Dubai and the UAE ranked first in the list of the fastest growing e-commerce markets in the Middle East and North Africa region in the UAE e-Commerce report issued by Dubai Economy and Visa International.

According to the report, 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, By 23% per annum during the period from 2018 to 2022.

The government's adoption of e-commerce payments on platforms, such as Dubai Smart City, and the phenomenal growth in other categories, such as fast service restaurants and transport, are the main drivers of the UAE's e-commerce market.

Retail sector

The strong growth of e-commerce in the UAE is largely attributed to the retail sector and thriving shopping mall culture, as well as the role played by Dubai's economy in supporting and licensing e-commerce sites and procedures for web site monitoring, The report showed that 63% of Internet users in the UAE are shopping online, and that the growth of e-commerce in the country has reached 31% over the past 12 months, compared to an increase of 7% in traditional transactions directly.

According to the report, retail sales in the UAE, including virtual sales, reached 202 billion dirhams in 2018 and are expected to rise to 234 billion dirhams by 2023, with virtual sales. Online shopping is forecast to grow by 78%.

Transparency and impartiality The Dubai Economic Partnership (DEA) and Visa represent a synergy between the public and private sectors, in line with the leadership strategy to expand the network of dialogue between the Government of Dubai and its partners to achieve sustainable development and enhance business competitiveness in the UAE. And the Emirate of Dubai in particular.

He added that the Dubai economy is working on the launch of reports with transparency and impartiality, as well as the provision of value-added services.

"The UAE e-commerce report shows the most important aspects that consumers prefer and the extent of investment in technical entrepreneurship that will accelerate the smart transformation in Dubai and the UAE. We are delighted to continue our partnership with Visa because of its global payment solutions that help us identify the latest trends in e-commerce and know what consumers prefer, which will accelerate Dubai's development as a smart city. "

He stressed that the strategic partnership between the public and private sectors, the adoption of best practices and the promotion of consumer confidence in e-commerce are key factors in maintaining the leadership of e-commerce, pointing out that Dubai plays a pivotal role in supporting and setting up electronic retailers platforms. Dubai.

Digital payments

"The development of the UAE e-commerce sector offers tremendous opportunities to drive economic growth and enhance the benefits of digital payments to residents and businesses in the UAE," said Marcello Barricordi, Visa General Manager for the Middle East and North Africa.

He added that government policies that encourage innovation in an environment that ensures equity and equality for all and enable them to launch constructive dialogues encourage us to continue these efforts. .

Prevalence rate

According to the report, the UAE ranked first in total sales growth and e-commerce penetration rate of 4.2% in 2018, surpassing the GCC countries by 3% and the Middle East and North Africa by 1.9%.

The report states that consumers prefer e-commerce channels in the UAE at almost equal to mature mature markets. The UAE also maintains the average volume of transactions compared to emerging markets and mature markets. The average volume of e-commerce transactions in the UAE is AED 528, Mature markets, and AED 95.4 in emerging markets.

Government payments

According to the report, government payments dominate e-commerce in the UAE, where 60% of Visa's government transactions are under e-commerce between March 2018 and February 2019. Educational and government payments accounted for 38% of e-commerce transactions in the UAE UAE for the period from March 2018 to February 2019, an increase of 25% over the same period of 2016 and 2017. Increased consumer adoption of food delivery applications and transportation applications helped increase its share in e-commerce from 1% to 2% during the same period.

Mergers and Acquisitions

The report points to the growth of M & A activity, which is a major attraction for global e-commerce giants and innovators in the industry, citing Amazon's acquisition of Souq.com and Ober over Karim. Improved logistical support, especially transit cargo in Dubai, will be a key driver of e-commerce growth in the UAE.

Dubai Internet City has created an enabling environment for entrepreneurs and startups to promote the next big wave of ICT innovations, for example, Karim and Amazon.com, based in Dubai Internet City, the report said.

Mature and emerging markets

Standardized markets in the study include: the United States, Canada, the United Kingdom, Sweden, Australia and Singapore, while emerging markets include Brazil, South Africa and Malaysia.

• AED 59 billion e-commerce volume expected in the UAE during 2019.