The UAE has nearly 100% web penetration & it is reputed as a top-notch shopping destination. Moved by this very fact, E-commerce has seen exceptional growth in the country over the previous 5 years. To an extent, terms such as “megatrend” have progressively come to be utilized while talking about the online shopping portals in the UAE. The United Arab Emirates (UAE) is the world-class E-commerce market in the Gulf Cooperation Council (GCC). It surpassed Saudi Arabia although this is the only 1/3rd of the Kingdoms’ populace size. The major accelerator of this e-commerce market is the segment of mobile internet. Customers in the UAE utilize their Smartphones in several ways like the online buying tool.
UAE – The Incredibly Amazing Place for Online Shopping Portals!
- As per the survey, 44% of UAE respondents utilize their Smartphones to pay for online shopping.
- Nearly 1/3rd of the country’s respondents utilized their Smartphones for reviewing products they planned to buy online.
- Over 40% of the people have utilized their phones for comparing prices of different online shopping portals in UAE.
- Emirati e-commerce has among the topmost growth in current years.
- Also, it is the most versatile market throughout the MENA (the Middle East/North Africa) region.
- Cross-border buying is quite famous in the country.
- 46% of the customers stated they have bought from foreign sites in 2017.
- By far, American sites were the most visited e-commerce platform which is followed by Indian & Chinese sites.
Cobone.com, Sukar.com, and Souq.com are the greatest locally-based e-commerce sites. Amazon acquired Souq.com and in 2017, Emaar Group launched Noon.com. This is what is believed to further enhance the Emirati e-commerce market. Fashion was the highest product category bought by the UAE consumers online which is followed by electronics. Meal-kit delivery and Groceries haven’t yet made a relevant effect on e-commerce. However, they do signal robust growth potential. In the UAE, the futuristic city of Dubai has exceptionally high rates of web penetration & a tech-savvy populace.
Dubai has also a robust infrastructure for business, and so it is the ideal location for market basket online shopping. Are you planning to expand your e-commerce business or into establishing a start-up? Well, then this city has everything you can ask for. Its e-commerce market is undoubtedly the fastest and largest-growing across the UAE. 81% of Dubai’s residents daily get engaged in online buying. Now, this is an astonishingly high percentage for a city with a majority of malls throughout the world.
Let’s take a look at the 10 topmost online purchases in this country:
- Airline Tickets
- Reservations for Hotel
- Event Tickets
- Accessories & Clothing
- Computer Software
- Games and Videos
- Electronic Equipment
The above-mentioned list signifies the Emiratis’ eagerness of buying goods associated with entertainment and technology online. Also, it displays that it is becoming much more often to make reservations and buy tickets online. This is because it offers them a lot more convenience. All in all, it gives you a clear idea about market segmentation online shopping.
What Triggers the eCommerce Market Growth of the UAE?
There are multiple varied aspects of empowering e-commerce growth in the UAE. Check out some of the reasons.
- Business Convenience:
There are quite a few countries across the Globe that are as motivating of entrepreneurship & start-ups as the UAE. Its several business-friendly regulations are developed by a quite progressive government. These policies provide the residents with a fertile environment for young and new e-commerce companies to thrive & grow. Besides, UAE has been victorious in appealing to global quality labor as well as talent at internationally competitive prices.
- Growth of Internet Technologies and Mobile:
This country has generally displayed amazing acceptance towards the web and mobile devices. Moreover, UAE is the topmost when it comes to international smartphone penetration. This way, its residents know the latest market trend of online shopping. Hence, internet and mobile technology’s proliferation has been a main contributing feature towards the e-commerce growth in UAE.
- New e-commerce Investments:
Recently, a lot of other start-ups and FDIs in e-commerce have also significantly contributed to e-commerce growth in UAE.
Check out this list of top 10 e-commerce sites in UAE in 2020 –
- Current Strong Retail & Business Setups: Businesses in this country are helped by many modern and efficient technical and infrastructural implementations. These executions facilitate transactions, deliveries, and trade. The connectivity, trading establishments, and advanced logistics are the foundations upon which the contemporary technology-driven firms have found exceptional growth.
According to the figures, almost 135 e-commerce sites are functioning in the country. The e-commerce growth in this country is a part of a series of bigger alterations. This shapes the region and the country as a whole and that is why the UAE has an impressive online shopping market share. As compared to the other nations, e-commerce buyers in this country contribute the least percentage towards the entire GDP. It means that still there is plenty of untapped potential for e-commerce in this country. Both expatriate and local, the Emirati populace is one of the most active and digitally connected online purchasers across the world.
E-commerce has been among the most rapidly growing businesses in the Middle East. Meanwhile, UAE has a few of the most thrilling online buying figures in the region. Yes, lack of trust and economic uncertainty in online payments has currently been decreasing the e-commerce speed. Also, it has reduced the value of the online shopping market in Dubai. However, e-commerce’s value is assumed to continue increasing steadily at high rates over the upcoming years. The start-ups can anticipate smart, young, and tech-savvy audiences in Dubai looking for ethical and trusted businesses offering top-quality products.