The Arab consumer is unique and needs to be treated differently than consumers in other parts of the world. Below we will examine some of the consumer behavior, traits, characteristics and demographics of a Middle Eastern Arab consumer that set them apart from consumers in other parts of the world. It should be noted that many of these points are broad generalizations with the intent to help inform businesses looking to operate in the region on how they can better reach their target audience. Since these are broad generalizations about Arab consumers there will always be exceptions to these traits that defy the norm.

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Despite the opulent wealth in many of the Gulf countries, payment methods in the Arab world are still catching up to what they are in many western countries. Many Middle Eastern countries have typically been cash-based societies and the use of credit cards has been a relatively new thing in the region. To add to this laws about interest in the Quran and the Hadith have made it hard for many interest-based payment methods to take hold in the region because they are considered to be against the practices of Islam. In this article I will outline some of the payment methods that are available in the region.

Cash On Delivery

Cash on delivery is probably the most popular payment method in the region. Because of the lack of credit cards in the region cash on delivery has gained popularity as an online payment method among locals. Cash on delivery is also a payment method that allows consumers to see the products they buy online before they actually pay for them. Due to this fact many online retailers in the region say that cash on delivery has a return rate much much higher than any other payment methods. We have seen statistics that say anywhere from 12 to 13 times the number of returns happen with cash on delivery when compared to credit cards. Consumers receive the package open it and often times say they don’t want it and return it immediately. As you can imagine this can be very costly for the e-commerce merchant as they have to pay the delivery cost without receiving any type of reimbursement. This issue has made it so some retailers in the region have chosen not to use cash on delivery, especially when the e-commerce merchant is just getting started.

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The Middle East is currently a focus for many Western companies looking to expand their reach and take advantage of this region’s fruitful opportunities. Conducting business in the Middle East and the Arab World means forging international partnerships and bridging cultural gaps: a solid foundation of cross-cultural understanding and respect should be established to ensure success. IstiZada is here to help – our guide on Arab business meetings will give you a comprehensive overview of what you need to know about making the most of Middle East business meetings.

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Eid Al-Fitr – What is it?

As one of the biggest Muslim holidays, Eid Al-Fitr presents a great opportunity for marketers to engage with consumers across the Muslim world. By understanding the cultural and religious background of the holiday and the ways in which it is celebrated, marketers will be able to effectively target their approaches to a vast audience of consumers. From the holiday’s history to current market trends, this guide will break down what you need to know about Eid Al-Fitr to make the most of this opportunity. (more…)