“UAE B2C E-Commerce Market 2018” is a new report published by market research specialist yStats.com of Hamburg, Germany. By synthesizing findings from multiple reliable sources, the data-rich report concludes that UAE is well positioned for online retail growth. Between 2017 and 2021, B2C E-Commerce sales in the country are projected to more than double in value.
B2C E-Commerce sales currently account for only a small one-digit share of the total retail market in the UAE, but are projected to more than double by 2021. According to yStats.com’s research, the country’s developed infrastructure, high disposable incomes and Internet connectivity rates, coupled with recent investments of retailers and venture capitalists into E-Commerce, are expected to drive online retail sales at double-digit growth rates over the next few years.
With nine in ten individuals having Internet access and a high smartphone penetration rate, consumers in the UAE are well equipped to embrace E-Commerce. Although online shopper penetration has grown over the past several years, three-quarters of UAE’s population still prefer brick-and-mortar stores over digital shopping channels, according to a recent survey cited by yStats.com. Nevertheless, online retail sales remain on the growth path spurred by evolving market trends such as mobile shopping and cross-border E-Commerce. More than 50% of online shoppers in the UAE purchase via smartphones, and a high double-digit share of Internet purchases is made on foreign E-Commerce venues.
Several domestic and foreign players made substantial investments in this growing market, as yStats.com’s report reveals. Among them, Amazon.com acquired the country’s largest E-Commerce platform Souq.com in 2017, boosting its market share. Multiple store-based retailers improved their online offerings, while also a new market player, Noon.com, has emerged to challenge the incumbents with a USD 1 billion investment.