The sharing economy in Middle East is growing and the estimated spending of GCC consumers on sharing economy platforms is $10.7 Billion. Check out our infographic on "Sharing Economic in Middle East" for latest statistics and trends including  Middle East Consumers Sharing Economy Spending by Sector, top benefits of sharing economy spending according to middle east consumers, top sharing Economy sectors in Middle East by Usage and more.

The Sharing Economy in the Middle East: Key Statistics and Insights

Introduction The concept of the sharing economy has significantly reshaped consumer behavior and business models globally, and the Middle East is no exception. Countries in the Gulf Cooperation Council (GCC) have embraced this economic model, leading to substantial spending and growth in various sectors. Below is a detailed overview of the sharing economy in the Middle East, backed by statistics and insights derived from consumer behavior and spending patterns.

Estimated Spending on Sharing Economy Platforms Recent estimates indicate that GCC consumers have collectively spent approximately $10.7 billion on sharing economy platforms. This spending reflects the growing reliance on peer-to-peer services, driven by convenience, technological advancements, and a shift in consumer preferences.

Sharing Economy Spending by Sector The estimated spending of $10.7 billion is distributed across several key sectors, with transportation leading the charge. The breakdown is as follows:

• Transportation: $2.97 billion

• Financial Services: $2.28 billion

• Business Services: $2.16 billion

• Household Services: $2.00 billion

• Accommodation: $1.29 billion

These numbers highlight the widespread adoption of shared services in areas that are integral to daily life and business operations. Transportation services, including ride-hailing platforms, continue to be the most prominent contributor, followed closely by financial and business services.

Key Benefits of the Sharing Economy According to GCC Consumers 

Consumers in the GCC region have identified several key advantages of participating in the sharing economy. The top benefits reported by consumers in Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the UAE are as follows:

• Reduced Costs: Cited as a benefit by 64% to 72% of consumers across the GCC countries.
• More Benefits and Discounts: Recognized by 30% to 37% of respondents.
• Increased Convenience: Highlighted by 25% to 32% of consumers.
• Better Financial Management: Appreciated by 12% to 24% of respondents.

These findings suggest that cost savings remain the primary driver, but convenience and financial flexibility are also gaining importance.

Top Sharing Economy Sectors in the Middle East by Usage

 The sharing economy sectors witnessing the highest user engagement in the Middle East are as follows:

• Transportation Services: Car sharing and ride-hailing platforms are used by 28% to 30% of respondents.
• Secondhand Product Platforms: Utilized by 12% to 41% of consumers.
• Accommodation Services: Engaged by 14% to 36% of respondents.
• Financial Services Platforms (Peer-to-Peer): Used by 15% to 33% of consumers.

This data emphasizes the popularity of transportation and resale platforms, underscoring a growing interest in sustainable consumption and convenience-based services.

Projected Increase in Spending by Shared Economy Users by Sector Looking ahead, users of sharing economy platforms are expected to increase their spending across various sectors. The estimated growth percentages are as follows:

• Accommodation: 42%
• Business Services: 40%
• Transportation: 38%
• Financial Services: 35%
• Household Services: 34%

These projections demonstrate the potential for continued growth as consumers deepen their engagement with shared platforms and services.

Challenges Facing the Sharing Economy in the Middle East Despite 

The promising growth and certain challenges hinder the expansion of the sharing economy in the Middle East. The primary barriers reported by consumers in GCC countries include:

• Need to See the Product: Reported by 49% to 60% of respondents.
• Lack of Sharing Platforms: Cited by 17% to 19% of consumers.
• Lack of Options in Some Areas: Mentioned by 16% to 21% of respondents.
• Lack of Trust in Service Providers: Noted by 6% to 13% of consumers.
• Poor Quality of Services: Highlighted by 4% to 12% of respondents.

These challenges suggest that while the sharing economy is growing, concerns related to trust, product evaluation, and service quality must be addressed to ensure sustained expansion.

The Impact of the Sharing Economy on Traditional Industries

The growth of the sharing economy in the Middle East is also having a profound impact on traditional industries. For example, the rise of ride-hailing platforms has disrupted the traditional taxi industry, forcing local governments and businesses to rethink their regulations and business strategies. Similarly, the demand for short-term accommodation through platforms like Airbnb has created challenges for the hospitality sector, which must now compete with shared offerings at potentially lower costs.

As the sharing economy continues to evolve, industries such as retail, real estate, and logistics are also beginning to explore ways to incorporate shared services into their business models. Retailers, for instance, are looking into sharing platforms for warehouse space and inventory management, while real estate companies are offering short-term property rentals as a way to meet the growing demand for flexibility in housing.

Government Regulations and Support for the Sharing Economy

Governments in the GCC region are increasingly recognizing the significance of the sharing economy and are taking steps to regulate and support its growth. In Dubai, for example, the government has introduced a licensing framework for ride-hailing platforms, ensuring that these services operate within the boundaries of the law while offering protection to consumers and service providers alike.

Additionally, in Saudi Arabia, authorities are encouraging the use of digital platforms for various services, including logistics and accommodation, to foster innovation and reduce costs. In the UAE, the government's vision for the future includes making Dubai a global leader in the sharing economy, with initiatives such as the Dubai Smart City project, which promotes digital platforms for urban services and mobility.

However, there are challenges that need to be addressed in terms of regulatory frameworks to accommodate the unique nature of the sharing economy. Governments will need to strike a balance between promoting innovation and ensuring that service providers comply with relevant safety and consumer protection standards.

Conclusion 

The sharing economy in the Middle East, particularly within GCC countries, is experiencing robust growth driven by convenience, cost efficiency, and technological adoption. However, challenges such as trust issues, service quality, and accessibility gaps need to be addressed to unlock the full potential of this economic model. As consumer behaviour continues to evolve, the sharing economy is likely to become an even more integral part of the region's economic landscape.