Dubai hosts the World Expo: Booming e-commerce market trends in the United Arab Emirates (UAE)

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From October 1st to March 31st, 2022, Dubai in the United Arab Emirates (UAE) will be hosting the Middle East's first international exposition, the Dubai World Expo (Expo 2020 Dubai).
My image of Dubai is that of
the world's tallest skyscrapers. The Address Beach Resort, the world's highest outdoor pool, and the Burj Khalifa, the tallest building in the world at 828 meters tall, are also in the mix.
And on October 21st, the world's largest Ferris wheel, Ain Dubai, will be completed.
Dubai has grown significantly in recent years due to the influx of foreign capital, and is known in the UAE as "Economic Dubai."
This time, we looked into the e-commerce situation in the United Arab Emirates (UAE).


Basic information about the United Arab Emirates (UAE)
The UAE is a Middle Eastern federal state consisting of seven emirates.
The seven emirates are Abu Dhabi, Dubai, Sharjah, Ajman, Umm Al Quwain, Fujairah, and Ras Al Khaimah. The capital of the UAE is Abu Dhabi. The
UAE's economy is mainly based on revenue from natural resources such as oil and natural gas, but it has recently been diversifying with an emphasis on the service industry.
In 2020, the UAE was hit by a drop in oil prices due to cayman islands whatsapp data the effects of COVID-19, causing economic difficulties.
The UAE is making a major shift to break away from its dependence on oil and to move away from its oil-dependent policy.
One of these is the issuance of passports to foreigners with skills needed by the UAE, such as investors, doctors, inventors, and scientists. Obtaining
this passport is the same as obtaining citizenship, and if you obtain it, you will be able to receive the same generous benefits as Arab citizens.
Arab governments are seeking to attract investors and talented people to the UAE to boost their economies.

Below is a summary of basic data about the UAE from sources such as Hootsuite UAE 2021.

Population : 9.94 million (January 2021)
Male : 69.0% Female: 31.0%
Area : 83,600 km2 (JETRO) (same area as Hokkaido)
(87.2% of the UAE's population lives in urban centers, 12.8% in rural areas)
Capital : Abu Dhabi
Currency : UAE Dirham (AED) 1 AED = 29.26 yen (July 2020)
Languages : Arabic (Official), English, Hindi, Malayalam, Urdu, Pashto, Tagalog, Persian (CIA)
Internet penetration rate : 99.0% (January 2021)
Mobile connections : 171.6% of total population
Smartphone penetration rate : 97.6%
PC penetration rate : 68.6%
Social media users : 9.84 million (January 2021)
(Youtube: 87.4% Facebook: 81.4% WhatsApp: 80.2%)
E-commerce usage rate : 59.7%
Credit card retention rate : 45.4%
UEA e-commerce market size
According to JETRO's materials, the size of the UAE's e-commerce market in 2017 was US$2.789 billion (approximately JPY 31.4 billion), and is expected to grow at an annual rate of approximately 24% to US$5.321 billion (approximately JPY 60 billion) in 2020. It
is also expected to reach US$9.701 billion (approximately JPY 1 trillion) in 2024.
Currently, mobile commerce is growing significantly in the UAE due to the spread of smartphones
. In 2020, mobile e-commerce usage increased to 42%. Mobile commerce is likely to expand further in the future.

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The impact of COVID-19 has changed the way payments are made.
Until now, the mainstream form of payment in the UAE was cash on delivery, but hygiene measures and contactless credit card payments have increased significantly.

Furthermore, the COVID-19 pandemic has also caused changes in product categories in e-commerce.
"Food and personal care items (beauty and cosmetics)" have increased sharply, and are expected to increase from approximately $680 million (approximately ¥77 billion) in 2020 to approximately $1.44 billion (approximately ¥159 billion) in 2024, a significant increase of approximately 2.5 times.
Growth is also expected in many other e-commerce categories, with the furniture segment increasing by approximately 2.2 times, fashion (clothing and shoes) doubling, toys, hobbies and DIY supplies by approximately 1.8 times, and electronic media by approximately 1.6 times. Even after COVID-19, consumers will continue to use online services for shopping, and this is expected to continue to expand.