28 April, 2021
UAE Online Shops Increase by 21% Over Last Year
The latest Mastercard Recovery Insights report for 2020 revealed that UAE online shops saw an increase of 21% when compared to 2019.
The recent report released by Mastercard under the Recovery Insights realm indicated that online shops in UAE increased by 21% in 2020 as compared to the previous year 2019.
Some of the key retail sectors that thrived in e-Commerce for 2020 were largely due to the onset of the global pandemic, which in turn led to changing consumer patterns. It is to be noted that the same retail sectors held small share when it came to digital business.
The online shopping market for the Gulf region is expected to reach $30 Billion by the end of 2021, up by almost 33% from $22 Billion as at the end of 2020. The top contributors to the online market were Saudi Arabia, Egypt and UAE, which together accounted for over 80% of the regional online shopping market base.
The global online shopping market saw an increase of $900 Billion in 2020 alone. While in 2019, e-Commerce accounted for 14% of all retail spending, this share increased to 20% of all retail spending in 2020.
In UAE, there was a 44% increase in high-volume e-Commerce trading partners. Dubai Future Foundation revealed that the contribution of e-Commerce to GDP was 4.3% in 2019, and this would increase to a value of $62.8 Billion by 2023.
Mastercard also anticipated that nearly 20-30% of this digital shift in consumer spending is expected to be a permanent behavior, moving forward.