The quality of e-commerce in the UAE has yet to come

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More an Offer than a Demand issue

The lack of credible digital commerce offering in the UAE remains an ever true fact with only 15% of its population shopping online. Given the country has an Internet penetration of 80% and one of the world’s highest smartphone penetration (78%), the paradox is striking.

Any analyst of mature online markets would regard this as nothing but pure heresy, since the more connected consumers a brand has, the more additional revenue it can draw from them. The reality is somewhat more complex and the relatively weak development of e-commerce in the UAE has reasons beyond lack of trust and payment security concerns, as often raised by vendors in their pitches.

UAE connected consumers are increasingly relying on web and mobile services to communicate and facilitate aspects of their day-to-day life. The development of e-services and mobile apps in the region, heavily pushed by the government, is increasingly generalizing electronic payments. Online payment has actually been a common practice in the Emirates for traveling purposes for some time. UAE consumers are now ready for more relevant and actionable online content and services, which local retailers are yet to provide them.

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