Study: worth more than 6000 dirhams per person

The UAE records the highest annual rate of online shopping in the region

• E-commerce is expected to hold a larger share of total card payment transactions in the country during 2020. Archives

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A joint study conducted by Dubai Economy, in cooperation with the international company "Visa", revealed that 49% of consumers participating in an opinion poll conducted in the UAE have become more popular for online shopping since the start of the Corona pandemic, indicating that the UAE recorded the highest rate An annual spend per shopper in the Middle East, North Africa and South Asia, at a value of 1648 dollars (about 6050 dirhams) per person.

The results of the "Stay Safe" survey, conducted by Visa in partnership with Dubai Economy and Dubai Police, last June, showed that 61% of respondents said that they prefer to pay for e-commerce purchases using digital cards or wallets instead of cash on delivery. Considering that the increased confidence in the levels of safety, speed and convenience provided by contactless payments, were among the most prominent factors behind consumers' increasing preference for online payments.

Continuous growth

The study, titled 'The E-Commerce Scene in the United Arab Emirates 2020,' predicts that the e-commerce sector in the UAE will achieve continuous growth during the coming period, coinciding with the increasing consumer demand for electronic payment options, and the merchants ’awareness of the need to enhance their online presence during the pandemic. Corona ».

According to the study data, the UAE continues to maintain its leadership in the average volume of transactions compared to mature and emerging e-commerce markets, with the average value of transactions reaching 122 dollars (450 dirhams) between 2019 and 2020, compared with 76 dollars (280 dirhams) in mature markets and 22 A dollar (80 dirhams) in emerging markets.

Support

The study stated that the advanced logistical infrastructure, the proliferation of bank accounts, support for digital payments, the increasing reliance on e-commerce platforms among retailers and government policies that support innovation and entrepreneurial activities are all factors that contributed to driving the growth of e-commerce in the UAE, noting that it was Several initiatives, including the "Mohammed bin Rashid Innovation Fund Accelerator" launched by the Ministry of Finance, have a great impact on the advancement of this sector.

A larger share

As a result of the shift towards online payments, e-commerce is expected to acquire a greater share of the total value of card payment transactions in the UAE during the current year.

When comparing current indicators with previous pandemic readings, the study notes an increase ranging between 19.7% and 21.9% in the volume of electronic payment transactions through e-commerce platforms, indicating that these numbers are likely to increase, as e-commerce payments are expected to stand behind about 28.2% of the total The value of card payment transactions in the UAE.

Increased confidence

In addition, the Director General of Dubai Economy, Sami Al Qamzi, said, “The continuous growth in the shift towards digital payments in the UAE is not only a measure and strong evidence of the efficiency of the infrastructure and the readiness of the regulatory framework in the country, but it is also an indication of the increasing confidence between consumers and customers. And companies alike ».

He added, "Dubai economy has paid great attention to digital payments based on being a major enabler of facilitating business and smart transformation, which would place Dubai in an advanced position as a global and competitive center for business compared to other cities around the world."

Al-Qamzi added: “Today, we are aiming to provide innovative digital solutions to various groups of society, including companies, businessmen and customers. The (Covid-19) pandemic has provided us with valuable insights and ideas about their changing requirements.”

Faster steps

Al-Qamzi stressed that "cashless payments and electronic commerce in general are taking steps faster than expected, and we look forward to translating this unprecedented growth into an opportunity for different types and sizes of companies to develop their presence and presence through cyberspace."

He pointed out that "the main results of the study (The E-Commerce Scene in the United Arab Emirates 2020) will contribute to providing strategic support for our future initiatives aimed at enhancing customer happiness through innovative cashless and contactless transaction solutions.

Strong growth

For his part, Marcello Baricordi, Director General of Visa for the Middle East and North Africa, said, “The digital payments system in the UAE and the MENA region has already witnessed strong growth, but the pandemic has contributed to the acceleration of change and the shift towards this system. We have seen an increasing consumer demand for shopping through e-commerce platforms and the contactless payment system during the closing period. ”

Baricordi expects these behaviors to contribute to establishing new habits that will continue even after the pandemic subsides, in light of the desire of more consumers and merchants to enjoy the benefits of safety, ease and wide options provided by e-commerce.

He added that for these reasons specifically, companies that adapt to this new global reality, by strengthening their electronic presence and adopting digital payments, have distinct opportunities for recovery, prosperity and growth.

Use of cards

The results of the joint study between Dubai Economy and the "Visa" company showed that consumers in the UAE still prefer to pay using credit cards (35% of transactions), while the rates of using debit cards for online shopping increased by more than 7% between 2018 and 2020. It reflects the growing confidence in electronic payment transactions and the maturity in the market.

49% of consumers in the country have become more popular in online shopping since the start of Coronavirus.

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