UAE is on its way to become Global Hub for E-commerce platforms, especially given how the Government is promoting the establishment of E-commerce Platforms. UAE is predominantly characterized by retail shopping sprees, with fancy malls, and being dubbed as the best place to shop, when it came to malls, and physical shopping in general.
However, since the Covid-19 pandemic struck, citizens were forced to be locked up in homes, with complete closure of physical stores and malls, including grocery stores. The entire region was restricted of its physical movement, which was quite troublesome for the people of UAE, as they were accustomed to physical shopping and outdoor shopping activities.
The Covid-19 pandemic changed the accustomed values of the citizens of the UAE, as opposed to the other Emirates. While nearly all Emirates have shifted towards online shopping as the main medium, despite the significant ease of lockdown restrictions, but UAE has capitalized it the most, as the Government played a vital role in it.
The Soar of Online Shopping in the UAE
As we mentioned earlier that the Covid-19 restrictions forced individuals to stay at their homes and restrict physical or outdoor movement. But we are in 2022, sparked by a significant decrease in lockdown restrictions, amidst vaccination drives and implementation of SOPs. One would believe that the citizens of UAE would shift back to their old routine, right? Well, you’d be surprised to know that this isn’t necessarily the case, as statistics state the otherwise.
UAE shoppers, in fact, spent more than 40% per visit on grocery-based websites, as opposed to in-store shopping, despite the opening of malls and supermarkets. If we compare the data between March 2020 to March 2021, alone, then you’ll be surprised to find that an increase of 45.6% was found in online basket spends, increasing from AED 138 to AED 279, nearly doubling in value.
The UAE’s Digital Economy before Covid-19 contributed around 4.3% to the country’s GDP, but the figure has significantly increased in 2022, as the Government promoting E-commerce platforms at large, by leveraging technology, and encouraging the use of fintech and digital payments.
Digital Payments or Fintech Leading the Way
The unprecedented growth of online shopping in UAE, is owed to people getting more comfortable with Digital Payment Mechanism. A survey report from Checkout.com identified that shoppers now prefer to pay for their orders through digital payment channels, with 60% consumers backing up the stance. And this figure is a 20% increase from the year 2020. Moreover, today, three out of four consumers, are reported to use some sort of fintech app, in the region, with nearly 81% having confidence in the fintech sector. Online shoppers in the UAE believe that making transactions through digital channels provide direct benefits to the, either in the form of reward points or any other incentives. But the biggest benefit is convenience, backed by seamlessness and security of the procedure.
Given how impactful the digital sector is becoming in the UAE, coupled with the confidence of consumers making digital transactions and payments, is one of the main reasons why UAE has more online shoppers than other Emirates.
Presence of International Brands
UAE, specifically Dubai, is considered to be the top destination for shopping, not because of its strategic location, but also because of how it has aligned itself with international brands. One of the reasons why UAE has more online shoppers than other Emirates, is because of the fact that many internationally renowned brands offering up to 30% off coupon codes, like Zara, Lacoste, Bath & Body Works Coupon Code, Invicta, Sun & Sand Sports Coupon Code, Adidas, Amazon UAE coupon code, and many more heavily acclaimed brands have both physical and online presence in the region. UAE is house to almost all major brands, of different categories, and the fact that they have online presence in the respective Emirate, is proof that UAE has more online shoppers than other countries of Middle East. Online shoppers are only expected to increase further, as these top brands will enhance online shopping experience for the citizens of UAE.
Consumer choice in the UAE has changed the most. The shifting dynamics of consumers in the UAE, in itself, shows the significance of online shoppers in the country, as opposed to other Emirates. Statistics show that 21% more individuals are spending (per cent) on online shopping platforms. The E-commerce footprint in the UAE has grown exponentially, following a continued growth trajectory, meaning that, in the coming years, UAE will be leading, in terms of online shopping, as opposed to other Emirates.
Also published on Medium.