E-commerce in UAE – How Vast is the E-commerce Industry of UAE

E-commerce in UAE – How Vast is the E-commerce Industry of UAE

Electronic commerce refers to the selling and buying of products and services and the transmission of monetary value via an electronic system most commonly the internet. Such commercial exchanges commonly take place among business to business (B2B), businesses and consumers (B2C), and consumers (C2C), to consumers.

The industry for eCommerce in the Emirate of Dubai contributed to the global growth rate of 15% in 2021 by expanding at a rate of 36%. Across the next several years, it is anticipated that sales made over the internet will rise worldwide. The expansion of international trade will accelerate in the coming years as a result of the emergence of emerging businesses. The expanding middle classes in East and Southeast Asia, and their outdated offline network will be the driving force behind this growth.

As per the information gathered by Assignment Writing Services in Abu Dhabi, United Arab Emirates (UAE) leads the other nations that are members of the Gulf Cooperation Council (GCC) in terms of e-commerce. In 2020, the UAE's market increased by 53%, reaching a milestone of $3.9 billion in e-commerce revenues, which represented 10% of overall retail trade. A COVID digital transition was a significant contributor to this development. Due to the fact that practically the entire population of the UAE has access to the internet and mobile phones, the Dubai Chamber of Commerce and Industry has projected that eCommerce will produce $8 billion in sales by the year 2025.

E-commerce Trends

The worth of the smartphone retailing industry hit $2.6 billion in 2015, representing 44% of the overall value of the e-commerce business. Sales from mobile devices in stores are projected to increase at a CAGR of 15.6% between 2022 and 2026, rising to $4.62 billion by the end of that decade.

According to the report, one-third or more of UAE customers made a purchase on their smartphones at least every week, which is more frequent than the weekly online transaction frequency seen anywhere else in the world.

According to the survey, an increasing number of membership incentives provided by online retailers also spurred greater demand for online purchasing in the UAE, which cites the proliferation of apps as one of the important factors driving the high development of mobile e-commerce activities. There are many companies generating revenue and supporting UAE economy through ecommerce activties. As aspected the biggest player among these are Amazon.ae, opensooq.com, noon.com and few others. These stores are selling on global as well as on national markets. However, the present is relating to UAE market. 

The Evolving Ecommerce Market UAE

The United Arab Emirates (UAE's) e-commerce environment has seen significant change and expansion over the last several years due to substantial investments, mergers, and collaborations with businesses located worldwide. The characteristics of the UAE e-commerce industry have been dramatically altered due to investments made in the sector, the most notable consequence of which has been a decline in prices due to greater competition and availability.

According to statistics, due to pandemic in year 2020, UAE made a remarkable 53% increase in sales of Ecommerce, reaching $3.9 billion record accounted  for 10% retail sales. Nevertheless, Dubai Chamber of commerce and industry forecast that in the year 2025, $8 billion of sales can be expected. It has been determined that the development and advancement of payment methods and solutions is another important aspect that has contributed to the increase in consumption and commercial activity within the e-commerce industry of the UAE.