SAWT BEIRUT INTERNATIONAL

| 24 September 2022, Saturday |

UAE e-commerce market to reach $8bn by 2025

According to a new estimate, the UAE’s e-commerce sector is expected to reach more than $8 billion by 2025, up 60% from $5 billion in 2021, as customers across the region continue to convert to online retail.

According to a survey by EZDubai, an e-commerce zone in Dubai South, and Euromonitor International, more people in the UAE completed online purchases last year than in 2020.

In 2021, about 75% of those polled stated they would shop online.

​”The growth of e-commerce in the UAE and the Mena [Middle East and North Africa] area motivates us to work harder and closer with our e-commerce companies to grow the industry,” said Mohsen Ahmad, chief executive of Dubai South’s logistics district.

He went on to say that government backing is crucial to the sector’s growth.

Consumers shifted to cashless payments and internet purchasing as a result of the Covid-19 outbreak, which resulted in lockdowns around the world. According to Statista, global digital payments are predicted to reach $8.26 trillion by 2024, up from $4.4 trillion in 2020.

According to the EZDubai research, e-commerce in the Mena area is quickly catching up with global powerhouses like China, with many online shops scaling up their services to prevent Covid-induced interruptions.

The region’s entire e-commerce market is predicted to reach $49 billion in 2025, up from $31.7 billion last year.

Strong internet penetration rates, high possession of digital devices, rising wages, better logistic developments, and the presence of global players in the industry are driving the growth of e-commerce in the region, according to the report.

Homewares and home furnishings, food and beverage, and media products will be the fastest-growing areas in the e-commerce market over the next three years.

Foreign e-commerce, which refers to purchases made by UAE residents outside of the country, is also on the rise, and is predicted to account for 32% of total e-commerce sales in 2025, up from 23% in 2019 and 26% last year.

The UAE, Algeria, Egypt, Iran, Israel, Jordan, Kuwait, Lebanon, Morocco, Oman, Qatar, Saudi Arabia, and Tunisia were among the 13 countries studied.

EZDubai was founded in January 2019 with the goal of attracting online businesses and promoting the emirate’s role as a regional e-commerce powerhouse.

    Source:
  • The National News