Intelligent Tech Channels Issue 63 - Page 48


Mobile phones facilitating 70 % of e-commerce transactions in the UAE finds Tradeling

T radeling , the Middle East ’ s B2B e-marketplace , has observed significant growth in the Middle East and North Africa , MENA region ’ s e-commerce sector . The UAE has been a bright spot as major investments , acquisitions and partnerships with global companies have helped the country position its capabilities as the 27th largest in the world .

Recent data shows that the UAE ’ s e-commerce market is projected to generate $ 17.2 billion in revenue by 2027 and experience an annual growth rate of 8.4 % through the next four years .
E-commerce sales in the UAE were estimated to grow by an average of 23 % per year between 2018 and 2022 . The pandemic was a driving factor for this growth as it accelerated the country ’ s digital shift and positioned it among GCC countries .
UAE ’ s online shopping resulted in $ 2.6 billion in sales in 2019 . Its market grew by 53 % and recorded $ 3.9 billion in sales the following year before reaching $ 4.8 billion in sales in 2021 and reflecting an 84.6 % increase over the two years prior .
Almost 100 % of the population has Internet connectivity and mobile phone access , and this is what is fuelling 70 % of e-commerce transactions . As a result , the Dubai Chamber of Commerce and Industry forecasts e-commerce in the UAE to generate $ 8 billion in sales by 2025 .
The benefits of this strong trajectory have extended beyond the Emirates ’ borders and bolstered the region as a whole . Despite signs of a global slowdown trend in online sales post-pandemic , MENA e-commerce sales rose by 21 % to reach $ 25 billion in revenue last year .
With the UAE ranking as the fastestgrowing e-commerce market in the world in 2022 , all signs point towards this momentum being sustained . Furthermore , a recent change announced by Dubai Customs will likely spur additional e-commerce growth as residents and citizens within the country will pay less when shopping online ; goods imported with a value of less than AED 1,000 are exempt from paying tax fees .
The threshold has increased from the AED 300 announced in January to effectively make products bought online for between AED 300 and AED 1,000 cheaper .
As MENA ’ s dominant B2B marketplace , Tradeling is playing an instrumental role in the UAE ’ s e-commerce rise . The company has grown rapidly since its inception three years ago with a wide selection of more than 1.7 million products across 14 categories and more than 200,000 registered buyers and sellers from 55 countries . •
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