MENA’s online classifieds sector is rapidly evolving, with strong growth driven by increasing digital adoption and advertising expenditure. While platforms have traditionally relied on seller-paid advertising for revenue, the next wave of value creation lies in facilitating transactions and offering value-added services. As classifieds expand their role from listings to full-service marketplaces, they are unlocking new monetization opportunities and enhancing user experience.
In this article, we explore four key trends shaping the future of MENA’s online classifieds market.
- Online classifieds have experienced strong growth, driven by rising advertising spending
- However, the next wave of value creation lies in value-added services & facilitating transactions, unlocking untapped potential
- With <1% of TAM beyond advertising penetrated, the sector could see massive upside through value-added services & facilitating transactions
- This could position classifieds platforms as major players in MENA’s evolving IPO landscape
Online classifieds have experienced strong growth, driven by rising advertising spending
The online classifieds market in MENA is experiencing strong growth, with more businesses and individuals turning to digital platforms to buy and sell. As demand rises, platforms are attracting more users and listings, driving higher engagement. Most players generate revenue by charging sellers a fee to advertise their listings, making advertising the dominant revenue stream. While this model has fueled growth so far, the market is now ripe for evolution, with future opportunities in transaction facilitation and value-added services.
However, the next wave of value creation lies in value-added services & facilitating transactions, unlocking untapped potential
The future lies in facilitating transactions. Platforms are expanding beyond listings, offering verification, logistics, and financing services to enhance trust and streamline sales. The biggest shift will be capturing a share of completed transactions, especially in high-value segments like real estate and automotive. By integrating payments, buyer protection, and financing, classifieds platforms can unlock new revenue streams and transform the market.
With <1% of TAM beyond advertising penetrated, the sector could see massive upside through value-added services & facilitating transactions
Beyond advertising, vast revenue potential remains untapped, with less than 1% of TAM monetized through value-added services and transactions. Consumers increasingly seek convenience, trust, and seamless transactions, making verification, financing, and payment integration highly valuable. Expanding into commissions, payments, and premium services not only unlocks new revenue for platforms but also enhances the user experience, driving loyalty and engagement. As classifieds evolve into full-service marketplaces, they are set to redefine digital commerce in MENA.
This could position classifieds platforms as major players in MENA’s evolving IPO landscape
As MENA’s digital economy matures, online classifieds platforms are emerging as strong IPO contenders, joining the ranks of FinTech, FoodTech, and B2B SaaS companies. With their large user bases, growing revenues, and expanding service offerings, leading players like Dubizzle, Property Finder, Bayt, and OpenSooq are well-positioned to capitalize on public market opportunities.
By moving beyond advertising and enabling transactions, classifieds platforms can unlock greater financial scale and investor appeal, making them key players in MENA’s next wave of digital-first IPOs.
