Over 6.5 Million People Shift To Online Shopping In The UAE In 2023
The UAE has seen a remarkable surge in online shopping, with around 20% of the population, or approximately two million people, embracing e-commerce in recent years. The number of online shoppers in the UAE grew from 4.5 million in 2019 to 6.5 million in 2023. This shift is propelling UAE's retail sales, which reached Dh306.6 billion ($83.5 billion) in 2022.
Industry experts project that the retail market will continue to expand at a compound annual growth rate (CAGR) of over 5% from 2022 to 2027. The Internet Commerce Summit 2024, hosted by IMAGES RetailME, served as a crucial platform for discussing the e-commerce sector's challenges and opportunities. Industry leaders and experts shared strategies for navigating the rapidly changing digital environment and fostering growth in a competitive landscape. The summit delved into the integration of physical and digital retail, the impact of AI and data analytics on customer engagement, omnichannel strategies, and the rise of innovative business models.
At the summit, esteemed business figures and innovators in the e-commerce field shared their insights on technology transformation, innovation, and market disruption. They emphasised the importance of earning customer trust through technological advancements, service quality, and convenience.
Despite the significant growth of the UAE's e-commerce sector, there is potential for further expansion, with an 18% year-on-year growth compared to the global average of 36%. The offline retail sector is transitioning into experiential centers, while online sales are on the rise. The offline electronics retail sector is facing rationalisation and consolidation, with an increase in investments in the online segment.
The transaction value in the UAE's digital commerce market is expected to hit $18.44 billion in 2024, with an annual growth rate of 6.53%, reaching a total of $23.75 billion by 2028. The number of users in the digital commerce market is likely to reach 7.82 million by 2028.
The summit also featured the IMAGES ME E-Commerce Awards 2024, celebrating excellence and innovation in e-commerce across various brands and categories. This recognition highlights the notable e-commerce achievements and journeys within the industry.
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