The Dubai Chamber of Commerce released a study stating the value of the e-commerce business in the UAE is predicted to reach $9.2 billion in 2026. In the UAE, e-commerce sales increased to $4.8 billion in 2021 from $2.6 billion in 2019, as the Covid epidemic hastened the global transition to online buying.
The research, which was based on data from Euromonitor, identified a number of variables that are promoting e-commerce in the United Arab Emirates as well as high-potential growth possibilities. The majority of e-commerce transactions were conducted last year on mobile devices, with smartphones and tablets driving $2.6 billion in retail sales or 44% of the entire e-commerce market value. Over the years 2022-2026, mobile retail sales are anticipated to expand at a compound annual growth rate of 15.6% and reach $4.6 billion.
According to estimates, more than one-third of UAE customers make at least one smartphone purchase per week, which is higher than the global average for weekly online transactions. The tremendous growth is being supported by the loyalty reward programmes provided by online retailers and the pricing transparency provided by mobile apps.
Domestic online shopping sites account for 73% of total sales in the UAE, drawing customers there more than foreign websites. Foreign e-commerce platforms, according to the survey, are anticipated to expand more quickly and earn 34% more market share by 2026. An important element that has increased demand and commercial activity in the UAE’s e-commerce sector has been recognised as improved payment systems and services.
According to the 14th Annual ASDA’A BCW Arab Youth Survey, released last month, the proportion of young people in the GCC who say they shop online has nearly doubled in the past five years, and almost all indicate they do it at least occasionally. With a 34% share of the online shopping industry, electronics have surpassed clothes and footwear (31%), food and beverages (12%), and media products (8%), thanks to consumer love of gadgets. Consumer appliances came in at 3.3% and personal accessories at 5.8% further down the list. According to the Dubai Chamber research, among the product categories offering the most variety with untapped potential are clothing and footwear, personal accessories, beauty and personal care, and home and gardening.
