Tradeling, the largest business-to-business (B2B) marketplace in the Middle East and North Africa (MENA), has witnessed a strong surge in the region’s e-commerce sector as multiple reports have cited an expected consistent growth for the industry in both Dubai and the MENA region.
According to a recent interview with Mohammad Ali Rashed Lootah, President and CEO of Dubai Chambers, Dubai has witnessed a recent surge in the e-commerce market due to several factors, including a 97% year-on-year growth for the number of international visitors, which reached 14.36 million in 2022 in comparison with the previous year (2021). This is mainly due to the resilience of the UAE government, who have reacted as well as anyone to the aftermath of the COVID-19 pandemic and was able to re-open the market to everyone under suitable safety measures.
Another strong reason is the evolution of retail and e-commerce, as Dubai has seen an entry into the metaverse, with stores and malls opening in the Web3 space. Retail outlets have been able to adjust very smoothly and effectively in bridging the gap between the digital and actual world with all the advanced technology provided to them. UAE residents can take advantage of the opportunity and incorporate it into their daily lives. This trend is continuously becoming the new norm for shoppers using the internet as their primary platform for most purchases.
The sector has also reached a high-growth era for the entire MENA region, with significant progress in sales, logistics, and payments, nearly reaching $37 billion in 2022, according to a report by EZDubai, with the expectation to reach almost $57 billion by 2026 at a compound annual growth rate of 11%. This is mainly due to increasing internet and mobile penetration, rising consumer demand for convenience and value, and the emergence of innovative business models.
Marius Ciavola, CEO of Tradeling, commented, “The region’s focus on innovation while embracing advancements in technology and adopting a digital-first approach has fuelled the growth of the e-commerce sector in the region. This is spearheaded by Dubai, which is always looking to maximise all opportunities and unlock its full potential across all industries, with e-commerce being one of the main growth pillars. The UAE has always been a leader in accepting and utilising technology to its full advantage. The first step to this was digitalising its economy in 2013, resulting in a continuous increase in the e-commerce sector, as much of the population has adopted the idea of a cashless society with all transactions implemented more efficiently without the requirement of a physical presence. The sector has grown exponentially during and after the pandemic. It continues to push on this strong momentum with additional support by the rising demand for online shopping and steady investment in the sector’s infrastructure.”