UAE Ecommerce Market is Predicted to Grow at a CAGR of 14.6% during 2021-2026 -Makreo Research & Consulting

UAE is one of the emerging regions across the world. Due to the diverse population, the demand for eCommerce platform is rising. In UAE, particularly Dubai, the eCommerce growth has been tremendous in the MENA region. The expansion of digital purchasing has been pushed by changing consumer habits during Covid-19. The increasing purchase from cross-border and cheap shipping costs for consumers is anticipated to grow the market. Lately, Amazon.ae stated that users in the UAE would continue to enjoy free next-day delivery on orders over a certain threshold, as well as paid same-day delivery to certain localities in the UAE.
On the other hand, numerous major elements will aid expansion, including the UAE's high-income potential, high Internet penetration rate (99%), robust transportation logistics network, advanced digital payment systems, expanding tech-savvy youth population, and strong government support.
Steep Rise in E-commerce Licenses
UAE and particularly Dubai, remain eCommerce growth centres in the MENA area. According to the UAE National Economic Register, the UAE eCommerce industry issued the most licenses in May 2020, totalling 196.
Positive Impact over 3PL Industry
COVID-19 has given boost to e-retailing and simultaneously created demand for logistics of which 3Pl service providers are benefitting the most as the companies foraying into eCommerce business are not equipped with logistics supply chain therefore 3PL service providers are able to settle the losses incurred in 2020 and predicted to enjoy high demand in Dubai as country's geographical location and developed infrastructure makes it key market for other GCC regions.
Impact of Covid-19
The outbreak of the virus had a positive impact over the UAE eCommerce Market. The epidemic has boosted e-grocery significantly. It is still the UAE's fastest-growing eCommerce segment, rising times as efficient as the region's entire eCommerce market. Numerous new players have emerged since the shutdown, ranging from food delivery apps that now sell groceries to Noon and Amazon's debut of daily basics. On the other hand, as more people began to shop online during the epidemic, the demand on last-mile delivery services grew.

Further Key Findings
 Increasing Government Initiatives: Several government initiatives have been implemented to encourage innovation, entrepreneurship, and a cashless economy, giving a boost to eCommerce development in the country. Dubai CommerCity, a free trade zone to facilitate eCommerce, was established by the government in 2017. It is backed by an investment of nearly Dh 3.2 billion and extends over an area of 2.1 million square feet.
 Surging Internet and Smartphone Penetration: Consumers in UAE are among the top users of the highest levels of the internet, smartphone, and social media penetrations globally. As per World Bank data, internet penetration in the UAE stood at 99.15% in 2019. As of March 2021, Internet subscribers and active mobile phone subscribers were 3,269,359 and 17,075,188, respectively.
 Introduction of eCommerce Accelerator Tool: The first accelerator program in the UAE and the MENA region, Accelerated Mobile Pages (AMP), which was launched in November 2021 by Virtuzone. Through the program, eCommerce start-ups are offered benefits and subsidies worth USD 10,000 to reduce operational costs in the first year of the business, including trade licensing, shipping, logistics, developing a payment gateway, eCommerce website development, digital marketing and warehousing.
 Internet-Savvy Population: The eCommerce landscape of UAE is largely defined by its demographic profile and high-income levels of consumers. The country is home to a large segment of digital native young adults in the age group of 20 and 39. About half of the population in the UAE is in the 15-35 age group.
 Positive impact over 3PL Industry: COVID-19 has given boost to e-retailing and simultaneously created demand for logistics of which 3Pl service providers are benefitting the most as the companies foraying into eCommerce business are not equipped with logistics supply chain therefore 3PL service providers are able to settle the losses incurred in 2020 and predicted to enjoy high demand in Dubai as country's geographical location and developed infrastructure makes it key market for other GCC regions.
Makreo Research has published a research study on UAE E-commerce market titled, "UAE E-commerce Market Future Forecast to 2027" is a detailed study that helps to assess market performance basis the past and present trends, impact of external factors, initiatives taken by the government and the market players and also key challenges impacting the industry performance. There is a regional level assessment of the market performance covering Dubai and Abu Dhabi.
The report examines the UAE eCommerce market on various parameters. This section in particular discusses past, present and future market performance of the eCommerce industry in the region and specifically focuses on impact of covid-19 over the adoption rate. The section covers market performance by product segmentation (Apparel & Footwear, Consumer Electronics, Food & Drink, Media Products, Personal accessories & eyewear). UAE retail eCommerce and mobile eCommerce market performance and forecast is also discussed in the report. With the emergence of eCommerce, payments market has also benefitted thus it is imperative to understand the most popular online payment methods (Card, E-wallet, Cash, Bank Transfer and others).
The study helps to answer following areas:
 How UAE economy is performing amid disruptions caused by the COVID-19 and to measure the impact of COVID-19 with the help of pre covid-19 and post covid-19 assessment.
 What are the technological developments happening in the UAE eCommerce market?
 What are the top exporting and importing products of UAE?
 What percentage of the population resides in Urban areas and what population segment dominates the UAE eCommerce demand?
 How UAE eCommerce market was performing in the past and what is the impact after the virus outburst?
 What are the factors influencing the demand and how industry is placed in near future?
 What are the external factors accounting for a shift in the demand and how these factors are expected to influence the market?
 How mobile eCommerce market is performing in the UAE?
 What are the leading B2C segments in the region?
 Who are the key players in the market and what is their present state of performance?

To know more about Makreo Research or to enquire about the publication, please refer to the link
https://www.makreo.com/report/uae-e-commerce-market-performance-an-outlook-to-2027-covid-19-impact-assessment

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MaKreo Research & Consulting is an end to end business solutions provider, facilitate clients in their critical business decision making and have proven history of bringing disruption with the help of impactful analysis. Company offers wide array of research services covering Syndicated Studies, Custom Studies and On Ground Studies where we develop strategy and activation plans supported by our research and rich consumer insights that brings clarity to our client's business. We assess competition, company's internal growth assessment, assessment of opportunities in a geography, impact of external factors over business, market assessment, customer buying behaviour, new business avenues, investment opportunities and more.