E-commerce appears to be booming in the United Arab Emirates (UAE) and is predicted to be worth about DH11 billion to the area’s economy. Author: Deborah Bates
E-commerce appears to be booming in the United Arab Emirates (UAE) and is predicted to be worth about DH11 billion to the area’s economy.
The figure, which equates to approximately £1.9 billion, was published by Visa on TotalDubai.com and accounted for some 55-60 per cent of the online sales reported by the Gulf Cooperation Council (GCC).
A spokesperson for Visa Middle East, Kamran Seddiqi, gave his thoughts on the exciting news. He stated: “E-commerce is without doubt one of the crucial drivers for the world economy and increasingly, the regions.
“With such a significant increase in internet usages, it’s no surprise that the internet is quickly becoming the cornerstone for business and communication, especially as the UAE is such an important financial hub.”
Whilst the growth could be attributed to the area’s obvious financial wealth, it could also be due to the easy-to-use online payment solutions adopted by retailers in the UAE, or the ease with which residents can pay domestic fees via the region’s government’s website. This could well spur on residents to spend even more online, according to another representative of Visa Middle East.
Stephen Leeds revealed on Gulfnews.com: “As consumers become more comfortable with government transactions, they may be more likely to use other e-commerce outlets.”
Although reports have suggested that online shopping is merely in its “infancy” in the UAE, the hopes are that it will continue to flourish well into the future.