UAE E-commerce market Expected to Reach US$9.2 Billion in 2026

The value of the UAE e-commerce market is expected to reach US$9.2 billion in 2026, while the sector’s share of total retail sales in the UAE is projected to reach 12.6 percent by the same year, a new analysis from Dubai Chamber of Commerce has revealed.

The study, based on data from Euromonitor and released ahead of GITEX Global 2022, on10-14 October 2022, highlighted several factors boosting e-commerce activity in the UAE, as well as high-potential growth opportunities.

Total e-commerce sales in the UAE recorded remarkable growth in 2021, reaching $4.8 billion during the year, compared to $2.6 billion in 2019.
Mobile devices, such as Smartphones and tablets, accounted for a majority of e-commerce transactions last year as the mobile retail market reached US$2.6 billion, accounting for 44 percent of the total e-commerce market value. Mobile retail sales are expected to record a compound annual growth rate of 15.6 percent over the 2022-2026 period to reach US$4.6 billion.

Shoppers in the UAE, according to the report, preferred local retail websites to overseas retailers. In 2021, domestic e-commerce websites accounted on average for 73 percent of the total sales while foreign websites received only a 27 percent share.

The report stated that despite the clear preference of buyers utilising domestic websites, increased competition from foreign e-retailers projected in the future. Between 2022 and 2026, foreign e-commerce platforms are expected to grow by 19.2 percent, which would mark a 34 percent gain in market share.

Products

Consumer electronics in the UAE constituted the top-selling online products in 2021 with a 34 percent share, consisting mainly of smartphones, phone accessories, computer accessories, tablets, computers and TVs.

Apparel and footwear accounted for 31 percent, food and beverages 12 percent, media products 8 percent, personal accessories 5.8 percent, and consumer appliances 3.3 percent.

This article was previously published on UAE Moments.To see the original article, click here