RIYADH: E-commerce trade in the UAE is projected to reach $9.2 billion by 2026, while its share of total retail sales is expected to hit 12.6 percent in the same year, according to the latest analysis by the Dubai Chamber of Commerce.
The analysis, which utilized data from Euromonitor, shows that e-commerce sales in the UAE recorded remarkable growth in 2021, reaching $4.8 billion during the year, compared to $2.6 billion in 2019, news agency WAM reported.
According to the report, the sale of mobile gadgets like smartphones and tablets accounted for the majority of transactions in 2021, totaling $2.6 billion, equal to 44 percent of the total e-commerce market value.
The study report further noted that mobile retail sales are expected to record a compound annual growth rate of 15.6 percent over the 2022-2026 period, to reach $4.6 billion.
The analysis showed more than one-third of UAE consumers use their smartphones to purchase products or services at least once a week — above the global average.
The study further noted that the availability of several apps which aid consumers with price comparison has driven the growth of e-commerce purchases in the nation.
The report pointed out that 73 percent of shoppers in the UAE preferred local retail websites, while foreign websites received only a 27 percent share.
The market share of foreign e-commerce platforms is expected to grow by 19.2 percent between 2022 and 2026, which would mark a 34 percent gain in the total retail share.
The report also pointed out that the improvement and modernization of payment systems and services was a crucial factor that elevated the rate of e-commerce shopping in the UAE.
In 2021, consumer electronics which include smartphones, phone accessories, computer accessories, tablets, computers and television accounted for a 34 percent share of the e-commerce sector, followed by apparel and footwear at 31 percent, food and beverages at 12 percent, media products at 8 percent, personal accessories at 5.8 percent, and consumer appliances at 3.3 percent.