On account of the Covid-19 outbreak, consumers had to rapidly shift to cashless payments and online shopping which resulted in a rise in e-Commerce activities in the United Arab Emirates (UAE). Apart from the role of the pandemic in this transition, some other causes for the surge in e-Commerce activities in the UAE are:
- Total government support for entrepreneurial activities, foreign investments, and trade.
- Introduction of online payment platforms and the ease of use.
- Improvement in logistics infrastructure.
- High digital penetration.
- Increase in the number of online users and reliability of online platforms.
Additionally, due to its geographical location and prosperous economy, the UAE is well-positioned to profit from the booming e-Commerce sector. Also, Dubai is regarded as a gateway to the rest of the world and has one of the biggest and most technologically advanced logistics infrastructures in the world.
All these factors make UAE the e-Commerce leader in the Gulf Cooperation Council (GCC) and one of the fastest-growing e-Commerce market in the world.
The importance and the increase of e-Commerce activities can be easily mapped through the chart below.
Source – Statista
e-Commerce sales have been taking constant giant leaps starting from 2020. Moreover, the year 2020 brought lockdown and social distancing protocols that led to an instant surge in the registration of online business licenses. In just the first few months of that year, the consumer demand for online business services increased a great deal. By 2025, the UAE market’s population is expected to have access to the internet and mobile devices at a rate of about 100 percent, according to the Dubai Chamber of Commerce and Industry.
With consumers prioritizing their satisfaction in the products and services they purchase, the e-commerce industry continues to grow faster. Since the pandemic, the use of online payment apps has also increased at many outlets, markets, taxis, theatres, etc. As per the recent data, 30% of the UAE’s population are known as digital natives who have raised the volume of online shopping. The UAE government’s Smart Dubai 2021 initiative to build a robust digital economy is also praiseworthy. UAE is certainly growing at a rapid pace to explore the exclusive potential of the e-Commerce market.
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