A joint study by the UAE Ministry of Economy and the Abu Dhabi Chamber of Commerce and Industry (ADCCI) paints a bright picture for the nation's digital trade sector, forecasting a compound annual growth rate (CAGR) of 12. 3% between 2023 and 2028. This significant rise reflects the growing adoption of e-commerce and FinTech solutions by UAE consumers and businesses.
The research highlights the increasing popularity of "buy now, pay later" (BNPL) models and other digital financial technologies, with over 40% of UAE consumers utilizing these services. This trend aligns with the global surge in e-commerce, with projections indicating that online purchases will account for roughly 20. 1% of global retail sales in 2024. By 2027, digital retail activity is expected to capture an even larger share, reaching approximately 25% of total global sales.
The UAE appears well-positioned to capitalize on this digital trade boom. The study reveals that nearly half (49%) of UAE consumers regularly engage in online shopping. This enthusiasm is further fueled by a strong credit card penetration rate, exceeding 47% – significantly higher than the global average of 18%. These factors collectively contribute to the UAE's projected growth as a digital trade hub.
The report also sheds light on Abu Dhabi's thriving digital trade landscape. The emirate is experiencing remarkable growth within this sector, fueled by ambitious government initiatives aimed at fostering innovation and digitalization. These efforts are strategically aligned with the broader vision of solidifying Abu Dhabi's position as a leading destination for business and talent in the Middle East and North Africa (MENA) region.
The UAE's digital trade success story can be attributed to several key factors. The government's commitment to developing a robust e-commerce infrastructure has played a critical role. Additionally, the increasing internet and smartphone penetration rates within the UAE population have facilitated the widespread adoption of online shopping platforms and digital payment solutions.
Looking ahead, the UAE's digital trade sector is poised for continued expansion. As the government invests further in digital transformation initiatives and consumer confidence in online transactions grows, the UAE can solidify its position as a regional leader in the e-commerce domain.