Dubai Economy: $ 5 trillion in global e-commerce in 2021

28% of the retail sector’s contribution to Dubai’s GDP

The business environment in Dubai and the UAE encourages investors to establish their own e-commerce business.

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Dubai Economy stated that the retail sector in the emirate is considered a driving force for the economy, as it is a key factor for tourism and the local community, pointing out that the sector contributes 28% of the GDP and constitutes 22% of foreign direct investment.

A study issued by Dubai Economy set the rate of global e-commerce growth of about 20.7% in 2019 to reach $ 3.535 trillion, but global e-commerce is expected to approach five trillion dollars in 2021, although the growth rates decreased at the beginning of The year 2020. The study said that e-commerce sales during the Covid-19 pandemic led to a shift in revenues across industries and changes in electronic spending behaviors for products and services.

Middle east

And she stated that when looking at the Middle East and North Africa region, the total market size for e-commerce is expected to reach about 48.6 billion dollars in 2022, which will be a significant increase from 26.9 billion dollars in 2018, with an annual growth rate of 25%.

Compared to global markets, the Middle East and North Africa region is the fastest growing region in the world of e-commerce.

The study indicated that the business environment in Dubai and the UAE encourages investors to establish their own e-commerce business, which will contribute to the federal and local economy.

Companies such as "Amazon", "Noon" and "Namshi" developed their presence here in Dubai, as their presence completely covered the production cycle of the business, which covers the source of goods, distribution, logistics and warehousing services, and this led to the continuity of attracting consumers locally, regionally and internationally. To these sites.

Retailers

She said that traditional retailers are adapting to digital transformation by partnering with e-commerce companies or launching their own electronic platforms on the Internet, to maintain their competitive advantage.

The massive threat of e-commerce has forced traditional retailers to adopt new business models powered by transformative and integrative digital technologies.

And in many retail brands, the trend is to move to "phy-gital," a paradigm integrating the digital experience with the store.

For the Dubai community, selling on social media, also known as social selling, is rising at a rapid rate with the help of social media platforms, such as Instagram and Facebook, which provide the platforms needed to display products and sell them to the community on social media platforms.

The study said that Dubai has become a global center for e-commerce, thanks to its strategic location and infrastructure for doing business, with a good base of emerging e-commerce companies and global merchants, as Dubai attracts more e-commerce activities.

The study called on all international merchants and related e-business services to establish their e-commerce activities in various locations in the emirate.

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