E-commerce is one of the trending segments that has massively attracted global business investors. The United Arab Emirates is one of the world's growing economies and thus, holds enormous potential for the e-commerce segment to boom.
Seeing the spike in the e-commerce business, the UAE government has taken forward steps to drive and become a global leader. The nation has long been seen as an early investor in the GCC and the broader MENA region, especially when it comes to local technology trends.
This guide highlights the business opportunities an investor can focus on and take the lead.
The Ecommerce Market Scenario in the UAE
The United Arab Emirates (UAE) is the most advanced region in the Middle East. As a result, e-commerce has been rising in the UAE, with consumers shopping more online than before.
So, while it's been well-established that foreign investors are interested in investing here, new opportunities have also presented themselves.
As per the reports, the B2B e-commerce segment has been continuously growing. The Dubai Chamber of Commerce & Industry forecasts the industry to generate $8 Billion in sales by 2025.
The Dubai Free Zones Council (DFZC) has announced new regulations for the free zones in Dubai to enhance the FDI in the sector, aiming to encourage the adoption of technology in cooperation with the Dubai government authorities.
The Emerging E-Commerce Business Opportunities in the UAE
Some of the areas where the new and established business owners can focus include:
1. Fashion & Apparel
Undoubtedly, Dubai is the fashion hub in the Middle Eastern market. As per the reports, the fashion segment is projected to reach US$4.68bn in 2022.
The penetration of the e-commerce industry in the fashion segment has boosted sales drastically. So, if you are a business owner dealing in the fashion business, take a call by building a new app or website.
The UAE turns out to be a home for multinational events, demanding decoration, which widens the floriculture or flower industry scope.
Be it for gifting or any other occasional purpose, the delivery of flowers over a short duration has been an encouraging step that has provoked multiple business owners to enter the market and drive the industry.
Business owners entering the flower business prefer setting up their offices in Dubai Flower Centre (DFC) Free Zone.
Grocery apps have been another evolving segment in the e-commerce sector. Delivery of the essentials at the doorstep has become a convenient move.
The shopkeepers can have their dedicated app or become a partner with a third party who can assist them in the delivery process.
Here's a guide on Grocery License in Dubai that one should obtain if one is trying to enter into the same business.
4. Cleaning Services
Another focused area that has grown is the demand for cleaning services. Expert professionals can be hired whom the end-users can select based on their requirements. This turns out to be a perfect option for working professionals who doesn't have time to clear the chores.
5. Food Delivery
Food delivery is one of the most contributing segments for the e-commerce business. Joining hands with an e-commerce platform and grabbing the business opportunities is not just limited to the restaurants.
Even house owners have the flexibility to register themselves with a third party or build an in-house app to deliver home-cooked food.
Getting a helping hand with one click of a button turns out to be a great boon for individuals. Over the period, the logistics industry has merged with tech to widen its reach. This has widened the scope of the logistics businesses rapidly.
The interest in e-commerce is growing, and even people who have never ordered online are starting to explore the possibility. Therefore, from the e-commerce perspective, the UAE is a favourable market.
Thus, it is the perfect time for business investors to step in and grab the opportunity. To know how to contact our experts today-we'd be glad to assist!
1. Is e-commerce a profitable business segment in the UAE?
Yes, investment in the e-commerce business in the UAE can fetch one higher profit.
2. Do I need to apply for a license for an e-commerce business in UAE?
As per the government rules, it is mandatory to obtain a permit for entering the e-commerce market.
3. What is the expected compound annual growth rate for the e-commerce sector from 2021-25?
4. What is m-commerce?
M-commerce is buying and selling goods and services through mobile phones and tablets.
5. What are the three different types of m-commerce?
- Mobile shopping
- Mobile banking
- Mobile payments