Posted on: Press Release on April 10, 2019
According to the latest publication from Hamburg-based secondary market research firm yStats.com, online retail competition in the UAE is becoming more intense as the market continues to evolve. According to the findings of the report “UAE B2C E-Commerce Market 2019”, online retail sales in this country are projected to maintain strong double-digit growth through 2022.
Online retail sales growth in the UAE reaches double-digits
The UAE is one of the largest B2C E-Commerce markets in the MENA region, and still has room for growth, reveals yStats.com’s report. High Internet and smartphone penetration rates help the wealthy nation drive online sales growth, with a projection of a double-digit increase in E-Commerce revenues through 2022.
M-Commerce and cross-border online shopping flourishes in the UAE
The key market trends in the UAE include mobile commerce and cross-border online shopping. In 2018, more than one in two digital buyers in the UAE made purchases via smartphones, and a similar share purchased from overseas websites. Fashion was the top product category purchased by UAE consumers online, followed by electronics. Groceries and meal-kit delivery services have not yet made a significant impact on E-Commerce, but signal a strong growth potential.
Amazon is expanding operations in the region as competition grows
As the market continues to develop, competition among local and foreign E-Commerce merchants is becoming more intense. Amazon, which acquired the region’s largest online marketplace, Souq.com, a few years ago, plans to roll out local operations in 2019 and is building up data processing and fulfillment capacity in the UAE. Furthermore, eBay partnered with a fast growing regional player Noon.com and H&M launched an online store in the UAE.