- Within the Arab league, UAE boasts of fastest growing and sustainable E-commerce industry boom in recent years.
- Accordingly, to a survey conducted by Dubai Economy and Visa payment company, UAE, the global E-commerce Industry pioneers are forecasting that its E-commerce transactional deals will hit a total of $16 billion (Dh59 billion) during 2019.
- Thus, it would surge 23 percent annually within the period of four years between 2018 to 2022.
With the joint study done by Dubai government body and the payment pioneer, the UAE has emerged as the most advanced E-Commerce market in the Mena (the Middle East and North African) territory. This study also compiled data collected from developed economies like the US, Canada, UK, Sweden, Australia, and Singapore, as well as the active emerging markets like Brazil, South Africa, and Malaysia.
This intuitive and extensive ‘UAE eCommerce Landscape’ study underlines unique and innovative push opted by UAE, like: –
- Concept of Dubai Smart City and Expo 2020.
- Building a city filled with tech-eager and tech-oriented consumers and building platforms like AI, Machine Learning and Advanced Robotics.
- Building and pooling investments for a favorable, flexible ecosystem promoting the Start-up and Entrepreneurship growth
Thus, these are the chief factors that have positioned the UAE and Dubai on the crossroads of the pioneers of the E-commerce boom in the Mena region.
Sami Al Qamzi, Director General Of Dubai Economy, stated that ‘UAE’s eCommerce Landscape’ report paves the way for better and valuable insights on the following core values like consumer preferences and investments in tech entrepreneurship that will thus, fasten Smart transformation of UAE and Dubai.”
Al Qamzi also added to his point that, “For sustenance of the eCommerce momentum or boom in long run, following aspects act as strong fundamental base i.e., are Public-private partnerships to drive awareness and trust on the value, convenience and security of online shopping and expand the digital payment option, thus providing a unique, innovative concept of cashless payments and providing secure payment platforms for businesses and the public.”
He also added that, “They are delighted lot in having a great momentous partnership with Visa as their global payment solutions thus, enabling them to capture a reliable market share as well as research and provide foolproof data and insights on current eCommerce trends and consumer behaviour that is vital to Dubai’s evolution as a Smart City.”
He also pointed out that the presence of Global eCommerce corporate, such as Amazon, expanding to Dubai is a strong testament to the Emirate’s competitiveness as a digital innovation hub.
Marcello Baricordi, Visa’s head for the Mena region, stated that: “By the growth of the e-commerce sector within the UAE, there’s an incredible chance to drive economic process and extend the advantages of digital payments to residents and businesses within the country.”
Online retail within the UAE has been on an upswing with nearly two-thirds of tiny retailers in the Emirates, reporting higher revenues, according to a previous study by Visa. The utilization of mobile wallets within the UAE has augmented with world giants like Google Pay, Samsung Pay and Apple Pay getting into the market together with native players like Etisalat wallet and Beam wallet, as well as that of indigenous banks.
The UAE’s mobile wallet market is anticipated to grow at a compound annual rate of twenty-four percent and reach $2.3 billion (Dh8.44 billion) by 2022, per a report from TechSci analysis within the United States of America. Digital commerce and cashless payments are known as prime priorities within the UAE’s Vision for 2021, and it aims to become a cashless society by 2020, as per the sensible Government initiative.
At 4.2 percent of total sales, e-commerce penetration within the UAE beat Mena and GCC averages of one.9 percent further as three percent, per the most recent Visa study.
Higher web penetration, advanced digital infrastructure, and a younger population needing to embrace technology-driven solutions were behind the upper growth numbers.
The typical price of an E-commerce dealing within the UAE in 2018-2019 was $144, which was sizeable compared with averages for mature and rising markets at $79 and $26, respectively.
“The ‘UAE eCommerce Landscape’ report is the latest in their efforts to share knowledge with our partner, motivated by our commitment to help accelerate the adoption of digital payments across all areas, reduce the dependency on cash and open up new avenues for the further development of the eCommerce sector.”
The UAE’s rapidly expanding start-up ecosystem that continues to attract VC (Venture Capital) funding and M&A (Mergers & Acquisition) activity are significant attractions for global eCommerce giants and industry innovators, the report, says, pointing to the acquisition of Souq.com by Amazon and Uber taking over Careem. The trans-shipment advantage of Dubai will also contribute to eCommerce growth in the UAE.
Thus, the emphasis is on the government in promoting a cashless economy and greater transparency have boosted the eCommerce sector in the UAE.
The Dubai Internet City (DIC) has established a favorable environment for entrepreneurs and start-ups to nurture the next big wave of ICT innovation. The emPay digital wallet, launched by Dubai Economy and the Dubai Commerce initiative, is also highlighted as outstanding initiatives towards promoting eCommerce and offering more convenient access to digital transaction platforms.