference at the Bank of England, in London, on November 7, 2024. HENRY NICHOLLS/Pool via REUTERS

The Bank of England cut its main interest rate by a quarter of a percentage point on Thursday after inflation across the UK fell below its target rate of 2%.
The bank said its rate-setting panel lowered the benchmark rate to 4.75% — its second cut in three months — though its governor Andrew Bailey cautioned that interest rates would not be falling too fast over coming months.
“We need to make sure inflation stays close to target, so we can’t cut interest rates too quickly or by too much,” he said. “But if the economy evolves as we expect it’s likely that interest rates will continue to fall gradually from here.”
In the year to September, UK inflation stood at 1.7%, its lowest level since April 2021 and below the central bank’s target rate of 2%, The Associated Press reported.
Central banks worldwide dramatically increased borrowing costs from near zero during the coronavirus pandemic when prices started to shoot up, first as a result of supply chain issues built up and then because of Russia’s full-scale invasion of Ukraine which pushed up energy costs.
As inflation rates have recently fallen from multi-decade highs, the central banks have started cutting interest rates.
Economists have warned that worries about the future path of prices following last week's tax-raising budget from the new Labour government and the economic impact of US President-elect Donald Trump may limit the number of cuts next year.
The decision comes a week after Treasury chief Rachel Reeves announced around 70 billion pounds ($90 billion) of extra spending, funded through increased business taxes and borrowing. Economists think that the splurge, coupled with the prospect of businesses cushioning the tax hikes by raising prices, could lead to higher inflation next year.
The rate decision also comes a day after Trump was declared the winner of the US presidential election. He has indicated that he will cut taxes and introduce tariffs on certain imported goods when he returns to the White House in January. Both policies have the potential to be inflationary both in the US and globally, thereby prompting Bank of England policymakers to keep interest rates higher than initially planned.