Probably the most significant of all recent developments in the business world in UAE would be the growth and development of e-Commerce, and so is e-commerce website development in Dubai.
A recent study by the Dubai Chamber of Commerce and Industry forecasts a $27 billion sales generation through e-Commerce in 2022 as almost 100% of the UAE market population have mobile phones with internet access. UAE is currently the most advanced e-Commerce market in the Middle East with an estimated growth of 46% in the same. This impressive rise may be directly linked to a few factors, with the major ones being the Covid-19 pandemic, and the favourable business investment support UAE has developed in recent years.
In this blog, we present a few facts about the future of e-Commerce in the UAE.
The urgent need to innovate and transform in the digital age cannot be overlooked, with the global pandemic favouring this fact even more. The unparalleled adoption of e-Commerce development in Dubai and other regions in the UAE was a direct effect of the ‘new normal’ situation. Concepts like social distancing, lockdowns, and the reduced numbers allowed at the retail outlets, all contributed to the huge rise in e-Commerce licences issued in the UAE. It also opened doors of endless opportunities for budding entrepreneurs and investors to take their businesses to next level of success.
The future of e-Commerce in the UAE
In UAE, most local businesses and physical stores are now shifting to an e-Commerce way of growing and establishing their business. Many of them have either collaborated with e-Commerce giants like Amazon or developed their own online stores to level up their sales.
Will virtual shopping overtake destination shopping?
While customers still continue to enjoy the concept of ‘destination shopping’, the aspect of physically visiting the store, Covid-19 had forced many people to try e-Commerce. This trend in online users is not expected to fall in future. Preliminary studies suggest that this trend will continue to follow even after the pandemic has subsided.
The implications of online shopping are significant in today's world. Shoppers can now put on their headsets and experience the in-store atmosphere from the comfort of their couch. The past few months have witnessed an outstanding level of innovations with more retailers using technology and helping their online customers visualize themselves trying out their in-store products.
So, why would customers not choose the thrilling experience of e-Commerce?
Factors that boost e-Commerce growth in the UAE
Due to its geographic and economic landscapes, UAE is all set to take full advantage of the growing e-Commerce industry. Although Covid-19 had accelerated the process, a few other factors attract new entrepreneurs and investors alike to the UAE:
1.The strong support system that the UAE Government provides for entrepreneurial activities.
2. The promotion of digitized transactions and a cashless economy through Govt initiatives.
3. Business incubators for budding entrepreneurs
4. Online customers’ trust in e-payment gateways and the quality of products on e-Commerce platforms have increased.
5. DMCC (Dubai Multi Commodities Centre), Dubai Internet City, and UAQ FTZ offer cost-effective e-Commerce packages and great infrastructure facilities for their clients.
6. The purchasing power of inhabitants has improved over the years and they are satisfied by the services offered by e-commerce firms.
7. The business-friendly environment of the UAE is the most welcoming factor for e-Commerce giants from developed countries like US and UK to establish here.
Some of the world’s most trusted e-Commerce companies have set up their establishments in the UAE Free Zones. Amazon, eBay, Namshi, Deliveroo, and Aido are just a few to name.The Dubai Commercity, an e-Commerce Free Zone in Dubai, is the first of its kind- a leading free zone, dedicated exclusively to e-Commerce development. Their services include fulfilment, warehousing and last-mile delivery, e-Commerce strategy consulting, Customs consulting etc.
