The UAE is experiencing a significant shift towards online shopping, with a 140 per cent increase in monthly e-commerce shoppers since 2020. As consumer confidence in digital commerce continues to rise, 49 per cent of UAE consumers are planning to increase their online shopping in the coming year. These trends were highlighted in Checkout.com’s 4th annual Mena e-commerce report released during the Seamless Middle East 2024 exhibition in Dubai.
The report, titled “The State of Digital Commerce in Mena 2024: A Tale of Rapid, Sustained Growth,” sheds light on the dynamic evolution of the region’s digital commerce landscape. It showcases the increasing trend towards digital payments and emphasizes the importance of digital commerce platforms in catering to the changing needs and preferences of UAE consumers. With a focus on the growing digital economy in Mena, the report offers insights into consumer shopping habits, preferred online platforms, and opportunities for merchants to enhance their digital payment performance.
Nearly half of UAE consumers (49 per cent) are looking to boost their online spending in the next 12 months, reflecting a significant shift in consumer behavior towards online shopping. The report also highlights a 23 per cent increase in weekly online shoppers and a 10 per cent increase in daily online shoppers among UAE residents. This data points to a strong preference for digital commerce platforms and signals an accelerated adoption of online shopping in the UAE.
Payment security emerges as a key loyalty driver for consumers in the UAE, with a growing preference for secure digital payment options. The report highlights that 36 per cent of consumers rank payment security as their top concern when shopping online, aligning with the 35 per cent of UAE consumers who have reported being victims of online payment fraud. Optimizing payment performance is crucial for retaining customers, as 29 per cent of UAE shoppers would switch to a competitor following a single failed payment.
The report also signifies a shift away from cash on delivery (COD) towards digital payment methods in the UAE, with a 37 per cent decrease in preference for COD over the last 48 months. The rapid adoption of digital wallets, such as Apple Pay and Google Pay, further indicates a transition towards diverse payment preferences among consumers. With an increasing confidence in digital payment methods, businesses have the opportunity to streamline their operations and reduce costs by embracing advanced payment solutions.
A notable trend in this year’s report is the expansion of digital commerce across various retail sectors beyond essential items. Consumers are increasingly purchasing a diverse range of products online, including household items, electronics, furniture, event tickets, travel services, and beauty and luxury products. This shift underscores the integration of digital commerce, fintechs, wallets, and remittances into everyday life, offering a wide array of goods and services for online shoppers. Overall, the report reflects the growing importance of digital commerce in shaping consumer behavior and driving economic growth in the UAE.
