Middle East Digital Consumer Report

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Middle East and North Africa Digital Consumer Report

Commissioned by Econsultancy and conducted by Real Opinions

Middle East and North Africa Digital Consumer Report Commissioned by Econsultancy and conducted by Real Opinions

Econsultancy London

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London EC1M 3LN

United Kingdom

Telephone:

+44 (0)20 7269 1450

http://econsultancy.com

[email protected]

Econsultancy New York

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New York, NY 10003

United States

Telephone:

+1 212 699 3626

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reproduced or transmitted in any form or by any means,

electronic or mechanical, including photocopy, recording

or any information storage and retrieval system, without

prior permission in writing from the publisher.

Copyright © Econsultancy.com Ltd 2011

Published October 2011

Middle East and North Africa Digital Consumer Report - Commissioned by Econsultancy and conducted by Real Opinions

All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storage

and retrieval system, without prior permission in writing from the publisher. Copyright © Econsultancy.com Ltd 2011

Contents

1. Executive Summary and Highlights ................................ 1

2. About Econsultancy ......................................................... 4

3. About Real Opinions ........................................................ 5

4. Methodology and sample ................................................. 6

5. Findings ........................................................................... 7

5.1. Internet usage .............................................................................. 7

5.1.1. Use of the internet .......................................................................................... 7

5.1.2. Time spent online ......................................................................................... 11

5.1.3. Location of internet broadband .................................................................. 12

5.2. Smartphones .............................................................................. 14

5.2.1. Internet-enabled smartphones ................................................................... 14

5.2.2. Activities carried out using smartphones ................................................... 17

5.3. Online purchases ....................................................................... 20

5.3.1. Use of the internet for researching products ............................................. 20

5.3.2. Purchasing products and services online ................................................... 22

5.3.3. Barriers preventing online purchase .......................................................... 24

5.3.4. Types of products purchased online ........................................................... 26

5.4. Payment cards ........................................................................... 30

5.4.1. Ownership of payment cards .......................................................................30

5.4.2. Use of payment cards for online purchases ................................................ 32

5.4.3. Consumers considering payment cards for online purchases ................... 34

5.5. Social media ............................................................................... 35

5.5.1. Use of social media websites ....................................................................... 35

5.5.2. Adding comments in online discussions .................................................... 39

5.5.3. Ratings and reviews ..................................................................................... 41

5.5.4. Liking brands on Facebook ......................................................................... 42

5.5.5. Following brands on Twitter ....................................................................... 44

5.6. Search ........................................................................................ 45

5.6.1. Use of search engines ................................................................................... 45

5.6.2. Language for search ..................................................................................... 47

5.6.3. Sponsored listings ........................................................................................ 49

5.7. Email ........................................................................................... 51

5.7.1. Subscribing to email newsletters ................................................................ 51

5.7.2. Purchases resulting from email newsletters ............................................... 52

6. Respondent profiles ....................................................... 53

6.1. Gender ....................................................................................... 53

6.2. Age ............................................................................................. 53

Middle East and North Africa Digital Consumer Report - Commissioned by Econsultancy and conducted by Real Opinions

All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storage

and retrieval system, without prior permission in writing from the publisher. Copyright © Econsultancy.com Ltd 2011

6.3. Geographic location .................................................................. 54

Middle East and North Africa Digital Consumer Report - Commissioned by Econsultancy and conducted by Real Opinions Page 1

All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information

storage and retrieval system, without prior permission in writing from the publisher. Copyright © Econsultancy.com Ltd 2011

1. Executive Summary and Highlights The Middle East Digital Consumer Report is based on a survey (commissioned by

Econsultancy and conducted by Real Opinions) of more than 2,000 consumers, across a range of

regions across the Middle East, including North Africa, the Levant and the GCC. Respondents

came from the Real Opinions online panel across the Middle East from a pool of over 100,000

internet users.

The report looks at internet usage in the region, including the types of products and services

purchased by consumers online. The report also examines in detail how consumers use a wide

range of online channels, including mobile, social media, search and email.

The survey findings cover the whole of the Middle East and are broken down for different regions.

Certain questions are split out further for Saudi Arabia and the UAE. The results show that

cultural, demographic and population differences between Middle Eastern countries can have far-

reaching consequences for marketers in this region.

Social networking is the most popular online activity across the Middle East with 88% of

consumers reporting they use the internet for this daily.

– In the Gulf states, email is the most frequent activity undertaken on the internet, with 87%

reporting they use email daily. Some 80% undertake social networking daily.

Typically, internet users in the Middle East spend more than two hours online every day.

More than a third of respondents (38%) report spending between two and five hours online,

while another 34% spend more than five hours online daily.

Facebook is overwhelmingly the most popular social media site in the Middle East, with some

98% of respondents stating they use the site.

– Over three-quarters of respondents (77%) say they have „liked‟ a brand on Facebook.

Slightly more consumers in the Levant region (82%) have „liked‟ brands on Facebook.

Consumers are using the internet both at home and work. While the majority have internet

broadband access at home, the proportion of respondents with internet at work varies

significantly by country. The UAE has a strong reputation for business and consequently has 69%

of respondents with broadband access at work, far higher than in other parts of the Middle East.

The majority of consumers (86%) in this survey typically have internet broadband access at

home. Some 35% also have broadband at work.

The report looks at smartphone ownership, indicating that Nokia is the most popular handset

manufacturer in this region.

Some 44% of consumers in the Middle East indicated that they have a Nokia internet-enabled

smartphone.

Some 35% of respondents in the Emirates own a BlackBerry, far higher than for the Middle

East overall, where only 11% own a BlackBerry.

The research also examines e-commerce in the region, looking at how many consumers purchase

online or use the internet to research products. While a third of consumers occasionally or

regularly purchase products online, far more respondents said they use the internet for research

or looking for planned purchases.

Over a quarter of consumers (27%) occasionally purchase products online, while only 6%

make regular purchases.

Almost half of consumers (48%) say they occasionally use the internet either for looking for

products or for researching planned purchases. Under a fifth (18%) regularly use the internet

for researching purchases.




Although the digital industry is rapidly growing in the Middle East, there are still many barriers

preventing consumers from buying online. A combination of different factors is holding back

customers, although the main barriers relate to payment.

The lack of trust in payments cited by 43% of respondents in this survey. The second most

cited issue is unsuitable payment options, mentioned by over a third (36%) of respondents.

Some 27% report that there is a lack of local online retailers. However, e-commerce is rapidly

developing in the region and this will be directly addressed as more companies begin to offer

online transactions.

Consumers are buying a wide range of products online. While some products such as flights and

hotels are purchased widely across the whole Middle East, the purchase of other products varies

by country. The types of products purchased can be affected by the culture and demographic

population of individual countries within MENA.

Of the consumers who have purchased products online, almost half (47%) have bought flights

online and over a third (38%) have purchased a hotel reservation.

A far higher proportion of respondents in the UAE are buying products online compared to

the rest of the Middle East.

Just under half of UAE online consumers (49%) pay their credit card bills online, compared to

just 9% of Saudi consumers. Only 25% of Saudi respondents pay their utility bills online,

compared to 52% of respondents in the UAE.

The difference in language used for search varies widely in the Middle East. Consumers across the

Middle East use both the English and Arabic version of Google. In the Emirates, which has a large

expatriate population, the majority of searches are conducted in English.

Google is the most commonly used search engine in the Middle East, with 61% of respondents

using the English version of the site. Over half (58%) are using the Arabic version of Google.

The vast majority of respondents in the UAE (92%) use the English version of Google and only

23% use the Arabic version of Google.

Saudi Arabia is very different; only 45% use the English version of Google, while 82% use the

Arabic version.

The report‟s findings show that consumer behaviour varies widely across the Middle East. For

marketers in this region, it‟s highly important to understand the differences between different

countries and adapt and target campaigns accordingly.

Other relevant Econsultancy reports, training and events

Reports

The State of Digital in the Middle East and North Africa

http://econsultancy.com /reports/the-state-of-digital-in-mena

Middle East and North Africa: Internet Statistics Compendium

http://econsultancy.com/reports/middle-east-and-north-africa-internet-statistics-compendium

Blog posts

http://econsultancy.com/blog/tags/middle-east

Training

Training courses in Dubai

http://econsultancy.com/training/in/dubai

Fast Track Digital Marketing - Dubai Training

http://econsultancy.com/training/courses/fast-track-digital-marketing-dubai/

http://econsultancy.com/reports/middle-east-and-north-africa-internet-statistics-compendium

http://econsultancy.com/blog/tags/middle-east

http://econsultancy.com/training/in/dubai

http://econsultancy.com/training/courses/fast-track-digital-marketing-dubai/




Social Media Marketing - Dubai Training

http://econsultancy.com/training/courses/social-media-marketing-dubai/

Online Media Planning and Buying – Dubai Training

http://econsultancy.com/training/courses/online-media-planning-and-buying-dubai

Usability and User Experience - Dubai Training

http://econsultancy.com/training/courses/usability-and-user-experience-dubai

Events

Digital Cream Dubai

http://econsultancy.com/events/digital-cream-dubai

To keep up-to-date with Econsultancy's latest developments in MENA, including training, reports

and events, bookmark this page: http://econsultancy.com/hello/mena

http://econsultancy.com/training/courses/social-media-marketing-dubai/

http://econsultancy.com/training/courses/online-media-planning-and-buying-dubai

http://econsultancy.com/training/courses/usability-and-user-experience-dubai

http://econsultancy.com/events/digital-cream-dubai

http://econsultancy.com/hello/mena




2. About Econsultancy Econsultancy is a community where the world's digital marketing and e-commerce professionals

meet to sharpen their strategy, source suppliers, get quick answers, compare notes, help each

other out and discover how to do everything better online.

It was launched in 1999 and since then has grown to a dominant position in the digital marketing

industry with more than 100,000 members worldwide.

Its website and blog attracts more than 300,000 unique users per month and its range of training

courses and conferences are attended by more than 5,000 marketers every year.

Econsultancy also provides a range of resources specifically for the Middle East including

regionalised reports, such as the Middle East internet Statistics Compendium, local events, online

resources and training programmes. Econsultancy‟s 100,000 members make better decisions,

build business cases, find the best suppliers, look smart in meetings and accelerate their careers.

Find out more at http://econsultancy.com/hello/mena.

For more information, visit http://econsultancy.com or follow @econsultancy on Twitter.

http://econsultancy.com/hello/mena

http://econsultancy.com/

http://twitter.com/econsultancy




3. About Real Opinions Real Opinions is the appointed knowledge partner of Econsultancy in the Middle East. It has been

at the forefront of helping to promote a better understanding of the evolving Middle East digital

landscape through its research and is considered as one of the leading innovators in digital

research. It consulted on this project and conducted research with its own exclusive online panel

across the Middle East.

Real Opinions is a full service market research consultancy through its headquarters in Dubai and

globally based consultants. It specialises in the EMEA region (Europe, Middle East and Africa)

providing innovative and strategic market research solutions and consulting. It is a regular

presenter at conferences in both the Middle East and Europe.

Its online panel includes over 100,000 Middle East Internet users and is able to conduct online

and mobile qualitative and quantitative research with them.

For more information about Real Opinions, visit http://www.real-opinions.com or follow

@realopinions on Twitter.

To contact them and for any inquiries about this research project, email inquiry@real-

opinions.com

http://www.real-opinions.com/

http://twitter.com/realopinions

mailto:[email protected]





4. Methodology and sample Respondents came from the Real Opinions online panel across the Middle East from a pool of

over 100,000 internet users. Panel members were randomly selected in each country to ensure a

representative sample was obtained in each to reflect the internet population. The number of

respondents in each country reflects a number of factors, such as the number of internet users,

the frequency of internet usage and a minimum number in order to analyse each country

individually. The number of respondents from Libya and Syria were limited due to internet

restrictions.

A total of n=1999 respondents reached the final demographic questions of the survey. Research

was conducted from 10th to 15th of June 2011 in order to have the research completed before the

seasonal school summer holidays.

Respondents were given a choice of either English (20% of respondents) or Arabic (80% of

respondents) language to complete the survey in.

The Middle East sub-regions of North Africa, Levant and GCC reflect the geographical clustering,

economic and cultural similarity. Analysis is broken down in this document by these sub-regions

to highlight the differences.

The full database of respondents is held by Real Opinions and is available for further analysis.

For further inquiries on the methodology and results, contact [email protected].





5. Findings

5.1. Internet usage

5.1.1. Use of the internet

In the Middle East, the internet is mainly used for social networking and email, according to the

vast majority of respondents. Some 88% of consumers use the web for social networking on a

daily basis, while over three-quarters (78%) use email daily.

Instant messaging and video are used less often, with over half of respondents (57% and 52%

respectively) reporting they use these technologies on a daily basis.

At the other end of the scale, some 41% have never used the internet for shopping online, while

over half of respondents (57%) have never undertaken online banking.

Figure 1: How often do you use the internet for the following activities?

Source: Real Opinions Middle East Online Panel Respondents: 2630

The charts below show the breakdown for different regions in the Middle East, including North

Africa, the Levant and states in the GCC.

The results for North Africa (Figure 2) indicate that 90% of respondents use the internet for

social networking daily, while 74% use email. Over two-thirds of respondents (69%) have never

used the internet for online banking.




North Africa


Source: Real Opinions Middle East Panel Respondents: 1001

The results below indicate 95% of internet users undertake social networking daily in the Levant

region. Over half (51%) have never used the internet for shopping online. Over a third of

respondents (38%) have never downloaded films online, compared to 29% for the Middle East

overall.

Levant






In the GCC region, it is interesting to note that online banking is far more commonplace, as only

27% have never used the internet for this type of activity, while 12% say they use online banking

daily.

Shopping online is also more common in the Gulf states than in the rest of the Middle East, with

only 23% of respondents reporting they never shop online.

Email is the number one activity undertaken on the internet in this region, with 87% of

respondents reporting they use email on a daily basis.

In contrast to the rest of the Middle East, social networking is further down the line in terms of

activities undertaken on the internet, with 80% of respondents reporting they use these types of

sites daily.

GCC



To better understand the differences between the Gulf states, the results have been broken down

further for Saudi Arabia and the UAE. Significant changes to note between the two countries

include:

Online banking. More than half of respondents in the UAE (60%) say they undertake

online banking weekly or daily, significantly more than in Saudi, where just over a third

(36%) say carry out online banking at least once a week.

– While 32% of respondents in Saudi Arabia have never undertaken online banking, only

14% in the UAE say the same.

Playing games. More respondents (over a quarter or 28%) in Saudi Arabia play games daily.

This compares to 16% in the UAE. There is also a marked difference in the proportion of

respondents who play games monthly, as this is 13% for Saudi, and only 6% for the UAE.

Phone / video calls. Only a fifth of respondents (22%) in Saudi make daily phone or video

calls using the internet, compared to over a third (34%) in the UAE.




Shopping online or researching for shopping. Only 28% of respondents in Saudi use

the internet at least once a week for internet shopping, compared to 44% in the UAE.

Saudi Arabia



UAE






5.1.2. Time spent online

Typically, internet users spend more than two hours online every day. More than a third of

respondents (38%) report spending between two and five hours online, while another 34% spend

more than five hours online daily.

Figure 7: On average, how much time in a typical day do you spend online?


The results below show the breakdown across different regions in the Middle East, indicating that

more than two-thirds of internet users in each region spend at least two hours a day online.

Breakdown between different regions in MENA

Figure 8: On average, how much time in a typical day do you spend online?





5.1.3. Location of internet broadband

The majority of internet users (86%) have broadband at home. Over a third of respondents (35%)

have broadband internet at work. Just 5% say they do not have broadband access.

Figure 9: Where do you have broadband internet access?


The results below show the breakdown between different regions in the Middle East. Some 91% of

internet users in the GCC region have broadband access at home, while over half (51%) use

broadband at work. This compares to 35% for the MENA region as a whole.

The proportion of respondents with broadband at work in the Gulf is much higher than other

regions. Comparatively, just over a quarter of respondents (26%) in North Africa and 32% of the

Levant region have broadband at work.







The breakdown of results looking specifically at Saudi Arabia and UAE show that over two-thirds

of respondents (69%) in the Emirates have broadband at work, compared to only 39% in Saudi

Arabia.

The difference in results reflects the cultural and demographic differences between the two

countries. Since UAE is more of a hub for business, it is unsurprising that more people have

access to broadband at work. UAE also has a large expatriate community, many of whom have

moved to the Emirates for work.

In comparison to UAE, Saudi has a younger population, which means that there may be fewer

Saudi Arabian respondents in the survey who are working and thus have access to internet

through work.

Results for Saudi Arabia and UAE


Source: Real Opinions Middle East Online Panel Saudi respondents: 194 UAE respondents: 171




5.2. Smartphones

5.2.1. Internet-enabled smartphones

Nokia is the smartphone manufacturer of choice in the Middle East, according to 44% of

respondents surveyed. Other internet-enabled smartphones owned by respondents include

Samsung (13%), iPhone (12%) and BlackBerry (11%). Just under a quarter of respondents (23%)

do not own a smart phone.

Figure 12: What type of internet-enabled phone (smartphone) do you have?

Note: respondents could check more than one option Respondents: 2523 Source: Real Opinions Middle East Online Panel

Figure 13 shows the results from North Africa and indicates Nokia is the most popular internet-enabled smartphone in this region according to 43% of respondents. Just over a quarter of respondents (26%) do not own an internet-enabled smartphone.

North Africa






Almost half of respondents (47%) in the Levant region own a Nokia phone with internet, while

just under a quarter (23%) do not have a smartphone.

Levant



The results from the Gulf region indicate that many respondents own other handsets in addition

to having a Nokia internet-enabled phone.

A similar proportion of respondents in the GCC region (42%) own a Nokia phone compared to the

Middle East overall (44%). However, a quarter of respondents (25%) own an iPhone, while 26%

have a BlackBerry, much higher than for other regions in MENA.

The proportion of respondents without an internet-enabled phone is just 15%, significantly lower

than for the Middle East overall and other regions in MENA.

GCC






The results from UAE and Saudi show that BlackBerry handsets are significantly more popular in

the Emirates. While over a third of respondents in the UAE (35%) own a BlackBerry smartphone,

only 17% in Saudi own a BlackBerry. This is unsurprising given the reputation of the Emirates as a

hub for business.

Slightly more respondents in the Emirates own a Nokia device. Some 44% of survey respondents

have a Nokia smartphone, compared to 37% in Saudi Arabia.

The proportion of respondents in Saudi Arabia who have a Samsung internet-enabled phone is

14%, twice as many as in the UAE, where only 7% own a Samsung smartphone.



Note: respondents could check more than one option Saudi respondents: 194 Source: Real Opinions Middle East Online Panel UAE respondents: 171




5.2.2. Activities carried out using smartphones

The main activities carried out on the internet using phones are social networking and email,

according to 77% and 70% of consumers respectively. Some 42% of respondents use instant

messaging on their phone, while a third (33%) watch video clips.

Figure 17: Which of the following activities have you carried out on the internet using your phone?

Source: Real Opinions Middle East Online Panel Respondents: 1944 The results from North Africa (Figure 18) indicate that over three-quarters of respondents (76%)

use social networking sites on their phone, while two-thirds (64%) use email.

North Africa

Figure 18: Which of the following activities have you carried out on the internet

using your phone?





Social networking and email are also the most popular activities carried out on internet-enabled

smartphones in the Levant region according to 76% and 68% of respondents respectively, as the

chart below indicates.

Levant


using your phone?

Source: Real Opinions Middle East Online Panel Respondents: 412 In contrast to the rest of the Middle East, email is the most popular activity undertaken on

internet-enabled smart phones in the Gulf, according to 81% of respondents. Only slightly fewer

respondents (79%) report they carry out social networking using their mobile phone.

The results indicate that a twice as many respondents in the Gulf undertake online banking on

their phone, compared to the Middle East overall. Just under a quarter of consumers (22%)

report they use online banking on their phone, compared to 11% for the MENA region overall.

GCC


using your phone?





The results below indicate that online forums are more popular in Saudi Arabia than in the UAE.

While 21% of Saudi respondents say they have used forums on their smartphone, only 11% of UAE

respondents say the same.

It is also noteworthy that a slightly higher proportion of Saudi respondents have carried out

online banking on their phone. Just under a quarter of respondents (24%) from Saudi Arabia say

that have undertaken online banking using their smartphone, compared to 21% of respondents

from the UAE.

Some 44% of Saudi respondents watch YouTube or online video clips on their smartphone,

compared to just under a third (32%) of respondents from the Emirates. This may be reflective of

the significantly younger population in Saudi Arabia compared to that of the UAE.



using your phone?

Saudi respondents: 194

Source: Real Opinions Middle East Online Panel UAE respondents: 171




5.3. Online purchases

5.3.1. Use of the internet for researching products Just under half of consumers (48%) say they occasionally use the internet either for looking for

products or for researching planned purchases. Under a fifth (18%) regularly use the internet for

purchases.

Figure 22: Do you ever use the internet to look for products or items to buy or to research something you plan to purchase?


The chart below shows the breakdown of results across the Middle East and indicates a third of

respondents (33%) in the Gulf regularly use the internet for purchasing or researching products.

This compares to 14% in North Africa and 12% in the Levant region.


Figure 23: Do you ever use the internet to look for products or items to buy, or to

research something you plan to purchase?





Slightly more respondents in the UAE say they regularly look for products and items to buy on the

internet. Some 44% of UAE respondents regularly use the internet to research products,

compared to just over a quarter (26%) of Saudi consumers.

Conversely, 51% of Saudi consumers occasionally use the internet to look for products, compared

to 39% of UAE respondents.

Results for Saudi and UAE

Figure 24: Do you ever use the internet to look for products or items to buy, or to

research something you plan to purchase?

Source: Real Opinions Middle East Online Panel Saudi respondents: 191

UAE respondents: 170




5.3.2. Purchasing products and services online

Over a quarter of consumers (27%) occasionally purchase products online, while only 6% make

regular purchases. Some 39% of respondents state an intention to buy products on the internet,

although they currently do not make online purchases. Over a quarter (28%) of respondents have

no intention of purchasing products online.

Figure 25: Do you purchase products or services online?


The breakdown of results across the Middle East indicates that over a fifth of respondents in

North Africa (22%) and 20% in the Levant occasionally purchase products or services online.

The proportion of respondents in the Gulf that regularly purchase online (15%) is higher than in

other parts of the Middle East. Some 42% in the GCC region occasionally purchase products and

services online, approximately twice as many as the other parts of the Middle East.







While 21% of consumers regularly buy online in the UAE, only 10% of respondents in Saudi

Arabia say they regularly purchase on the internet.

Almost a third of consumers in Saudi Arabia (31%) state that they intend to buy online although

they currently do not purchase products on the internet. This compares to 15% in the UAE who

state an intention to buy products online.








5.3.3. Barriers preventing online purchase

The main barrier preventing online purchase is lack of trust in payment, which is cited by 43% of

respondents in this survey. Payment is clearly a vital issue in this region, as the second most cited

issue is unsuitable payment options, mentioned by over a third (36%) of respondents.

Over a quarter of respondents (27%) report that there is a lack of local online retailers while 23%

cite unreliable delivery as a factor. Although e-commerce is rapidly developing in this region,

there are clearly still many barriers to overcome.

Figure 28: Which of the following has prevented you from buying online?


The results from North Africa (Figure 29)are similar to the findings for the Middle East overall,

and indicates that a lack of trust in payment prevents some 42% of respondents from buying

online.

North Africa

Figure 29: Which of the following has prevented you from buying online?





The results from the Levant region are shown below and show a similar pattern of results to the

Middle East overall. Unreliable delivery is a major problem in the MENA region, with 23% of

Levantine respondents citing this as a factor, while 17% said the inability to process orders or

deliver prevented them from buying online.

Levant

Figure 30: Which of the following, if any, has prevented you from buying

something online?


In the Gulf states, slightly fewer respondents said the lack of local online retailers (24%) was a

problem, whereas slightly more respondents (26%) mentioned unreliable delivery. Some 14%

reported poor website design was a problem. This compares to 9% for the Middle East overall.

GCC

Figure 31: Which of the following, if any, has prevented you from buying

something online?





5.3.4. Types of products purchased online

There are a wide variety of different types of products bought online in this region. Nearly half of

respondents (47%) have bought flights online and over a third (38%) have purchased a hotel

reservation.

Other items paid for online include utility bills (37%), books (31%), and clothes (27%). Over a

quarter of respondents (27%) have paid their credit card bills online, while a quarter (25%) have

paid for gifts delivered to other people.

At the other end of the scale, the items least likely to be bought online include films, food and

groceries, virtual currency and furniture. The online market for films in this region may be

restricted due to the prevalence of pirated movies, which may explain why only 10% of consumers

have bought movies online. Online grocery shopping is not yet fully developed in this region,

which explains why few people (8%) have bought food online.

Only 4% of consumers have purchased furniture online, and this may be because many furniture

stores in the Middle East are not yet set up for e-commerce. As an example, Ikea UAE allows

users to add items to their shopping list online, but as yet does not allow the customer to pay for

the product online or have the item delivered. Instead, the customer has to visit the store to buy

the product and arrange for home delivery.

It is interesting to note that although 19% of consumers have paid for online games, only 7% have

bought virtual currency. The market for social gaming and virtual worlds is still in the early

stages of adoption in this region, but this sector is rapidly growing in the Middle East, with

already a fifth of consumers having paid for online games. Some of the leading local games

publishers in the Middle East include Jabbar Internet Group‟s Tahadi.com, and Peak Games,

which provides Turkish, Middle Eastern and North African consumers a localised version of the

game Zoo World 2 on Facebook.

Figure 32: What have you purchased or paid for online?





The chart below shows the breakdown of results for North Africa and indicates that consumers

here are less likely to buy products online than in the Middle East overall. A third of consumers

(33%) have paid for utility bills online. Significantly fewer consumers (28%) have bought flights

compared to the rest of the Middle East.

A quarter of respondents (25%) have paid for hotel reservations, while a similar proportion (26%)

have paid for books. Only 6% have bought cinema tickets online and it worth noting that this may

be due to fewer cinemas in this part of the world.

North Africa



The results from the Levantine region (Figure 34) show that a similar proportion of products are

purchased online, but there are slight differences in the order of the results.

In particular, fewer respondents (15%) have paid for utility bills online, compared to the Middle

East as a whole. Additionally, just 13% of respondents in the Levant have paid their credit card

bill online compared to 27% for the MENA region overall.

Clothes are purchased online by only a fifth of consumers (19%), compared to 27% for the Middle

East overall.

Notably, 10% have paid for virtual currency, slightly higher than for the Middle East overall, and

16% of consumers have paid for online games.




Levant


Source: Real Opinions Middle East Online Panel Respondents: 122 The results from the Gulf states indicate a higher propensity to purchase different types of

products online, compared to the Middle East overall. Almost two-thirds (63%) have purchased

flights online, while half (50%) have reserved hotels.

Some 48% have paid utility bills online, while over a third (38%) have paid credit card bills

online. Other products, such as household and electrical products (27%) and gifts delivered to

others (33%) are bought online by a higher proportion of consumers in the GCC than for the

Middle East overall.

It is worth noting that a significantly higher proportion of respondents in the GCC have bought

cinema tickets online; 22% compared to 14% for the Middle East overall. This may simply reflect

the fact that some parts of the GCC region (the UAE, in particular) have more physical cinemas

than the rest of the Middle East.

GCC






The results for Saudi Arabia and the UAE indicate that a far higher proportion of consumers in

the Emirates are buying products online. Additionally, respondents from UAE are also purchasing

a wider variety of different products.

Flights are purchased online by over half (58%) of consumers in the Emirates, twice as many as in

Saudi Arabia, where just over a quarter of respondents (27%) buy this online. Some 46% of

respondents in UAE have paid for hotel reservations, while 22% in Saudi have paid for this

online.

Just under half of UAE consumers (49%) pay their credit card bills online, compared to just 9% of

Saudi consumers. Similarly, only 25% of Saudi respondents pay their utility bills online,

compared to 52% of respondents in the UAE.








5.4. Payment cards

5.4.1. Ownership of payment cards

Almost half of consumers in the Middle East (47%) have a payment card as Figure 37 shows.

However, 53% of consumers in this region do not have a payment card.

Figure 37: Do you have a payment card?


The breakdown of results indicates that over two-thirds of consumers (68%) in the Gulf states

have a payment card, significantly higher than for other parts of the Middle East. Only 40% of

North African consumers have a payment card.







The results below indicate that 60% of respondents in Saudi Arabia have a payment card,

compared to 82% in the UAE.








5.4.2. Use of payment cards for online purchases

The vast majority of consumers have used their payment card to buy something online. Of

consumers who have a payment card, 84% have made an online purchase using the card.

Figure 40: Have you used your payment card to buy something online?


The proportion of consumers who have made an online purchase with a payment card is even

higher in the Gulf at 90%. North Africa has the lowest proportion of consumers using their card to

pay for products online at 71%.







The results below show that of the respondents with payment cards, 84% in Saudi Arabia have

used their card to buy something online. Some 94% of consumers in the UAE have used their card

to make an online purchase.








5.4.3. Consumers considering payment cards for online purchases

Over half of consumers (59%) state that they would consider using a payment card to buy

something online, compared to 41% who say they would not consider using a card.

Figure 43: Would you consider using a payment card to buy something online?


Over half of consumers in North Africa and in the Levant region (52%) state they would consider

using a payment card to buy something online. In the Gulf region, this proportion is even higher,

with 72% stating they would consider purchasing something online using a payment card.


Figure 44: Would you consider using a payment card to buy something online?





5.5. Social media

5.5.1. Use of social media websites

Facebook is overwhelmingly the most popular social media site in the Middle East, with some

98% of respondents stating they use the site. Next on the list is YouTube, with 61% of respondents

using the site, significantly fewer than Facebook, the leading social network in the region.

Other social media sites are considerably less popular. Just under a third of respondents (31%)

said they use Wikipedia, while 28% use Twitter.

The most popular local Arab social networking site is Mattoon’s As7ab, with 11% of respondents

reporting they use the site. Other local sites include ArabFriendz, Kalam, and MyArabPlace but

penetration is very low, with only 1% of people using these sites.

Figure 45: Which of the following social networks and social media websites do you use?





In North Africa, Facebook has 99% penetration amongst internet users. A large proportion of the

respondents in this region are based in Egypt. It is worth noting that Egypt saw large increases in

the number of Facebook users following the revolution, gaining 632,120 new Facebook users from

January-February, 2011, an increase of 12.16%.1

Over half of internet users (58%) say they use YouTube, while 29% use Wikipedia and 27% use

Twitter.

North Africa

Figure 46: Which of the following social media websites do you use?

Source: Real Opinions Middle East Online Panel Respondents: 884 The results from the Levant region indicate that 100% of the respondents to this survey use

Facebook. Some 60% use YouTube, and 27% use Wikipedia.

Levant

Figure 47: Which of the following social media websites do you use?


1http://jeffesposito.com/2011/02/21/egypts-social-media-revolution-by-numbers/

http://jeffesposito.com/2011/02/21/egypts-social-media-revolution-by-numbers/




In the Gulf states, Facebook has 96% penetration among internet users. The proportion of

respondents that use YouTube is slightly higher than in other parts of the Middle East, with 71%

penetration.

Notably, Wikipedia and Twitter also have more users in the Gulf states than in other parts of the

Middle East. Over a third of consumers (36%) use Twitter, slightly higher than for the Middle

East overall (28%).

The use of LinkedIn is slightly higher in the GCC region, with almost a quarter of internet users

(24%) using the site, compared to 11% for the Middle East overall.

GCC

Figure 48: Which of the following social networks and social media websites do

you use?


The results from Saudi Arabia and UAE highlight that LinkedIn is used far more frequently in the

Emirates than in Saudi. Some 45% of respondents in the UAE use LinkedIn, compared to only

12% in Saudi Arabia.

Over a third of Saudi respondents (36%) use Wikipedia, fewer than in the UAE, where over half

(52%) of consumers report they use the site.

It is noteworthy that Maktoob’s As7ab is used by slightly more respondents in Saudi Arabia than

in the UAE. Some 15% of Saudi consumers use the Arab social network, compared to only 5% in

the Emirates. This is partly due to the greater proportion of Arab speakers in Saudi Arabia.





Figure 49: Which of the following social networks and social media websites do

you use?






5.5.2. Adding comments in online discussions

Over half of internet users (52%) say they have occasionally added a comment in an online

discussion, but only 8% do so regularly. Just under a quarter of users (22%) state an intention to

add comment to an online discussion, while 19% have no intention of commenting.

Figure 50: Have you ever added a comment in an online discussion about a brand or product, either on a social network, a forum or on a blog?


The results below show that there is little difference in the propensity to comment online across

the different regions across the Middle East.


Figure 51: Have you ever added a comment in an online discussion about a brand

or product, either on a social network, a forum or on a blog?





The results below indicate that slightly more respondents in the UAE (26%) have not added a

comment and do not intend to add a comment. In Saudi Arabia, this is only 13%.

Over half of Saudi Arabian consumers (56%) say they have occasionally added comments to

online discussions compared to 47% of respondents in the UAE.


Figure 52: Have you ever added a comment in an online discussion about a brand

or product, either on a social network, a forum or on a blog?






5.5.3. Ratings and reviews

Over half of consumers (55%) say ratings and reviews occasionally influence their decision to

purchase a product or service, while 10% are regularly influenced. Conversely, over a third of

consumers (35%) say that ratings and reviews do not influence the decision to purchase.

The results across the Middle East (Figure 54) indicate that a higher proportion of respondents in

the GCC (16%) say ratings and reviews regularly influence their decision to buy a product or

service.

Figure 53: Have online ratings and reviews ever influenced your decision to buy a product or service?



Figure 54: Have online ratings and reviews ever influenced your decision to buy a

product or service?





5.5.4. Liking brands on Facebook

Over three-quarters of respondents (77%) say they have „liked‟ a brand on Facebook, compared to

only 23% who have not.

Figure 56 shows the differences across the region, indicating that slightly more consumers in the

Levant region (82%) have „liked‟ brands on Facebook.

Figure 55: Have you ever “liked” a brand on Facebook?








Almost three-quarters of respondents (72%) in Saudi have liked a brand on Facebook, compared

to over half (57%) in the UAE.

It is interesting to note that Saudi consumers are far more open to engaging with brands on

Facebook than Emirati consumers. This may be down to the younger population of Saudi Arabia,

despite a higher proportion of respondents in the UAE using Facebook.

Results for Saudi Arabia and the UAE







5.5.5. Following brands on Twitter

In contrast to the results above, very few respondents have „followed‟ brands on Twitter. Twitter

still has very low penetration in the Middle East and is in the early stages of growth. Only 20% of

consumers have followed brands.

Figure 58: Have you ever “followed” a brand on Twitter?


Figure 59 shows the breakdown of results across the region. The GCC has the highest proportion

of consumers who „follow‟ brands at 24%. Only 17% of consumers in the Levant say they follow a

brand.

Breakdown between different regions in MENA Figure 59: Have you ever “followed” a brand on Twitter?





5.6. Search

5.6.1. Use of search engines Google is the most commonly used search engine in the region with 61% of respondents using the

English version of the site. Over half (58%) are using the Arabic version of Google.

A quarter of respondents (25%) use Yahoo! Maktoob in the Middle East. Bing is only used by 8%

of consumers in the Middle East.

Figure 60: Which of the following search engines do you use?


Almost three-quarters of respondents (74%) in the Gulf region use the English version of Google,

according to Figure 61. Fewer respondents in the GCC use the Arabic version of Google (42%)

compared to the rest of the Middle East. This is unsurprising given that countries in the GCC,

such as UAE have a large expatriate population whose first language may not be Arabic.







The results below show the differences between Saudi Arabia and the UAE. The vast majority of

respondents in the UAE (92%) use the English version of Google and only 23% use the Arabic

version of Google.

Saudi Arabia is very different, however, where a large proportion of the population are Arabic-

speaking. Only 45% use the English version of Google, while 82% use the Arabic version.

The use of Maktoob also varies between the two countries. Just under a fifth of respondents (19%)

in Saudi Arabia use Maktoob, compared to 30% in the Emirates.

Results for Saudi Arabia and the UAE







5.6.2. Language for search

Over a third of consumers (35%)search mainly in Arabic, while just under a quarter (24%) of

respondents search mainly in English. Just under a fifth of consumers (19%) always search in

English. Only 7% of respondents search in languages other than Arabic or English.

Figure 63: Do you search in English or in Arabic?


The chart below shows that Arabic is the main language for search for 36% of North African

respondents and 42% of Levantine consumers. In the Gulf states, some 44% say they always

search in English, compared to 19% for all MENA respondents.

Only 22% of respondents in the GCC say they mainly search in Arabic, while 9% say they always

search in Arabic, significantly lower than in other parts of the Middle East.

Some 14% of respondents in North Africa say they search in neither English nor Arabic and this

could be due to French-speaking respondents in countries such as Morocco and Algeria.







There are also significant differences in the languages used for search between Saudi Arabia and

the UAE. Over a fifth of respondents (21%) in Saudi always search in Arabic, compared to only

2% in the UAE. Over half of Saudi respondents (51%) search mainly in Arabic, compared to 8% of

Emirati respondents.

The vast majority of respondents in the UAE (72%) always search in English, compared to 9% in

Saudi Arabia.







5.6.3. Sponsored listings

The chart below looks at the proportion of respondents who click on paid search ads. Over a third

(35%) do not click and say they do not intend to. While 27% say they occasionally click, over a

fifth (21%) say they are unaware of the difference between normal and paid-for search listings.

Figure 66: Do you ever click on the sponsored listings in search engine results?


The results from across the region indicate that a greater proportion of respondents (40%) in the

GCC region say they occasionally click on the sponsored listings in search engine results. This

compares to 22% for North Africa and 23% for the Levant.

Additionally, fewer respondents in the GCC (29%) say they have no intention of clicking on paid

search ads, compared to 41% for the Levant, and 35% for North Africa.







The results below indicate that over a quarter (28%) of respondents in Saudi Arabia are unaware

of the difference between normal and paid-for listings, compared to only 7% in the UAE.

Just under a third of Saudi respondents (32%) say they occasionally click on sponsored listings,

while just half (48%) of consumers in the UAE sometimes click on these results.








5.7. Email

5.7.1. Subscribing to email newsletters

Over a fifth of respondents (22%) say they regularly subscribe to email newsletters, while 9%

occasionally subscribe. Over half of internet users (54%) in the Middle East intend to subscribe to

email newsletters or updates from companies or brands.

Figure 69: Do you subscribe to email newsletters from companies and brands?


Notably, the results below show that fewer consumers in the GCC (16%) regularly subscribe to

email newsletters compared to North Africa and the Levant. However, slightly more respondents

in the Gulf state an intention to subscribe. This is 61% in the GCC, compared to 54% for the

Levant and 48% in North Africa.


Figure 70: Do you subscribe to email newsletters from companies and brands?





5.7.2. Purchases resulting from email newsletters

Some 42% of respondents say they have not bought something as a result of an email newsletter

and say they have no intention to buy anything. A fifth (19%) say they occasionally buy a product

as a result of an email. Over a third (37%) of internet users state an intention to buy something

although they have not bought something already.

Figure 71: Have you ever bought something because of an email you received from a company?

Source: Real Opinions Middle East Online Panel Respondents: 2256 The breakdown of results from across the region indicates that almost a third of respondents in

the GCC (31%) have occasionally bought something as a result of an email, compared to 17% for

the Levant and 14% for North Africa.

Correspondingly, slightly fewer respondents (29%) in the Gulf states say that they intend to buy

something as a result of email. This compares to 37% for the Middle East overall.


Figure 72: Have you ever bought something because of an email you received

from a company?





6. Respondent profiles

6.1. Gender The majority of respondents (72%) taking part in this survey are male. Just over a quarter (28%)

are female.

Figure 73: Are you male or female?


6.2. Age Over half of respondents in this survey (59%) are aged between 21 and 35, while 17% are under 21

and 22% are aged 35 and over.

Figure 74: In which age range do you fit into?





The chart below shows the age breakdown for respondents in Saudi Arabia and the UAE. The

results show that Saudi has a significantly younger population and that there more respondents

aged above 35 in the Emirates.


Figure 75: In which age range do you fit into?



6.3. Geographic location Over a third of respondents (38%) reside in North Africa, while over a quarter (28%) are from the

Gulf states. Just over a fifth (22%) are from the Levant. Some 12% fall into the „Other Middle East‟

category, which includes Iran, Iraq and Yemen.

Figure 76: From which region in the Middle East do you mainly reside in?





Figure 77 shows the total breakdown of countries in the Middle East, and indicates that 20% of

respondents reside in Egypt.

Figure 77: Which country in the Middle East do you reside in?


Middle East Digital Consumer Report

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