The value of the UAE e-commerce market is expected to reach $ 9.2 billion by 2026, while the share of the sector in total retail sales in the UAE is expected to reach 12.6 percent the same year, according to a new analysis by the Dubai Chamber of Commerce.
Based on the Euromonitor data, the Gitex Global was released on 10-14 October 2022 before 2022, highlighting many factors and high potential growth in the UAE. Mobile devices such as smartphones and tablets were responsible for the majority of e-commerce transactions last year, as the mobile retail market reached $ 2.6 billion, which was 44 percent of the total e-commerce market value.
Mobile retail sales are expected to reach $ 4.6 billion in joint annual growth of 15.6 percent over the 2022-2026 period. One-third of consumers in the UAE have purchased a product or service at least once a week using their smartphone, which is above the global average of weekly online purchases.
The study found that the availability of apps, which is one of the major trends that support strong growth in mobile e-commerce transactions, has increased price transparency, and the number of loyal rewards programs offered by online retailers has increased the demand for online shopping in the UAE.
Shoppers in the United Arab Emirates, according to the report, preferred local retail websites to foreign retailers. By 2021, domestic e-commerce websites averaged 73 percent of total sales, while foreign websites received only 27 percent.
Despite the obvious preference for those who use domestic websites, the report said it was increased competition from foreign e-retailers in the future. Between 2022 and 2026, foreign e-commerce sites are expected to increase by 19.2 percent, indicating a 34 percent profit in the market share.
The e-commerce landscape of the United Arab Emirates has grown significantly in recent years with major investments, acquisitions, and partnerships with global companies. Investments in this sector have significantly changed the dynamics of the UAE e-commerce market, with a major impact on the downward pressure on prices due to increased competition and supply.
The development and modernization of payment methods and services have been identified as another important factor in the e-commerce sector of the United Arab Emirates and the boosting of business activities.
Consumer Electronics in the United Arab Emirates created the best-selling online products in 2021 with a 34 percent stake, mainly smartphones, telephone accessories, computer accessories, tablets, computers, and TVs. 31 percent of clothing and footwear, 12 percent of food and drinks, 8 percent of media products, 5.8 percent of individual parts, and 3.3 percent of consumer equipment.
Relatively large stocks of products purchased online indicate increased competition between online channels and traditional channels for electronics, apparel, accessories, cosmetics, and food and beverages. The main product types that provide the most unused capacity in the e-commerce market by 2022: are clothing and footwear, personal accessories, beauty, and personal care, and home and gardening.
Growth is expected to continue in the e-commerce sector of the United Arab Emirates, which is supported by the growing demand for online shopping, and sustainable investment flows in the infrastructure of this sector. The growing speed of e-commerce operations in the country is expected to provide more business opportunities in payment systems, financial technology, electronic logistics, and distribution centers.