UAE retail e-commerce market reaches $3.9bn in 2020

UAE retail e-commerce market reaches $3.9bn in 2020

The UAE retail e-commerce market reached $3.9bn in 2020, a 53 per cent year-on-year increase. Also, e-commerce accounted for an 8 per cent share of the retail market during the same year, analysis from Dubai Chamber of Commerce and Industry has revealed. The study projected the value of the market to reach $8bn by 2025. The growth it said will be supported by several key factors including high-income potential, high Internet penetration rate (99 per cent), developed transport logistics network, modern digital payment systems, growing tech-savvy youth population, and strong government support within the UAE. The UAE has the highest smartphone penetration rate in the MENA region, which has contributed to the growth of mobile-commerce (m-commerce) from 29 per cent in 2015 to 42 per cent in 2020. Moreover, in 2020, UAE retail m-commerce retail market value reached $1.6bn, 56 per cent higher than the previous year. The retail m-commerce market of the UAE is projected to reach $3.9bn by 2025, and grow with at a CAGR of 18.9 per cent between 2020 and 2025. The UAE, and Dubai in particular, remain hubs for e-commerce growth in the MENA region. According to data from the UAE National Economic Register, the