UAE E-commerce Market Projected to Reach $17 Billion by 2025, Fueled by Growth in Quick Commerce and Metaverse Integration

The UAE’s e-commerce sector is experiencing phenomenal growth, with projections indicating a market value of $17 billion by 2025. This expansion is attributed to several key factors. Government initiatives play a significant role in fostering a supportive environment for online commerce. Additionally, rising internet penetration and widespread smartphone adoption have created a robust digital infrastructure. Most importantly, consumers are increasingly embracing the convenience and efficiency of online shopping experiences.

The research by YallaHub, a UAE-based quick-commerce-as-a-service (QaaS) platform, highlights the growing popularity of quick commerce as a major driver of this trend. Notably, the market is also witnessing the emergence of “metaverse e-commerce,” which presents exciting new opportunities for brands to engage with customers.

To ensure orderly and sustainable growth, the UAE has recently implemented new regulations for licensing and governing the e-commerce sector. This signifies the government’s commitment to fostering a robust and trustworthy online marketplace.

The study further identifies advancements in digital payment methods and the rising popularity of “buy now, pay later” (BNPL) options as contributing factors to the e-commerce boom.

UAE E-commerce Market Poised for Explosive Growth

Market analysts predict a surge in the UAE’s e-commerce market in the coming years, with projections reaching $9 billion by 2024. This translates to a market penetration of 66.1% and a Compound Annual Growth Rate (CAGR) of 6.54% between 2024 and 2028.

Product Categories Leading the E-commerce Boom

The research reveals that toys, DIY (Do It Yourself) and hobbies-related products topped e-commerce sales in the UAE in 2023, accounting for 29% of the market. Fashion goods followed closely behind at 27%. Electronics and media (18%), food and personal care (13%), and furniture and appliances (12%) comprised the remaining significant categories.

Shifting Consumer Preferences Drive Online Sales of Home and Laundry Care Products

Significantly, YallaHub’s research indicates a remarkable surge in demand for online home and laundry care products in 2023. Consumers are increasingly comfortable purchasing these everyday essentials through e-commerce platforms, demonstrating a shift in shopping behavior.

The YallaHub study projects continued growth for this segment, with home and laundry care revenue expected to reach $75.66 million by 2024. Furthermore, the research anticipates a steady rise in market penetration for this category in the years to come.

Similar positive outlooks are forecasted for the e-commerce market for tissue and hygiene care products, hair care products, and the emerging “metaverse e-commerce” space.

MENA Region Poised to Follow UAE’s E-commerce Growth Trajectory

Industry experts predict that the Middle East and North Africa (MENA) region will mirror the UAE’s e-commerce growth trajectory. This is driven by the adoption of cutting-edge technologies and evolving consumer preferences across the region.

A report by EZDubai, in collaboration with Euromonitor and 1115 Inc., projects the MENA e-commerce market to reach $57 billion by 2026. This growth is further fueled by significant investments in the sector, including acquisitions and collaborations with international businesses.

The YallaHub research underscores the immense potential of the UAE’s e-commerce market, particularly with brands adapting to changing consumer preferences and embracing innovative solutions like quick commerce.

“Platforms like ours, with cutting-edge technology and regional expertise, are well-positioned to capitalize on this opportunity,” said Leo Dovbenko, CEO of YallaHub. “We empower brands to navigate the exciting and ever-evolving e-commerce landscape.”

Publish 6 Mar 2024

Source: https://www.arabianbusiness.com/industries/retail/revealed-uae-online-shopping-market-to-hit-17bn-by-2025-as-metaverse-e-commerce-quick-commerce-take-hold/

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Work Bundle Launched In Dubai For 275k+ Companies, Expands To All Emirates Soon

The United Arab Emirates (UAE) has launched a unified Work Bundle platform, offering a streamlined solution for companies across the country to manage employee visa applications and renewals. This initiative brings together the services of five federal and local authorities into a single platform, facilitating data exchange and simplifying procedures.

Currently available in Dubai through the Invest in Dubai platform, the Work Bundle will soon be accessible throughout all emirates within weeks. This innovative platform aims to eliminate bureaucratic hurdles and expedite processes for businesses, particularly startups and entrepreneurs.

Dr. Abdulrahman Awar, Minister of Human Resources and Emiratisation, highlighted the platform’s role in attracting foreign investment. He emphasized the initiative’s contribution to the UAE’s ongoing digital transformation, showcasing its commitment to efficiency and ease of doing business.

The announcement, made in the presence of key officials from various government departments, underscores the collaborative effort behind this significant advancement. Leveraging Emirates ID and other digital tools, the Work Bundle empowers businesses to complete transactions quickly and effectively, reflecting the UAE’s commitment to embracing the pace of digital transformation.

Lieutenant General Mohammed Ahmed Al Marri, Director General of Dubai’s General Directorate of Residency and Foreigners Affairs, emphasized the platform’s role in attracting companies to the UAE. He highlighted the initiative as a testament to the nation’s rapid digital transformation efforts.

Publish 6 Mar 2024

Source: https://www.arabianbusiness.com/politics-economics/work-bundle-now-available-to-275000-companies-in-dubai/

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DIEZ Records Exceptional Growth, Profits In 2023, Bolstering Dubai’s Economy

The Dubai Integrated Economic Zones Authority (DIEZ) announced significant growth and record profits in 2023, highlighting its commitment to fostering Dubai’s economic diversification and global competitiveness.

DIEZ experienced a remarkable year financially. Operating profit surged by 64.6% compared to the previous year, total revenue climbed 8.1%, and the organization directly contributed 5.1% to Dubai’s GDP in 2021. These figures demonstrate DIEZ’s strong financial health and significant impact on the emirate’s economy.

Increased Business Activity:

Economic zones overseen by DIEZ witnessed a surge in activity in 2023. Company registrations jumped 15.3%, and the workforce within these zones grew by a substantial 30.5% to reach 70,000 individuals. This growth signifies the increasing attractiveness of DIEZ zones for businesses seeking to operate in Dubai.

Sheikh Ahmed bin Saeed Al Maktoum, Chairman of DIEZ, emphasized the organization’s commitment to stimulating investment and trade, enhancing Dubai’s GDP, and contributing to the Dubai Economic Agenda D33. He further stressed DIEZ’s dedication to solidifying Dubai’s position as a leading global investment destination.

Dr. Mohammed Al Zarooni, Executive Chairman of DIEZ, highlighted the organization’s dedication to bolstering Dubai’s economic competitiveness and contributing to the UAE Centennial 2071 and “We the UAE 2031” vision. He also emphasized DIEZ’s focus on fostering knowledge-based and innovative sectors and supporting small and medium-sized enterprises through a AED 500 million venture capital fund.

Focus on Future Growth:

DIEZ remains committed to driving future growth by focusing on key areas like artificial intelligence, sustainable development, and knowledge-sharing initiatives. These efforts aim to solidify Dubai’s position as a global hub for investment and innovation, ultimately contributing to the emirate’s ambition of becoming one of the world’s leading economies.

Publish 22 Feb 2024

Source: https://www.arabianbusiness.com/industries/technology/uae-to-host-first-gulf-only-esports-competition-in-push-to-become-global-gaming-hub

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UAE To Host First Gulf-Only Esports Competition In Push To Become Global Gaming Hub

Continuing its commitment to fostering the UAE’s burgeoning gaming industry, True Gamers, a leading international network of esports clubs, has announced plans to host the first-ever esports competition solely involving countries within the Arabian Gulf. This initiative follows the successful execution of the inaugural amateur esports tournament between Dubai and Sharjah earlier this year.

Furthering Esports Development in the UAE and Beyond

Scheduled for the first half of 2024, this upcoming competition marks a significant step towards establishing the UAE as a global gaming hub. Industry experts anticipate the UAE’s esports industry to reach multi-million dollar status within the next five years, solidifying the nation’s position as one of the world’s fastest-growing gaming markets.

Empowering Aspiring Gamers Throughout the Region

Building upon the success of the Dubai-Sharjah tournament, True Gamers aims to organize further amateur competitions throughout the UAE and the wider Gulf region. These initiatives play a crucial role in cultivating a thriving esports culture, fostering a strong gaming community, and stimulating industry growth.

True Gamers: Committed to Advancing the UAE’s Esports Landscape

True Gamers remains dedicated to nurturing the UAE’s esports scene by providing fresh opportunities for local gamers and facilitating their transition into professional careers. By organizing high-quality tournaments equipped with advanced technology, True Gamers strives to create a platform for aspiring esports athletes to showcase their talent and represent their region on the global stage.

Looking Forward to Continued Growth and Success

True Gamers’ leadership emphasizes their commitment to establishing a robust esports culture within the region and empowering young individuals to develop their gaming skills. Through continued support and the organization of additional tournaments, True Gamers aims to solidify the UAE’s position as one of the leading forces within the global gaming landscape, aligning with the nation’s vision to become a thriving hub for the esports industry.

Publish 22 Feb 2024

Source: https://www.arabianbusiness.com/industries/technology/uae-to-host-first-gulf-only-esports-competition-in-push-to-become-global-gaming-hub

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Dubai Prepares To Host The Highly Anticipated 2024 Esports & Games Festival

Under the esteemed patronage of Sheikh Ahmed bin Mohammed bin Rashid Al Maktoum, the Dubai Esports & Games Festival (DEF) proudly announces its 2024 edition, scheduled to take place from April 19 to May 5. This year’s festival promises to be a landmark event, exceeding previous benchmarks and solidifying Dubai’s position as a global hub for gaming and esports.

Ahmed Al Khaja, CEO of Dubai Festivals and Retail Establishment, emphasizes the festival’s significance: “DEF 2024 is more than just an event; it’s a celebration of the passion, skill, and dedication that drives the global gaming community. We aim to empower these communities and elevate the industry’s regional and global standing through innovative experiences and unparalleled engagement opportunities.”

Key Highlights of DEF 2024:

Expansive gaming showcase: Over 50 games will be playable on 200 machines, including 11 unreleased titles and 4 world-first showings, offering a glimpse into the future of gaming.
Global reach: Building on the success of DEF 2023, which attracted 48,200 participants from 91 nationalities, the 2024 edition promises an even more diverse and international audience.
GameExpo: Held at the Dubai World Trade Centre from May 3 to 5, this central event features cutting-edge gaming products, thrilling esports competitions, and interactive activations like cosplay and coding workshops.
Play Beyond: This platform pits top regional and global esports stars against each other, delivering an electrifying spectacle for spectators.
Ramadan online tournaments: The festival caters to the gaming community throughout Ramadan, offering exciting online tournaments.
Nurturing young talent: Initiatives like the Microsoft MakeCode Competition and the Minecraft Education Challenge provide educational programs and opportunities for aspiring gamers and developers.
Industry knowledge exchange: The GameExpo Summit powered by Pocket Gamer Connects offers industry professionals a space for networking, knowledge sharing, and connecting with leaders in the gaming sector.

DEF 2024 promises an immersive and engaging experience for gamers, enthusiasts, and industry professionals alike. It marks a significant step forward in Dubai’s ambition to become a leading global hub for gaming and esports, fostering innovation, community development, and individual growth within this dynamic industry.

As the Dubai Esports & Games Festival (DEF) 2024 ignites Dubai, dive into a world of electrifying competition, cutting-edge innovation, and unparalleled business opportunities. Join the throngs of passionate gamers and industry leaders, and leverage Smart Zones^® UAE’s expertise to launch your dream gaming or esports business. With Dubai’s thriving ecosystem and Smart Zones^® UAE’s streamlined setup process, transform your passion into a reality. Don’t miss this chance to connect, network, and propel your gaming enterprise to new heights. Start your exciting journey at DEF 2024!

Publish 17 Feb 2024

Source: https://www.arabianbusiness.com/industries/technology/dubai-announces-2024-edition-of-esports-games-festival

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Dubai Municipality showcases its ‘FoodTech for Safety and Efficiency’ program at Gulfood 2024

At Gulfood 2024, Dubai Municipality takes center stage to demonstrate its unwavering commitment to propelling the food sector forward through a meticulously crafted suite of integrated digital programs. These cutting-edge solutions seamlessly streamline import, export, and registration processes for food products, ensuring the highest standards of food safety and quality are meticulously upheld across the entire emirate.

Furthermore, the Municipality embarks on a comprehensive review of its existing digital services, aiming to continuously optimize and enhance their effectiveness. This ongoing review paves the way for the introduction of the groundbreaking Dubai Food Systems Excellence Programme, a prestigious initiative specifically designed to recognize and celebrate establishments that demonstrably excel in the areas of food safety, sustainability, and innovation. This forward-thinking program proudly champions responsible food practices while simultaneously propelling Dubai’s position as a leading global trade hub, ultimately contributing to an improved quality of life for all.

By actively participating in Gulfood, Dubai Municipality extends a crucial platform for educating stakeholders on the intricacies of regulations, processes, and best practices within the realm of food safety. This invaluable knowledge-sharing initiative plays a pivotal role in minimizing food waste within the region, thereby fostering a more sustainable and environmentally conscious food ecosystem. Through this multifaceted approach, Dubai Municipality unequivocally underscores its unwavering dedication to constructing a secure, sustainable, and resilient food system that will continue to flourish and benefit every member of the community.

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Publish 19 Feb 2024

Source: https://www.arabianbusiness.com/industries/travel-hospitality/dubai-municipality-highlights-integrated-digital-programmes-for-food-sector-at-gulfood-2024

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UAE Leads Metaverse Adoption, Poised To Contribute $16bn Annually By 2035

The United Arab Emirates (UAE) is rapidly establishing itself as a global leader in virtual tourism, leveraging cutting-edge technologies like Artificial Intelligence (AI) and hyper-personalized experiences. This innovative approach is expected to capture a significant portion of the projected $3.26 billion global market for metaverse-enabled tourism by 2025.

Fueled by rising demand for remote and sustainable travel experiences, the UAE’s virtual tourism landscape is experiencing a dynamic shift. New players, both international and domestic, are entering the market, attracted by the segment’s thriving potential. This influx is expected to reshape the virtual tourism landscape within the country.

Currently, established players like Matterport, Dubai360, and 360 Emirates offer engaging packages like the “Louvre Virtual Tour in Abu Dhabi” and the “Dubai360” interactive experience. These experiences allow users to virtually explore iconic landmarks like the Palm Jumeirah and the Burj Al Arab from anywhere in the world.

Beyond inspiration and trip planning, virtual tourism serves as a valuable tool for leisure and entertainment. It is projected to significantly contribute to the UAE’s ambitious goal of generating $125 billion (AED450 billion) in tourism revenue by 2031.

Industry experts like Samuel Huber, CEO of LandVault, a leading virtual experience developer with operations in Dubai, predict a major expansion in the market. “The global virtual tourism market is expected to reach $6.5 billion by 2030, and the UAE is poised to capture a significant portion due to its leadership in implementing virtual tourism experiences,” he states.

LandVault itself is actively investing in the region, building digital twins for real estate companies and collaborating with local governments on undisclosed projects. Huber emphasizes the potential benefits of virtual tourism for the UAE’s tourism sector, including increased GDP contribution and attracting wider tourist demographics.

Beyond “try before you buy” experiences, virtual tourism serves as a valuable planning tool, enhancing the overall travel experience and contributing to the sector’s long-term growth. Factors like technological advancements, the desire for remote experiences, and sustainable travel trends are driving the sector’s expansion.

According to Huber, “The metaverse could bring a benefit of up to $16.7 billion per year to the UAE, while contributing up to $50 billion in additional GDP to the Middle East and North Africa region by 2035.”

The UAE’s tourism sector is also witnessing a surge in AI adoption for trip planning, with 60% of travelers expecting AI assistance compared to the global average of 48%. Additionally, demand for hyper-personalized experiences is rising, leading to companies like Miral developing facial recognition technology for seamless entry and contactless payments in their theme parks.

With its strategic investments, innovative approach, and focus on personalized experiences, the UAE is poised to solidify its position as a global leader in virtual tourism, attracting new players and reaping significant economic benefits in the years to come.

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Publish 20 Feb 2024

Source: https://www.arabianbusiness.com/industries/travel-hospitality/uae-metaverse-adoption-surges-ahead-of-global-peers-on-tourism-ai-bets-as-market-poised-to-contribute-16bn-yearly-by-2035

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UAE’s Fils & Telr Join Forces: Sustainable Infrastructure For Greener E-Commerce

In a strategic move to empower e-commerce businesses with sustainable solutions, Dubai-based ESG fintech Fils has partnered with Telr, a leading online payment gateway provider in the UAE. This collaboration aims to integrate Fils’ end-to-end sustainable infrastructure into Telr’s platform, enhancing the transparency and environmental impact of financial transactions.

Through this partnership, Telr merchants will gain access to emission tracking tools and the ability to participate in voluntary carbon markets, effectively mitigating the environmental footprint of their operations. This aligns with Telr’s commitment to promoting sustainable finance, as emphasized by its CEO, Khalil Alami, who stated: “This partnership underscores our unwavering dedication to driving sustainable finance, and by leveraging Telr’s expertise and partnering with entities like Fils, we aim to reshape transactions.”

Nameer Khan, CEO and Founder of Fils, highlighted the positive impact this collaboration will have on tackling climate change: “The partnership with Telr will make a real impact in tackling the issues of climate change, providing access to carbon markets via our robust and transparent infrastructure.”

This integration seamlessly expands Telr’s existing suite of services, offering a comprehensive one-stop solution for e-commerce businesses seeking to elevate their operations while minimizing their environmental impact.

Publish 15 Feb 2024

Source: https://www.arabianbusiness.com/industries/technology/uae-fintech-fils-partners-with-online-payment-gateway-telr-to-offer-sustainable-infrastructure-for-e-commerce-businesses

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DIFC Dubai Launches Initiative For Family Business Succession And Longevity

The Dubai International Financial Centre (DIFC) recognized the increasing demand for support among family businesses and spearheaded several initiatives in early 2023. This commitment was further solidified with the recent launch of a specialized program in collaboration with MIT Sloan Executive Education and the DIFC Academy.

Titled “Sustaining Family Business Success,” the intensive program (June 24-26, 2024) equips participants with the knowledge and strategies to navigate both regional and global expansion while staying true to family values. Participants will gain valuable insights into building future-proof enterprises that can thrive across generations, earning a prestigious MIT Sloan certificate upon completion.

Recognizing the critical need for adaptability in today’s dynamic landscape, DIFC Chief Strategy Officer Christian Kunz emphasizes Dubai’s ideal position as a hub for family businesses. “Our vibrant ecosystem, strategic location, and dedication to innovation create a unique offering,” he states, highlighting the blend of global opportunities and a supportive environment conducive to growth.

With only 20% of Middle Eastern family businesses reaching the third generation, this program aims to empower and ensure their longevity, contributing significantly to the UAE’s economic prosperity. MIT Sloan’s Faculty Director John Davis echoes this sentiment, stressing the need for redefined stewardship and building agility for long-term success. He emphasizes that “the traditional model of simply preserving family legacy is no longer sufficient. Building a future-oriented and adaptable enterprise, while generating diverse value streams aligned with family values, represents the new paradigm for success.”

The program incorporates six key pillars designed to address critical challenges faced by family businesses: Future Vision, Managing Turbulence, Governance, Talent, Succession, and Multigenerational Success. This comprehensive approach aligns with DIFC’s ongoing commitment to supporting family businesses, exemplified by initiatives like the Family Wealth Centre and Family Arrangements Regulations. These resources provide dedicated services, legal frameworks, and support structures to help families preserve their legacies across borders and generations.

By launching these initiatives, DIFC demonstrates its proactive approach to empowering family businesses and fostering their sustainable growth within the region’s dynamic economic landscape.

Publish 12 Feb 2024

Source: https://www.arabianbusiness.com/industries/banking-finance/dubais-difc-launches-new-initiative-to-boost-succession-planning-longevity-of-family-businesses

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Dubai secures agreements for the world’s first air taxi at the 2024 World Government Summit.

In a groundbreaking development poised to transform urban transportation, Dubai has finalized agreements during the World Government Summit 2024 to introduce the world’s inaugural air taxi service. These agreements establish the framework for Dubai to spearhead the implementation of an expansive electric aerial taxi service and vertiport network.

Central to this pioneering initiative is the Joby Aviation S4, an innovative aircraft meticulously designed to comfortably accommodate four passengers and a pilot. Equipped with six propellers and powered by four battery packs, the S4 boasts an impressive maximum range of 161 km and a top speed of 321 km per hour. Its Vertical Take-Off and Landing capabilities make it especially well-suited for urban environments, minimizing spatial requirements typical of conventional stations and mitigating noise pollution in comparison to helicopters.

Prioritizing efficiency, safety, and sustainability, the air taxi project pledges an array of advantages, encompassing reduced noise levels, zero operating emissions, and heightened passenger convenience. By harnessing state-of-the-art technology, these aerial vehicles aim to seamlessly integrate into Dubai’s urban landscape, providing rapid and environmentally friendly transportation solutions. The electric-powered aircraft can undergo swift recharging between flights, representing a bold stride towards a more sustainable and accessible transportation future.

The commencement of the air-taxi network’s operations is scheduled for 2026, marking a significant milestone in Dubai’s ongoing endeavor to redefine urban mobility.

Publish: 13 Feb, 2024

Source: https://www.thenationalnews.com/business/aviation/2024/02/13/dubai-flying-taxis/