A look at the network of logistics that are driving the Middle East’s exponential ecommerce growth
The Middle East is the world leader in logistics development, with some of the most urbanized countries in the world such as the UAE, Kuwait and Qatar, all featuring in the world’s 30 most urban countries. Most online shoppers, and indeed most of the region’s population reside in Urban areas. Some things to consider when delivering goods across borders into the Middle East:
- The urban areas of Middle Eastern countries are home to some of the most advanced infrastructure and logistics in the world.
- Governments now see ecommerce as a huge opportunity for the economy and are investing heavily in the development of further infrastructure to cater to more rural areas. Although the larger percentage of the population enjoys access to world class logistics infrastructure, this will improve delivery to the smaller percentage of the population that lives outside the cities.
- Saudi Arabia has developed and installed a nation-wide delivery system that is geo-code based and state of the art.
- Saudi Arabia VAT is 15%. The rest of the countries have 5% duty rate (almost) across the board. Kuwait and Qatar have not implemented VAT.
- Many regions see a trend in the “click-and-collect” delivery option, where online shoppers purchase online and pick up the goods in-store or at a convenient pick-up point.