E-Commerce in the UAE: Facts and perspectives (15 photos)
A joint conference co-organised by the French Business Council and the French Digital in Dubai.
5. UAE leading in the MENA e-commerce field
•By 2015, 1/3rdof MENA’s e-commerce will take place in the UAE alone
•Dubai is well positioned to become a regional hub for e- commerce
•Market Size
•Modern infrastructure (ports, airports, advanced telecom network)
•UAE named fiber capital of the world
•Existing trade and investment ties with GCC and MENA
•The easiest place for doing business in the region (world bank)
•A recent study from Accenture ranked UAE as the 3rdcountryin its use of digital government
•UAE lead with its smartphone penetration (above 82%) overall mobile phones penetration and broadband internet penetration
6. Regional eCommerceis set for substantial growth
Middle East & North Africa online commerce market (USD Bn)
Source: 2013 PayPal Insights: e-commerce in the Middle East
7. Cash on Delivery is a killer!
COD makes up ~80% of MENA E-commerce Market, but 20-30% of transactions fail at the door.
Courier charges for COD services are high & a hassle.
Merchants incur high costs of failed transactions (Shipping, last mile delivery, inventory storage…etc.)
Messes up eCommerceplayers Cash flow -You always need a credit line
8. eCommerceis done in any place via any device
Where are Middle Easternsmaking their purchases (in %)
Source: 2013 PayPal Insights: e-commerce in the Middle East
11. Commerce!
Already a HUGE trend in Kuwait! Instagram commerce will become bigger in other countries across the Middle East in 2014
12. Mobile is a prime channel for both online and offline commerce
•65% of Namshitransactions are happening now on mobile!
•Over 50% of traffic of Cobonetraffic is on mobile in UAE and it reach even 60% in KSA
13. eCommerceis revolutionizing retail !
Buy online, return in-store
Buy online, pick-up in store
Buy online, fulfill through any store
Buy in-store, fulfill through online
Buy via mobile
Buy via social commerce site
Buy via call-center
Buy
14. Middle East overall e-commerce usage is still not mainstream..
The majority of people in MENA have not yet shop online.
•54% of respondents have never purchased airline tickets online
•64% of respondents have never purchased books online
•76% of respondents have never purchased movie/theater tickets online
•55% of respondents don’t purchase other items online
MBRSG’s Governance and Innovation Program in collaboration with Bayt.com, targeting
residents of 22 Arab countries. The survey fielding was conducted between March and April
2014 with respondents numbered at almost 3000. Responses were received from all countries
in the Arab region (Algeria, Bahrain, Comoros, Djibouti, Egypt, Iraq, Jordan, Kuwait, Lebanon,
Libya, Mauritania, Morocco, Oman, Palestine, Qatar, Saudi Arabia, Sudan, Syria, Tunisia, UAE
and Yemen). The sample consisted primarily of internet users as it was administered via an
online survey. 75% of the sample was male and 14% of the sample was between the ages of
15-24 and 44% were between the ages of 25-34. Countries most represented in the sample
size are Egypt, Saudi Arabia, Jordan, Algeria, the UAE and Morocco.