Future of eCommerce industry in UAE

RSI Concepts.AE — Tue, 28 Jul 2020 05:02:59 +0000

The future of eCommerce industry in UAE is very promising. In fact the year 2019 was the year with rapid expansion in eCommerce and since the beginning of 2020, most of the retails have shifted to eCommerce. The massive digitalization, internet access for more than 90% of the population and current scenario contributed a lot in the eCommerce revolution. Another thing is the payment security, anti-fraud measures and government’s policies are the key factors to build up trust in the eCommerce sector. The UAE has emerged as the most paying per individual country in the MENA region and it is all because of the customer protection policies, and security standards implemented by the government of the United Arab Emirates.

The population of the United Arab Emirates

A large part of the population in UAE comprises of the digital-native millennial generations, who always prefer to stay connected and need on-demand based instant solutions. Which also cause a continuous growth in the online shopping and eCommerce industry over the last 5 years. Another important factor was the rise in the electronic transactions, like online banking, online payments, debit/credit cards and eWallets. These all contributed and supported the eCommerce sector in UAE.

Proactive and Supportive Government Policies

Due to the proactive and supportive government policies, there are so many eCommerce platforms flourished over the past few years and form a very competitive consumer-friendly eco-system. This is also another reason for such unprecedented growth in the eCommerce and online shopping. The banking and financial system of the country is also very supportive for both eCommerce businesses and the consumer too.

The Logistics

Along with all that, another most important sector which supported the eCommerce industry in UAE is the logistics. The United Arab Emirates is the most developed country in terms of modern infrastructure and the network of roads and highways. So, logistics was not an issue at all. Amid the recent crises, most of the popular eCommerce online shopping sites have started offering same-day delivery services which can only be done if the logistics and transportation sector is supportive. This is another reason the eCommerce businesses and startups are very confident in operating in the country.

Banking Sector

Moreover, the banking sector was also very supportive and all the banks in the country have implemented modern technologies and payment processing protocols to support online transactions. Now the eCommerce businesses and merchandisers can team up with so many different banks and online payment processing networks simultaneously. This results in a very healthy and competitive environment which directly benefits the consumers by lowering down the transaction fee and other costs.

Conclusion

The modern infrastructure, massive logistics and transportation networks, online payment security, supportive financial sector, government policies, consumer protection measures, internet availability and high buying power contributes in the rapid growth of the eCommerce sector in UAE. As the current stats suggest the eCommerce and online shopping sector will keep growing and the future of the eCommerce industry in UAE is brighter than any other conventional eCommerce market such as the US and China. If you want to invest in the eCommerce sector this is the time to jump in. If you are already a merchant or trader you should take the ride too because all the projections are suggesting that in coming future the eCommerce will definitely overgrow the conventional retail sector.