A study showcasing the substantial expansion and promise of digital commerce in the United Arab Emirates was released by the Ministry of Economy and the Abu Dhabi Chamber.
Between 2023 and 2028, this industry is expected to expand at a compound annual rate of 12.3%. The rising use of financial technology (FinTech) solutions and "Buy Now, Pay Later" (BNPL) services, which are utilized by more than 40% of UAE consumers, is a major factor in this increase.
The Abu Dhabi Chamber's ambitions are driving a remarkable increase in digital trade in Abu Dhabi. Through innovation and digitization, the Chamber hopes to increase the private sector's economic contribution to the region. By 2025, they want to establish Abu Dhabi as the region's leading commercial and talent hub for the Middle East and North Africa (MENA).
Strategic Vision of the Abu Dhabi Chamber
The Abu Dhabi Chamber's director general, Ahmed Khalifa Al Qubaisi, stressed that the study paper backs up the Chamber's digital transformation plan. The objectives of this strategy are to draw in talent, investigate technical advancements, and incorporate cutting-edge artificial intelligence (AI) methods into their functional systems. These programs aim to boost customer happiness, boost everyday task efficiency, boost productivity, and assist local and international companies and entrepreneurs.
The significance of Federal Decree Law No. 14/2023, which regulates trade using contemporary technical methods, is emphasized in the study paper. The developing industry of e-commerce is supported by this law and other UAE regulations. As seen by the increasing number of businesses adopting cutting-edge technology to conduct cross-border trade in goods, services, and data, Abu Dhabi has made a major effort to promote electronic commerce. Between 2022 and 2023, the number of e-commerce businesses registered in Abu Dhabi increased by 12%. With regard to these recently registered companies, the economic and electronic licenses "Mubda’a" and "Tajer Abu Dhabi" have the highest proportion. This expansion is in line with the general trend of companies implementing digital technologies to improve their operations.
UAE’s Global Standing in Digital Commerce
The UAE achieved the third-highest level globally in digital commerce by the end of 2022. Around 49% of UAE consumers shop online frequently, and approximately 47% of the population relies on credit cards for online transactions. This is significantly higher than the global average of 18%, highlighting the advanced state of digital commerce within the UAE.
The research paper from the Ministry of Economy and the Abu Dhabi Chamber demonstrates a robust and rapidly growing digital commerce landscape in the UAE. With strategic initiatives, legislative support, and a strong consumer base adopting digital technologies, the UAE is well-positioned to continue its growth trajectory in the digital commerce sector. This progress not only enhances the local economy but also solidifies the UAE’s standing as a global leader in digital trade and innovation.
