Mena’s e-commerce sector is expected to generate $57 billion by 2026, according to Middle East’s B2B e-marketplace Tradeling.
Particularly in Dubai, the sector should grow by 12 per cent in the same period.
In a recent interview, president and CEO of Dubai Chambers, Mohammad Ali Rashed Lootah, revealed that Dubai has witnessed a recent surge in the e-commerce market thanks to several key factors, including a 97 per cent year-on-year increase in the number of tourists, which reached 14.36 million last year in comparison with the previous year (2021). I largely attributed this to the resilience of the UAE government which has efficiently adapted d to the changing lost-lockdown landscape.
Another crucial reason is the evolution of retail and e-commerce as Dubai has seen an entry into the metaverse, with stores and malls opening in the Web3 space.
Retail outlets have smoothly adjusted to bridging the gap between the digital and actual world. This trend is continuously becoming the new norm for shoppers in using the internet as their main platform for the majority of their purchases.
The sector has also entered a high-growth era for the entire Mena region, with significant progress in sales, logistics and payments, almost crossing $37 billion in 2022, according to a report by EZDubai. E-commerce revenues were expected to reach almost $57 billion by 2026, growing at a compound annual growth rate of 11 per cent. This pattern is largely attributed to increasing internet and mobile penetration, rising consumer demand for convenience and value, and, lastly, the emergence of innovative business models.
CEO of Tradeling, Marius Ciavola, said: “The region’s focus on innovation while embracing advancements in technology and adopting a digital-first approach has fuelled the growth of the e-commerce sector in the region.
“This is spearheaded by Dubai which is always looking to maximise all opportunities and unlock its full potential across all industries, with e-commerce being one of the main growth pillars. The UAE has always been a leader in accepting and utilising technology to its full advantage and the first step to this was digitalising its economy in 2013, resulting in a continuous increase in the e-commerce sector, as the majority of the population has adopted the idea of a cashless society with all transactions implemented more efficiently without the requirement of a physical presence.
“The sector has been able to grow exponentially during and after the pandemic, and continue to push on this strong momentum with additional support by the rising demand for online shopping and steady investment in the sector’s infrastructure.”
Since its inception, Tradeling, a business-to-business ecosystem, has grown rapidly, registering more than 200,000 registered buyers and sellers from 55 countries.
