Major Middle East retailers are preparing to attend the Retail Me Tech & Marcom Icons Summit, which chronicles the changing retail market in the region. The event is scheduled to take place June 28 at the Conrad Dubai. This comes at a time when e-commerce is growing due to the high use of the Internet by the population of the Middle East.
The UAE’s e-commerce market is expected to rise by 60% to around AED 30 billion by 2025 as consumers across the region continue to shift towards online retail, according to a new report.
The Dubai Chamber of Commerce and Industry issued a report expecting retail sales in the UAE to reach $70.5 billion (AED259 billion) by 2025 – an annual growth rate of 6.6%. Retailers in the UAE confirmed their optimism about growth for 2022. More than three-quarters (84%) of retailers expect to grow by 20% or more in 2022.
This number may increase with further investment planning. Last year, 73% of UAE businesses grew revenue of 20% or more, across the retail, food and beverage and hospitality sectors, which is 67% more than the global scale has seen, according to research from Aden, the global fintech platform.
In 2021, the global retail market generated sales of more than $26 trillion, and is expected to reach more than $30 trillion by 2024 – equivalent to a third of the global economy.
The total e-commerce market in the region is also expected to reach $49 billion in 2025, up from $31.7 billion last year. The COVID-19 pandemic has had a strong impact in accelerating the transition to digital services, as consumers switch to cashless payments and online shopping.
Globally, digital payments are expected to reach $8.26 trillion by 2024, from $4.4 trillion in 2020, according to a Statista report. A study by Majid Al Futtaim showed that consumer spending in the UAE grew by 14% in the first quarter of 2022, supported by government initiatives launched to simplify the country’s economic recovery after the “Covid 19” pandemic.
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