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MARKET OUTLOOK
The silver lining Pedersen & Partners’ Brian Cartwright and Andrea Williams look at the future for eCommerce in the region Perhaps the most significant of all recent
Moreover, the World Economic
developments in retail is the growth and
Forum has estimated the UAE’s 2020
progress of e-commerce. According to a
e-commerce market at $27.2bn,
joint study by Dubai Economy and Visa,
with similar growth across MENA.
the UAE is currently the most advanced
As we monitor shifting consumer
e-commerce market in the Middle East
expectations during these times
and North Africa, revealing an estimated
of crisis, we can witness new
annual growth of 23% between 2018
technologies and online platforms
and 2022. While customers continue to
gaining prominence. Preliminary
enjoy the ‘destination shopping’ aspect
data suggests that these trends
of visiting a physical store, COVID-19
will remain as the new normal, even
has encouraged many people to try
after the pandemic has subsided.
e-commerce for the first time. This jump
The retail sector must prepare for
in online users is not expected to reduce.
the impact of technologies such as artificial intelligence (AI), robotics
The growth and future of e-commerce in the Middle East
and the internet of things (IoT).
A recent study of ten markets in the
at the core of the Fourth Industrial
region, including the United Arab
Revolution, and no sector will be
Emirates and Saudi Arabia, revealed
immune to their advancements. In
that up to 40% of respondents are now
our opinion, this time will be looked
shopping online more than they were
back on as a watershed moment.
before the novel coronavirus outbreak. Research commissioned by the global
These high-tech developments are
Transitioning retail supply chains to support e-commerce is not a quick
consultancy firm Kearney Middle East
fix; it requires careful planning and a
asked consumers if they would maintain
clear strategy for implementation.
their current shopping behaviours after
Many retailers do not have their
the pandemic: 48% in the UAE and 69%
physical operations set up to
in Saudi Arabia answered ‘yes’. This
match the digital processes and
behaviour usually translates to shopping
service requirements for running an
that is less frequent and more planned,
e-commerce business. A beautiful,
with bigger online grocery purchases.
glossy online store is all very well,
