E-Commerce Growth in the GCC and UAE: Trends and Insights
E-Commerce in GCC and UAE (Stats, Specificity, Leaders – Local and Worldwide)
First, what is e-commerce? In its simplest form, e-commerce is the buying and selling of products and services by businesses or consumers over the World Wide Web.
E-Commerce in the UAE
The UAE leads the GCC in e-commerce growth. In 2015, the number of B2C e-commerce transactions in the MENA region reached an estimated height of $15 billion, rising from $9 million in 2012, according to recent surveys from Frost and Sullivan and web-design company Go-Gulf.
E-businesses constitute one of the fastest-growing sectors in the UAE, with more and more UAE residents and nationals investing in the e-commerce realm.
E-commerce has definitely increased in popularity over the past five years, and more services are being offered on e-business websites and mobile platforms, making the user experience easier and better.
However, e-commerce still has a long way to go to compete with the retail trade, as it is very hard to match the shopping experience in the malls of Dubai. Nevertheless, the growth has been promising and will continue to burgeon.
The Future of E-Commerce in the UAE
The future for e-commerce is bright in the UAE. “We have great internet access across the UAE, the highest smartphone penetration in the world, and as people become more confident in using their credit cards online, it will only get better,”
The UAE government has launched several initiatives to make e-commerce payment gateways for government services easier, making online transactions far simpler than before.
Government Initiatives
The UAE government is leading the way in e-commerce transactions in the country. The Telecommunications Regulatory Authority has created an effective e-commerce environment, while the e-pay gateway allows customers to settle fees for e-government services online on a 24/7 basis in a secure environment. Those looking to pay traffic fines are also able to do so online.
Leading E-Commerce Platforms
The e-commerce leaders in the UAE and GCC are Souq.com and Cleartrip.ae.
Souq.com, the region’s largest online shopping site, and Cleartrip.ae, a leading regional online travel site, are at the forefront of this growth.
The Global Online Shopping Trend
The online shopping trend worldwide is increasing day by day. People are getting busier and find little time to leave their homes, drive a car, get stuck in traffic, and search for brick-and-mortar stores to purchase products. It is essential to shift from traditional shopping to online shopping. It offers many benefits such as convenience, cost savings, comfort, and ease of access.
The emerging economy of the UAE and the influx of tourists globally have made it a congested place. People don’t want to waste their money and time while enjoying a delightful vacation. Although the trend of shopping online in the UAE has been slow, it is gaining popularity day by day.
Impact on the Economy
Moreover, the rising trend of online shopping in the UAE can further fuel the economy and promote many small and big enterprises. Furthermore, the rise in competition among big brands makes it essential to further develop and progress in online retailing. The world has already turned into a global village, and to survive in tough competition worldwide, it is crucial for the UAE to encourage retailers and entrepreneurs to enhance the business landscape.