The year 2020 is hailed as the year of online shopping in the UAE. The e commerce markets of UAE have been slowly and steadily gaining momentum which clearly indicates its path in the time to come.
The forecast of overall e commerce market transactions of UAE is estimated to be about 16 billion dollars and at the same time it is expected to grow about 23 percent annually till the year 2022 starting from the year 2018.
Top 7 reasons why UAE is the region’s Fastest growing E-commerce Market
Now, here are the seven major reasons as to why the UAE is the fastest growing e commerce market of the region.
1. Extremely High Digital Penetration
With the turning of the world into additional connected and the trust of the consumers on online searching readily evolving on a regular basis, it can be necessarily believed that the consumers pay via online retail platforms which in turn can see a vital growth within the returning years.
The residents of UAE are among the highest ten globally involved in terms of the outlay time on the web as well as social media which averages to about 7 hours and 54 minutes daily as per the studies.
2. Increasing Use of Mobile Wallets
Online shopping in UAE is becoming increasingly common and so is the use of mobile wallets. The use of mobile wallets within the UAE has accrued with some of the giants of the world such as Google Pay, Apple Pay Samsung Pay and a number of others are simply getting into the fray at the side of all of the UAE’s native players such as Beam billfold, Etisalat billfold and also a number of other native banks.
3. Digital Natives
The population of UAE comprises of about 30 percent of digital native millennials who are born between the years 1981 & 1996 and a growing Gen Z born between the years 1997 & 2012.
These digital natives are connected at all the times and seek on demand and near-instant solutions. Their wish for fast as well as convenient online shopping experiences is expected to enhance the uptake of online shopping in UAE.
4. Intent of the Government
Proactive policies of the government of Dubai have been playing a crucial role in the building up of a digital culture in the UAE thereby eliminating a number of barriers in becoming a cashless society. Digital commerce as well as cashless payments were identified as the top priorities of the UAE government in UAE Vision 2021.
The government has implemented a huge number of initiatives for effectively supporting the same, such as the wage protection system. With the Smart Dubai 2021 initiative of the government of UAE, it is actually a step towards digitalisation.
5. Increasing Trust in Digital Payments
The people of the nation of UAE has shown an increasing trust in the digital payments which in turn is quite vital in the enhancement of the overall e commerce market.
The recent studies show that people are increasingly inclined to online shopping in UAE and they also show a significant level of trust in the digital payment options. This in turn has helped to increase the possibilities for the merchants, financial institutions as well as the consumers just enormous.
6. Logistics Greatly Improved
At the time when the customers opt for online shopping in UAE, they expect their chosen items to be delivered within a limited frame of time. Thus, logistics is of immense importance and can play a crucial role in the overall e commerce market. Very luckily, UAE is a focal point for distribution.
With its low logistics costs and fantastic infrastructure, UAE is undoubtedly an ideal place for e-commerce to thrive. UAE enjoys a great advantage as a major global trans-shipment hub with the port of Jebel Ali and the Dubai International Airport which is basically the sixth busiest cargo airport in the world thereby providing a high standard of logistics.
Thus, an improved logistics necessarily plays a crucial role in increasing the growth of e commerce market in UAE.
7. Digital Shopping Opportunities Increasing
The digital shopping opportunities have been readily increasing which helps UAE in becoming in one of fastest growing e commerce in the Middle East. There are a number of new digital merchants coming up which increases the opportunities of growth of the e commerce markets.
Thus, it can be quite clearly understood as to why UAE is undoubtedly the quickest growing e commerce markets of the region.