E-commerce is not new, but the widespread acceptance it has gained over the past few years is remarkable. A survey data released by Statista shows a significant growth in E-commerce sales year after year, highlighting the growing dominance of online shopping in the United Arab Emirates. In 2015, the value of E-commerce sales in the UAE was around 5.05 billion U.S. dollars, while the same jumped to a whopping 19.77 billion U.S. dollars in 2020. As the sales are estimated to grow by 23% (on average) per year between 2018 and 2022, the sale figures for 2021 and 2022 are forecasted at 23.35 billion U.S. dollars and 27.08 billion U.S. dollars, respectively. These figures bear testimony to the growing impact E-commerce has in the region and gives you a sneak peek into this sector’s promising future.
When most industries were experiencing a decline due to COVID-19, E-commerce was among the fewest sectors to experience massive growth. As lockdowns made people stay in their homes, the relevance of online shopping was felt on a larger scale. The E-commerce sector in UAE is expected to be the future of retail, and you should consider being an active player in this evergreen domain.
The significant growth seen in the UAE eCommerce market in recent years has been possible due to the increasing consumer demand, merchant distribution model innovation, venture capital funding, utilizing improving logistical capabilities and government policies have all been focused on driving the UAE eCommerce market at pace.
The COVID-19 pandemic has further accelerated retailers’ innovation and digital transformation plans, in response to the sudden consumer demand to shop online. With the country comprising a high percentage of digital-native millennials who are at ease with technology, the expectation is for seamless and convenient online purchasing.
UAE is a part of the Arab Union for E-commerce established in 2016 and is aimed towards promoting E-commerce in the region. For this, the UAE government has made changes in labor legislation that now allows companies to smoothly run E-commerce activities in free trade zones. Efforts were also made to improve export, supply processes, and pricing. As the local government is working in tandem with E-commerce players to ease the process of doing business, you can be confident that the future is bright for everyone involved in this sector.
As people get comfortable with shopping online, traditional brick-and-mortar retail is still very strong in the UAE, these retailers have acknowledged the need for a dual face-to-face and online strategy with a focus on customer experience.
Besides the retail sector, E-commerce will also create endless opportunities for players in the logistics arena, as more orders will translate to demand a skilled and experienced workforce for managing and delivering the orders. As more people become interested in joining the E-commerce bandwagon in the near future, entering the market may become a little difficult due to the then competition. If you want to join this sector as an active player, now is the best time.
Starting a business without full knowledge of the local laws can land you in big trouble. If you only want to focus on growing your business while allowing a professional to take care of the legal complexities, business incorporation, employee hiring and training activities, and other vital tasks. At Zenesis Corp, we have a pool of talented professionals from different areas that will guide you through the entire process from start to finish.