Expectations to exceed 29.38 billion dirhams in 2025
EZDubai: AED 18.36 billion, total e-commerce in the UAE
Mohsen Ahmed: "The growth of e-commerce in the region motivates us to make its market in the UAE a global power."
A recent report launched by EEZ Dubai, the fully dedicated e-commerce district in Dubai South, in partnership with Euromonitor International, the global provider of business information, research, market analysis and consumer insights, confirmed that the e-commerce sector in the UAE will continue to grow during 2021.
According to the report, the total e-commerce grew in 2021 to reach more than five billion dollars (about 18.36 billion dirhams), at a time when the total is expected to exceed eight billion dollars (about 29.38 billion dirhams) in 2025.
Based on the report’s findings, 75% of survey respondents made regular online purchases during 2021 compared to 2020. The fastest growing sectors from 2021 to 2025 will be gadgets, home furnishings, food and beverages, and media products. .
According to the report, the countries of the Middle East are in a strong position to further develop e-commerce, thanks to the high per capita GDP and the spread of the Internet.
The UAE and Qatar come at the fore, with a per capita GDP of more than $40,000, and an Internet penetration of more than 90%, while the two countries have succeeded in implementing fiber-optic projects to homes, and they have the highest active subscriptions to mobile broadband in the region.
Although the Middle East and North Africa region mostly depends on the cash economy, after the “Covid-19” pandemic, consumers quickly switched to credit cards, thanks to the increasing confidence in their use, as credit cards are the preferred method of payment in the UAE, according to the report. same.
The report stated that consumers in the UAE are buying from cross-border retailers, to obtain a wide range of products, to search for lower prices, or to purchase high-quality products that are not offered locally, noting that the UAE also enjoys reasonable shipping costs for consumers who are looking forward To purchase from outside the region.
The countries from which consumers buy in the UAE include: the United States, India, and China, mostly related to clothing and shoes, in addition to beauty and personal care products.
In turn, cross-border e-commerce has seen a rapid increase from 23% of total e-commerce sales in 2019, to 26% in 2021, and the proportion is expected to rise to 32% in 2025.
The report emphasized that the region is one of the active destinations for attracting local and international investments in the e-commerce sector, indicating that due to the current pace of developments, and the increasing preference of consumers to deal with electronic retail activities, the region will witness a growth in the sector of more than $18 billion, in absolute terms during the period. From 2021 to 2025, to reach more than $49 billion in 2025.
Mohsen Ahmed, Executive Director of the Logistics District in Dubai South, said that the growth of e-commerce in the UAE and the region motivates us to work more closely with dealers in the sector to enhance it and make the e-commerce market in the emirate a global force.
He added: "Continuous government support, and the availability of our services and solutions to help customers achieve their goals, are among the main factors for the advancement of the sector, at a time when we will continue in (ez. Dubai) our endeavors to meet the increasing demand resulting from the growth of e-commerce and the spread of the Internet."
In turn, Hussain Dogan, General Manager of Euromonitor International in Dubai, said: “The launch of the second e-commerce report in the Middle East and North Africa is based on a number of factors, the most important of which is the growth of the e-commerce sector exceeding $31.7 billion in the region in 2021. ».
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