UAE National Day is just around the corner and in 2019 there’s a lot to celebrate, especially when it comes to ecommerce. As the industry continues to make gains around the world, customers are experiencing unprecedented access to consumer goods and services. For businesses, lower costs and wider audiences are unlocking opportunities that would have seemed impossible just a few years ago.
Ecommerce is on the rise and when it comes to the MENA region one country is leading the rest, The United Arab Emirates. With ecommerce transactions in the UAE forecast to total $16 billion (Dh59 billion) in 2019 and grow 23 per cent annually between 2018 and 2022 there’s no denying that the UAE now represents a full fledged ecommerce market. This year to celebrate National Day, we’re looking at what sets the UAE apart from other countries in the region and why these trends have lead to such rapid growth in their ecommerce industry.
Trust in digital payments and Increased Security
Striking a balance between frictionless customer experience and strong security is a critical aspect of building a successful ecommerce industry and the UAE has made strides in this regard. A recent Visa-DED security survey that examined consumer perception of digital payments and online shopping showed that 66 per cent of respondents trust online shopping and 70 per cent trust online payments.
This is in no small part to the banks and payment providers across the UAE that have continued to enhance security for online transactions. For years they’ve been investing in the infrastructure needed for a modern economy and in 2019 this investment is beginning to pay off.
A Population That’s Ready for Cashless
From a distance, the UAE might look like its a long way off from cashless with 75 per cent of all transactions still made using cash. Upon a closer look however, you’ll see that the country has already laid down strong foundations to go digital and ranks first amongst the regional economies most rapidly moving away from cash.
Progressive Government Policies
Proactive government policies play a critical role in building the right environment for ecommerce to thrive and the UAE leadership has largely succeeded in this regard. UAE policies are focused on building a digital culture and eliminating many of the barriers faced when transitioning to a cashless society. In fact, digital commerce and cashless payments were identified as top government priorities in UAE Vision 2021.
It’s clear that the UAE is making rapid strides as the fastest growing ecommerce market in the Middle East. With a synergy of consumer trust, infrastructure investment, and progressive policy the country is poised to fully capitalize on the next decade of ecommerce growth.