The Emirate of Dubai and the UAE ranked first in the list of fastest-growing e-commerce markets in the Middle East and North Africa. This came on the sidelines of the UAE e-commerce report, the fruit of the cooperation between Dubai's economy and Visa. The report shows that the UAE has matured both by consumers and traders, thanks to continued innovations in digital adoption, growing numbers of technology-savvy consumers, and the favorable environment that is driving the growth of emerging companies in the UAE and the emirate of Dubai specifically .
The UAE is the most developed market in the Middle East and North Africa, which is itself one of the fastest growing e-commerce markets in the world. The UAE's e-commerce is expected to reach AED 59 billion in 2019 and achieve a growth rate of 23% The government's adoption of e-commerce payments on platforms, such as Dubai Smart City, along with the phenomenal growth in other categories, such as fast service restaurants and transport, is the main driver of e-commerce in the UAE. On top.
The UAE's remarkable growth in e-commerce is largely attributed to retail and shopping mall culture, as well as the role played by Dubai's economy in supporting and licensing e-commerce sites, which makes it easier to do business, as well as procedures for monitoring websites. Enhancing consumer confidence in safe purchasing.
The report showed that 63% of Internet users in the UAE shop online, and that the growth of e-commerce in the country amounted to 31% over the past 12 months, compared to a 7% increase in direct traditional transactions. The proliferation of the Internet, coupled with the availability of advanced digital infrastructure, and an increase in the population of younger age groups, who want to adopt solutions based on technology available through smart phones and social media, are factors supporting the growth of e-commerce in Dubai and the UAE.
Retail sales in the UAE, including virtual sales, reached AED 202 billion in 2018 and are expected to rise to AED 234 billion by 2023 with virtual sales. Online shopping is forecast to grow by 78% . Online retailers and shopping malls in the UAE offer a shopping experience and multi-channel payment options, which also helps grow e-commerce.
The report draws on a comparison between the UAE on the one hand and mature and mature markets on the other, based on the latest data from Visa, to identify indicators that help guide the broader e-commerce system, which includes government, investors, business people, retailers and owners To develop and adopt a multi-faceted action plan. Standardized markets in this study include: USA, Canada, UK, Sweden, Australia and Singapore, while emerging markets include Brazil, South Africa and Malaysia.