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The E-Commerce Market of the UAE Will Be Worth $9.2 Billion By 2026: Dubai Chamber of Commerce

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E-Commerce Sales in UAE

According to recent research published by the Dubai Chamber of Commerce, the value of the UAE e-commerce market could reach $9.2 billion in 2026. The sector’s share of total retail sales in the UAE is predicted to reach 12.6% by that time.

Based on data from Euromonitor, the study highlighted aspects encouraging e-commerce activity and expansion possibilities in the UAE. Total e-commerce sales in the UAE increased significantly in 2021, rising to $4.8 billion, up from $2.6 billion in 2019.

Mobile E-Commerce

In 2021, smartphones and tablets dominated e-commerce. The mobile retail market was worth $2.6 billion, accounting for 44% of the total e-commerce market value.

Mobile retail sales are expected to grow at a compound annual growth rate of 15.6% between 2022 and 2026, reaching $4.6 billion.

According to the study, more than a third of consumers in the UAE made at least one weekly purchase via their smartphone, exceeding the global average for weekly online purchases.

The availability of apps, which has increased pricing transparency, is a key trend that has contributed to the rapid expansion of mobile e-commerce, according to the study.

Online retailers’ expanding loyalty reward programmes increased demand for online shopping in the UAE.

According to the report, UAE consumers preferred local retail websites to foreign retailers. In 2021, domestic e-commerce websites generated an average of 73% of all sales, compared to only 27% for foreign websites.

Based on the study, foreign e-commerce platforms are predicted to grow by 19.2% between 2022 and 2026, representing a 34% increase in market share.

Significant Factors of E-Commerce

The UAE market has undergone a significant change due to investments in e-commerce. Because of increased supply and competition, prices are reducing as a result.

Another significant factor that has increased demand and business activity in the UAE’s e-commerce sector has been identified as the improvement and modernisation of payment systems and services.

Market Share of Online Shopping

With a 34% market share, consumer electronics made up the top-selling online goods in the UAE in 2021. These products primarily include smartphones, phone and computer accessories, tablets, computers, and TVs.

31% went to clothing and footwear, 12% to food and drink, 8% to media products, 5.8% to personal accessories, and 3.3% to consumer appliances.

The prevalence of online shopping for electronics, apparel, accessories, cosmetics, food, and beverages illustrates the heightened competition between online and traditional channels.

More business opportunities in electronic logistics, financial technology, payment systems, and distribution centres should become available as e-commerce becomes more prevalent throughout the nation.

Conclusion

Consumers are the primary force behind the e-commerce market’s increasing importance, and digitisation is at its core. To satisfy the market’s expanding demand for consumption, competition among E-Commerce companies is still fierce. Is it possible that we will witness a time when e-commerce will dominate traditional commerce, just a thought?