Accounting for 36%, e-commerce will become the key driver of the development of the UAE retail industry

The UAE has always been one of the countries with the best e-commerce development in the Middle East, and it has shown rapid development under the influence of the epidemic. The Dubai Customs General Administration said that the scale of e-commerce in the UAE is expected to reach US$27 billion in 2022. According to ReportLinker data, the scale of the UAE retail market will reach US$75 billion by 2025 .

According to these two data, the e-commerce market already accounts for 36% of the retail industry, and the scale of e-commerce in the UAE will undoubtedly grow even more by 2025 , and its share will also be even greater. With the development of e-commerce, the UAE e-commerce market will become a key driving force for the growth of the local retail industry.

Although many UAE retail companies were hit hard by the pandemic last year, most of their business has now returned to normal. Kalika Tripathi, head of marketing for the Middle East and North Africa region at Visa (MENA) , said that a Viso survey of UAE companies showed that as many as 90% of the companies surveyed expected business to return to normal in 2021.

The only constant is constant change. Nour Sleiman, co-founder and chief marketing officer of Cartlow, said that the pandemic has caused more and more retailers in the UAE to transform their business models to e-commerce . Visa's survey also showed that nearly 60% of businesses in the UAE are adapting to the changing market environment. 41% of businesses said they plan to increase investment in digital payment technology in 2021.

The epidemic has also changed consumer behavior. PayBy (Abu Dhabi fintech company) found that under the epidemic, most consumers in the UAE have turned to non-cash payments, believing that this is a more hygienic, safer and more secure option. PayBy's survey showed that 72% of respondents used non-cash methods to pay for groceries. The CEO of Noon, a Middle Eastern e-commerce platform, also said that due to the impact of the epidemic, the proportion of cash payments on the platform's orders has dropped significantly.

Sleiman said this change will continue. She also said that simply moving online will not be enough to meet consumer needs in the future. Improving consumer experience and paying attention to consumer needs will be the focus. Using digital, data-driven technology to actively respond to consumer needs will be the key to retailers' success.

middle East