UAE has fastest-growing e-commerce market in the world

The UAE has the fastest-growing e-commerce market in the world, a recent Statista report reveals.

Outpacing South Korea and Argentina, the UAE’s e-commerce sector is projected to hit $27 billion this year due to the rapid mushrooming of Dubai-based SMEs.

The e-commerce sector in the UAE is set for a further boom as more retailers are shifting their focus to online services in the aftermath of Covid-19, experts say.

At this rate, the UAE’s e-commerce will join the ranks of formidable economic powerhouses like the US and China. The trend is spurred by high-net-worth investors who are willing to set up their businesses in the Emirates.

Among other contributing growth factors are rising internet penetration, increasing incomes, strong presence of international players and efficient adoption of digital payment solutions.

The UAE is forecast to boost its e-commerce spending by an extra 22.32 per cent this year, to reach the desired target of $8 billion in online sales value by 2025 from $5 billion recorded last year.

E-commerce sales in the UAE were estimated to grow by an average of 23 per cent a year between 2018 and 2022, according to Statista.

The UAE’s e-commerce spending is also expected to account for 7 per cent of the total retail spending this year.

A report by Research and Markets projected that the Middle East’s e-commerce market would grow by 22.38 per cent annually to reach $104.1 billion this year.

“This, coupled with growing incomes, high possessions of smartphone devices, increasing presence of global players, and enhanced supply chain solutions, has supported the market growth over the last two years.

“While the country has been a cash-dominant society in the past, the global pandemic outbreak has forced consumers to quickly adopt digital payment methods,” said the report.