UAE E-commerce Market: Analysis of Potential and Product Opportunities
After several years of development, the UAE has become the country with the highest B2C e-commerce growth rate in the Middle East. It is expected that the e-commerce market will reach US$10 billion by 2018. As an international country, the UAE is at the forefront of the Middle East in terms of Internet infrastructure construction and smart mobile device penetration. As of 2015, the Internet penetration rate in the UAE reached 70%, and the mobile phone penetration rate was 71%. Consumers’ online consumption methods are also relatively advanced, with about 50% of buyers choosing to shop on smart mobile devices, which has laid a good foundation for the further development of e-commerce.
Affected by the weakening of Arab culture and Islam, people in the UAE show diversified characteristics in terms of lifestyle and consumption needs. Especially in terms of product preferences, clothing, accessories, shoes, mobile phones, electronic products and toys are all popular choices among local consumers. In addition, with the popularity of smart mobile devices and payment systems, e-commerce in the UAE will have greater development potential in the future.
In the UAE e-commerce market, some specific products show greater market opportunities. For example, women’s clothing in public places is restricted by traditional Islamic culture, and Muslim women usually have to choose specially designed swimwear called “burkinis.” This type of swimsuit consists of a long top and trousers, which is a good way to follow local dress customs and avoid overexposure. Although there are currently only a small number of burkinis listed online on mainstream cross-border e-commerce platforms, if they can be promoted in conjunction with local culture and language, this type of product may become a major potential product in the UAE market.
On the other hand, the Emiratis’ unique love for tea also provides market opportunities for related products. Data shows that the per capita consumption of tea in the UAE is nearly 8 kilograms per year, ranking first in the world, which means that tea-related peripheral products will become a new market potential area.
To sum up, the UAE’s e-commerce market shows significant growth potential in terms of Internet penetration, consumption patterns, and diversity of cultural needs, especially in specific products that adapt to cultural needs, such as Muslim women’s swimwear and Tea related products, etc. As the market continues to mature, these opportunities are expected to bring good returns to investors and merchants.