Emerging Amazon Marketplaces: UAE and Saudi Arabia

US sellers can now expand into the Middle East through Amazon United Arab Emirates (UAE) and Kingdom of Saudi Arabia (KSA). 🚀

Amazon has released a video selling guide that presents the cliff’s notes on the logistics, language and payment structure of selling products on Amazon within the Gulf region. It also explains the opportunity that awaits sellers who would take up Amazon’s offer to join these marketplaces.

Both UAE and KSA are becoming a magnet for eCommerce businesses.

According to Boston Consulting Group and Meta Platforms, Saudi Arabia’s eCommerce market is set to reach $13.3 billion by 2025 as an increasing number of customers shop online more often now than they did pre-pandemic and as more products become accessible to large audiences, with apparel, electronics, and appliances as top sellers.

UAE’s eCommerce market is also expected to balloon to $8 billion in 2025, mainly due to customers and businesses turning to online marketplaces for their needs, according to Gulf News. Online shoppers will also keep purchasing from international eCommerce platforms (specifically Amazon’s non-UAE sites), which presents another business opportunity for US-based sellers.

Overall, being an early adopter of these emerging marketplaces can have an upside advantage as far as capturing the market early, although we know there are some barriers to entry that must be dealt with.

Luckily, the eComm giant offers the following benefits to make your launch in KSA or UAE fast and easy.

Selling on Amazon.ae (UAE) Benefits

• Amazon.ae, including all listings and communications with customers, is available in English, with the option to also have an Arabic page.
• Sell online without the need to secure a UAE eCommerce license, which means less paperwork and fees.
• Receive payments in US dollars directly to your US bank account.
• Logistics solutions include FBA.
• Gateway to five other countries: Kuwait, Oman, Bahrain, Qatar, and Jordan

Pro tip: While the language is 100% English, the option to also auto-translate your listings into Arabic is a nice feature. However, auto translating to another language doesn’t usually do the trick very well, as it doesn’t catch the right usage of words, best keywords, or colloquialisms. For this reason, I recommend hiring a translator that does custom translations for sellers using locals like Jana Krekic’s team at YLT Translations.

Selling on Amazon.sa (KSA) Benefits

• Language is 100% English, but you can auto-translate the pages into Arabic.
• FBA is available.
• No eCommerce license to set up an online store in KSA is required.
• Payments are processed in USD.

Selling on Amazon.sa (KSA) Benefits

While FBA is available in both countries, it seems that sellers would have to send inventory to FBA in Saudi Arabia and UAE separately.

Deciding Between KSA and UAE

If you can’t decide between KSA and UAE as your next market, Jana Krekic, founder of YLT Translations, who has been translating for sellers in the UAE for some time now, says Saudi Arabia doesn’t seem to be as popular a marketplace for Amazon sellers to adopt but that UAE is becoming quite popular.

This is probably because of UAE’s openness to international business. Gulf News reported that Shaikh Hamdan Bin Mohammad Bin Rashid Al Maktoum, Crown Prince of Dubai, had implemented strategies to accelerate eCommerce growth by minimizing the overall cost to operate online businesses by 20%, including the costs of storage, returned products, VAT on transportation, and customs duties.

Another reason to expand in UAE is its strategic location. According to the International Trade Administration, the country serves as a gateway to other hubs in the Gulf region, which creates lucrative opportunities and makes it an attractive market for exporters. This also explains why Amazon.ae serves as a better springboard for 5 other Arab states than Saudi Arabia.

All this into consideration, UAE is shaping up to be a pretty good marketplace opportunity for sellers.

Visit Amazon Global Selling to learn more.