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The Rise of Social & Mobile Commerce in the Middle East
Opportunity or Minefield for Global Brands?

Introduction: A New Digital Reality 

The digital commerce landscape across the Middle East is undergoing a profound transformation. By 2028, e-commerce in the region is projected to exceed $57 billion, rising sharply from $37 billion in 2024 (Statista). 

40%
or more of the Saudi population uses TikTok
Mobile-first consumers are shopping directly from their favorite creators, livestreams, and stories.
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    From TikTok Shop and Instagram Shopping to Snapchat’s in-app experiences, the lines between entertainment and transactions have blurred. In countries like the UAE, Saudi Arabia, Qatar, Bahrain, and Oman, mobile-first consumers are shopping directly from their favorite creators, livestreams, and stories — redefining how brands build trust and convert audiences. 

    At OAKODE, we call this shift Commerce 3.0: where storytelling, community, and social engagement directly fuel sales. But while this new wave opens massive opportunity, it also introduces operational, cultural, and payment challenges that global brands often underestimate. 

    Regional Snapshot: The Social & Mobile Commerce Surge 

    UAE & Saudi Arabia: 
    According to Data Report 2024, more than 40% of Saudi internet users are active on TikTok monthly — making it one of the most influential commerce platforms in the region. Meanwhile, the UAE boasts 99% smartphone penetration, meaning mobile-first isn’t optional — it’s the default expectation. 

    Social commerce is thriving thanks to frictionless mobile payments. Platforms like STC Pay, Payit, and Careem Pay have accelerated digital wallet adoption, pushing both nations closer to a cashless ecosystem. 

    Qatar, Bahrain & Oman: 
    While smaller in population, these markets show strong digital readiness and high per-capita smartphone usage. 

    • In Qatar, over 96% of the population uses mobile internet, and live shopping integrations on TikTok and Instagram are gaining momentum (Hootsuite 2024). 
    • Bahrain’s youth-driven digital economy is fueling the rise of influencer-led microbrands, particularly in beauty and lifestyle categories. 
    • Oman, supported by e-payment systems like Thaw ani Pay and Oman Net, is seeing a steady shift from browsing to buying on mobile — signaling clear potential for lifestyle and wellness brands. 

    The Double-Edged Sword: Growth vs. Complexity 

    Despite strong consumer demand, many global brands struggle to navigate regional nuances that can make or break success. 

    1. Payment Preferences

    While digital wallets are growing, credit card and cash-on-delivery (COD) coexist in markets like Saudi Arabia and Oman. This mix creates challenges around refunds, fraud, and cash flow — issues that can erode margins quickly. 

    1. Logistics & Returns

    Delivery speed and reliability remain key success factors. In the UAE, last-mile infrastructure is world-class. But in Bahrain, Oman, and certain parts of Saudi Arabia, fragmented logistics networks can cause delays or drive-up fulfillment costs. 

    1. Competitive Landscape

    Social platforms have lowered entry barriers. Across TikTok and Instagram, micro-entrepreneurs and local creators are launching niche brands daily — offering hyper-localized experiences that global brands often overlook. Competing with these agile players requires local insight and authenticity. 

    1. Cultural & Demographic Diversity

    The Middle East is far from monolithic. UAE and Qatar consumers gravitate toward premium positioning, Bahrain prefers experiential and youth-driven content, while Oman and Saudi audiences value family-oriented, community-led messaging. 
    Understanding these cultural subtleties is essential for performance-driven campaigns. 

    Case in Point: Social Commerce Done Right 

    A global beauty brand recently launched its TikTok Shop presence in Saudi Arabia and the UAE. Instead of importing Western influencer tactics, they partnered with local creators and Arabic-speaking hosts for live shopping sessions. 

    The result? A 5x faster adoption rate compared to traditional e-commerce campaigns (WARC 2024). Beyond sales, their localized storytelling built lasting brand affinity — proving that success lies in cultural alignment, not just platform presence. 

    In Qatar and Bahrain, similar models are emerging, where niche wellness and skincare brands are thriving through micro-influencer live sessions that emphasize community trust and real-time engagement. 

    At OAKODE, we guide brands through every stage — from market entry to sustainable sales growth — ensuring each move aligns with local behavior and business viability. 

    Our integrated approach includes: 

    • Market Entry Strategy: Identifying high-opportunity markets (UAE, Saudi Arabia, Qatar, Bahrain, Oman) based on category potential, audience demand, and regulatory ease. 
    • Localized Platform Setup: Building optimized storefronts on Shopify, TikTok Shop, and Instagram Shopping, tailored to local languages, currencies, and checkout experiences. 
    • Payment Optimization: Reducing reliance on COD by integrating trusted regional wallets and flexible payment methods. 
    • Fulfillment Partnerships: Collaborating with top-tier logistics providers to streamline last-mile delivery and minimize returns. 
    • Creator-Led Campaigns: Deploying authentic influencer and live-commerce strategies that convert views into transactions. 

     

    The Bottom Line: Opportunity Favors the Prepared 

    The rise of social and mobile commerce is rewriting the rules of engagement across the Middle East. For global brands, the potential is undeniable — a young, connected audience ready to discover and purchase directly from social platforms. 

    But with opportunity comes responsibility: to localize authentically, manage operations efficiently, and adapt to each market’s digital maturity. 

    At OAKODE, we help global brands go beyond entry — to thrive, scale, and build trust in one of the world’s fastest-evolving commerce frontiers. 

    👉 If your brand is ready to expand, now is the moment. With the right strategy and local partnership, your success story can start where others hesitate — across the Middle East’s new social shopping frontier.