Kuwait’s e-commerce growth surpasses $1.61 billion in 2024
The country’s e-commerce volume exceeded 500 million dinars, with a growth rate of 11.33% from 2018 to 2023, and is expected to rise to 12.57% annually from 2024 to 2028.
• Kuwait, one of the fastest-growing e-commerce markets, has seen its expansion driven by robust digital infrastructure and became the first country to adopt 5G technology in 2024, further accelerating its e-commerce growth.
Qusai Al Shatti, information technology expert and Director General of the Central Agency for Information Technology, stated that Kuwait’s e-commerce volume is expected to reach $1.61 billion this year, exceeding 500 million dinars, according to a report by the Consulting and Research Centre Technavio.
In a special statement to Al-Anbaa newspaper, Al-Shatiadded that the e-commerce growth rate in Kuwait from 2018 to 2023 reached 11.33%, and he expects the compound annual growth rate of e-commerce in Kuwait to rise to 12.57% between 2024 and 2028. These rates place Kuwait among the fastest-growing markets in e-commerce.
He pointed out that these figures are based on the volume of trade in sectors such as fashion, clothing, electronics, beauty and personal care products, toys and children’s supplies, food, meals, and beverages. He also noted that the figures include orders sent by mail or delivery services, as well as those paid electronically or upon delivery.
Digital infrastructure is a key factor in Kuwait’s e-commerce growth
Al-Shati said that the quality of digital infrastructure is a key factor in the growth of e-commerce in Kuwait, as it serves as the main enabler for this trade and plays a crucial role in its expansion. This is especially significant since more than 99% of Kuwait’s population has access to the internet, with wide and fast capacities at competitive prices, allowing for easy and practical usage.
He added that smartphones are widely accessible to all residents, regardless of their income or standard of living. Kuwait became the first country in the world to adopt 5G telecommunications technology in the current year, according to data from the International Telecommunication Union, maintaining this position for the second consecutive year. Therefore, Kuwait’s infrastructure has become a major factor in the growth of e-commerce.
In the United States, many retailers, such as Sears, have closed their stores due to bankruptcy, and the same trend has occurred in the United Kingdom with Debenhams. Additionally, many retailers have reduced the number of their branches, all due to consumers’ shift towards e-commerce and online shopping.
He predicted that e-commerce and online shopping will completely replace shopping malls and physical stores in the near future.
According to a report by the Ipsos Centre for Studies (IPSOS) on e-commerce in Kuwait, 53% of respondents reported shopping online, while 60% stated that the in-store shopping experience cannot be fully replaced by e-shopping. However, 39% of the same group indicated that most of their future shopping will be online. This trend is not only seen in Kuwait or the region but also in many countries worldwide.
Global e-commerce volume
Al-Shati explained that, according to a report by the EMarketer Studies Centre, global e-commerce volume is expected to reach $6 trillion by the end of this year. China alone accounted for $3 trillion of global e-commerce in 2023, with the Chinese market representing 47% of total global retail.
The same report states that the total global retail market volume is $29.7 trillion, with e-commerce accounting for 19.5%. This indicates that e-commerce still has significant room for growth globally, while traditional shopping remains the dominant sales channel in the retail market.
When asked about the reasons for changing consumer behavior and the growing demand for e-shopping, AlShati pointed out that the development and increased use of electronic payment methods have led the consumer segment in Kuwait to shift towards this type of shopping. Key factors include saving time, ease and practicality, a wider variety of products, promotions, digital marketing, and price preferences.
He added that the Technavio Centre identifies several other reasons, most notably: the development of global trade platforms aimed at improving and simplifying the e-shopping experience, the ease of sending and receiving products, the reliance of international retail companies on multiple sales channels—known as the Omnichannelconcept—and the rise of marketing through social media platforms.
