E-Commerce reaches new highs in the Middle East

The world's leading payment association reported that increasing numbers of retailers are responding to a growing consumer demand to shop online.

US$20 million worth of sales were made at online retailers in the GCC in the first quarter of 2005, an increase of approximately 600 per cent over the same period last year. Retailers and other organisations in all the GCC countries experienced similar increases in online sales however the UAE remained the clear leader in the Middle East with merchants in the country attracting more than 85 per cent of both the total number and value of regional transactions.

The total number of transactions made at UAE merchants rose five fold in the same period. Saudi Arabia, Kuwait, Qatar, and Bahrain also experienced as much as fifteen fold growth in the number of transactions.

Kamran Siddiqi, General Manager, Middle East, Visa International, said, 'The rising number of transactions is an indication of the growing comfort level of Visa cardholders have when they make online payments. Additionally, merchants are benefiting from the use of our e-security programme, 'Verified by Visa'. The most popular way to pay online is using a Visa card and we are committed to providing a secure online payment environment for cardholders when they shop from the comfort of their home or office at anytime.'

Siddiqi lauded the role of Middle East governments in growing e-commerce initiatives in the region. Various governmental departments across the GCC are adopting electronic systems to automate their operations. 'We are very pleased to see the rapid growth in electronic payment systems among GCC public sectors,' said Siddiqi. 'These initiatives not only help to introduce greater efficiency and better reporting standards but also help to support economic growth in local economies.'

Global research shows that a 10 per cent increase in electronic payments in a country can generate a 0.5 per cent increase in over all consumer spending.