Online shopping became no longer a trend but a preferred standard of purchasing for an increasing number of consumers.

In the past few years, the United Arab Emirates succeeded in positioning itself as one of the fastest-growing e-commerce markets worldwide. The market’s estimated worth is in billions of dollars, projecting to rise shortly. The country converted towards a digital hub providing high-speed Internet access to its citizens and other factors, leading to online shopping popularity.

Many changes have taken place in the country’s e-commerce market. From business-friendly laws and regulations to the rise of online shopping culture, various factors have led to the speedy growth of e-commerce in the region.

Recent research conveyed by Google shows that the UAE leads the global smartphone penetration rate at 73.8%. In contrast, the country’s internet usage statistics show that 91.9% of the country’s population has access to the Internet.

Hence, mobile penetration across the Gulf Cooperation Council and strong internet connection played an active role in promoting the development of e-commerce in the region.

Online retailers in the region must focus on mobile-friendliness to provide customers with an efficient, convenient, and safe click and shopping experience.

Another critical factor that helps encourage an online shopping culture is customer trust. Lack of trust has always been the reason for the slow growth of e-commerce.

However, this trend is changing. People nowadays are familiar with carrying out online transactions.

Also, online shopping websites are becoming innovative by tracking consumer behavior and trends. Besides, the Covid-19 pandemic and its influence on the global economy proved that e-commerce companies could consolidate their strengths and determine new measures and strategies to maintain business continuity in times of social and economic crises.

 

The future of the e-commerce market in the UAE

 

The current assessment of the UAE’s e-commerce market is estimated to be worth USD 5.3 billion. All the factors mentioned have driven the popularity of online shopping among UAE citizens.

Local businesses and physical stores have also begun to adapt to e-commerce gradually. Many of them have either established connections with e-commerce giants such as Amazon or developed their online stores to reach a broader customer base and increase sales. Currently, many well-known e-commerce businesses worldwide have begun to show a strong interest in the UAE market.

In the emerging online retail space, online retailers will have to offer more than discounts to win and maintain loyal customers. Companies will have to invest in making everyone’s shopping experience as personalized as possible. Same-day delivery and virtual stores are becoming trends that digital retailers in the region must provide quickly.

 

Conclusion

Both local brands and international companies have started to expand in different regions of the UAE. Many of these companies adopt an omnichannel approach and use technologically advanced tools to provide online shoppers with the best user experience. Soon, due to the popularity of smartphones for online shopping in the UAE, it is expected that most e-commerce companies will be mobile-friendly.

The country’s evolving shopping culture is bound to help the local e-commerce environment grow and develop faster. The e-commerce market in the UAE is considered very competitive, as all online stores drag customers with their exceptional transactions and same-day delivery options.

Also, new e-commerce companies are expected to shine in the UAE’s e-commerce market. The business-friendly environment in Dubai and other parts of the UAE has attracted e-commerce companies from well-developed countries such as the United Kingdom and the United States. In other terms, the future of e-commerce in the region is very promising.