The digital trade activities in the UAE are projected to see a significant increase in growth over the next few years, with a compound annual growth rate of 12.3 per cent expected between 2023 and 2028. A joint study conducted by the Ministry of Economy and the Abu Dhabi Chamber of Commerce and Industry revealed that over 40 per cent of consumers in the UAE are reliant on “buy now, pay later” models and FinTech digital technology systems for their transactions.
The paper titled “Introducing Trade by Modern Technological Means: Economic Outlook and Federal Decree-Law No. 14/2023 – BEI Research 360° Paper” highlighted the significant growth of digital trade in Abu Dhabi. The study provides insights into the key factors driving growth in digital trade, the impact of policies and laws, and a historical overview of digital trade movements across various geographical levels.
Ahmed Khalifa Al Qubaisi, CEO of ADCCI, emphasized the importance of digital transformation in enhancing the private sector’s contribution to the local economy. The Abu Dhabi Chamber is focused on integrating advanced AI technologies, such as Microsoft Copilot, into its operational system to increase productivity and customer satisfaction. The Chamber aims to support local and global businessmen and entrepreneurs through innovative digital solutions.
The research paper also sheds light on the regulatory frameworks and policies at local, regional, and global levels, along with the significance of Federal Decree-Law No. 14/2023 in promoting digital trade. It highlights the role of major international bodies like the World Trade Organization in shaping trade dynamics, as well as new e-commerce practices that are influencing current trade trends.
The Emirate of Abu Dhabi has seen a rise in e-commerce companies engaging in cross-border exchange of goods, services, and data through modern technologies. The increase in registered e-commerce companies in Abu Dhabi indicates a growing interest in digital trade. The UAE ranked third in digital trade globally by the end of 2022, with expectations of further growth in online shopping services in the MENA region.
The research paper also revealed that a significant percentage of consumers in the UAE regularly shop online, with a high reliance on credit cards compared to the global average. It is predicted that digital retail activity will constitute a substantial portion of total global sales by 2027. With digital trade on the rise, the UAE is positioning itself as a key player in the digital economy, embracing innovative technologies and enhancing its regulatory framework to foster sustainable economic development.
