UAE B2C E-COMMERCE MARKET 2018 PUBLICATION DATE: JANUARY 2018

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UAE B2C E-Commerce Market 2018

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B2C E-Commerce

Middle East

UAE

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QUESTIONS

ANSWERED

IN THIS REPORT

What is the current state and the prospects of B2C E-Commerce in the UAE?

How large were the online retail sales in the UAE in 2017?

What are the most important E-Commerce market trends in the UAE?

What are the main online shopping patterns of consumers in this country?

Who are the leading players on the online retail market in the UAE?

SECONDARY MARKET

RESEARCH

Our reports are exclusively based on secondary market research. Our researchers derive

information and data from a variety of reliable published sources and compile the data into

understandable and easy-to-use formats.

ADVANTAGES Maximum Objectivity

Reliable Sources

Up-To-Date Analysis

Boardroom-Ready PowerPoint Presentations

Guidance For Strategic Company Decisions

UAE B2C E-COMMERCE MARKET 2018

B2C E-COMMERCE SALES IN THE UAE TO DOUBLE BY 2021

B2C E-Commerce sales currently account for only a small one-digit share of the total

retail market in the UAE, but are projected to more than double by 2021. According to

yStats.com’s research, the country’s developed infrastructure, high disposable incomes and

Internet connectivity rates, coupled with recent investments of retailers and venture

capitalists into E-Commerce, are expected to drive online retail sales at double-digit growth

rates over the next few years.

With nine in ten individuals having Internet access and a high smartphone

penetration rate, consumers in the UAE are well equipped to embrace E-Commerce.

Although online shopper penetration has grown over the past several years, three-quarters

of UAE’s population still prefer brick-and-mortar stores over digital shopping channels,

according to a recent survey cited by yStats.com. Nevertheless, online retail sales remain on

the growth path spurred by evolving market trends such as mobile shopping and cross-

border E-Commerce. More than 50% of online shoppers in the UAE purchase via

smartphones, and a high double-digit share of Internet purchases is made on foreign E-

Commerce venues.

Several domestic and foreign players made substantial investments in this growing

market, as yStats.com’s report reveals. Among them, Amazon.com acquired the country’s

largest E-Commerce platform Souq.com in 2017, boosting its market share. Multiple store-

based retailers improved their online offerings, while also a new market player, Noon.com,

has emerged to challenge the incumbents with a USD 1 billion investment.

UAE B2C E-COMMERCE MARKET 2018

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MANAGEMENT SUMMARY

OVERVIEW & INTERNATIONAL COMPARISONS

B2C E-Commerce Market Overview and International Comparisons, January 2018

UAE’s Share of B2C E-Commerce Sales in the GCC, in %, 2017e

Retail E-Commerce Sales in the UAE Compared to Saudi Arabia and Other GCC Countries, in USD billion, 2015 –

2020f

Internet Penetration in the UAE, in % of Individuals, Compared to Selected Countries in MENA, 2016

Smartphone Penetration in the UAE, in % of Adults, Compared to Egypt, Jordan, Lebanon, Qatar, Saudi Arabia and

Tunisia, March 2017

TRENDS

Devices Used to Access the Internet, in % of Adults, March 2017

Shopping-Related Activities Carried Out Online, in % of Individuals, H2 2016

Share of Online Shoppers Who Purchased via Smartphone, in %, October 2016

Share of Internet Users Definitely Willing to Use or Already Using Retailer App or Loyalty Program Mobile Apps, in %,

November 2016

Share of Online Purchases from Overseas Vendors, in % of All Online Purchases, 2016

Breakdown of Online Shoppers by Domestic Shoppers Only, Domestic and Cross-Border Shoppers, and Cross-

Border Shoppers Only, in %, October 2016

Product Categories Purchased in Cross-Border Online Shopping, in % of Cross-Border Online Shoppers in the UAE,

October 2016

Top Reasons for Buying From Top 3 Foreign Markets, in % of Online Shoppers in the UAE Buying From the

Respective Market, October 2016

SALES & SHARES

Retail E-Commerce Sales, in USD billion, 2015 – 2020f

E-Commerce Sales, by Airline Tickets, Retail, Entertainment, and Travel, in USD billion, 2015 & 2016

B2C E-Commerce Sales, in AED billion, 2016, 2017 & 2021f

B2C E-Commerce Share of Total Retail Sales, in %, 2015 & 2016

USERS & SHOPPERS

Internet Penetration, in % of Individuals, 2011 - 2016

Online Shopper Penetration, in % of Internet Users, 2015 & 2016

Breakdown of Preferred Channels for Shopping, by In-Store and Online, in % of Consumers, January 2017

Breakdown of Frequency of Shopping Online, in % of Respondents, 2016

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UAE B2C E-COMMERCE MARKET 2018

TABLE OF CONTENTS (1 OF 2)

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USERS & SHOPPERS (CONT.)

Average Number of Online Purchases per Year, Compared to Global Average and the Middle East and Africa

Average, 2016

Average Online Spending Per Purchase, in USD, Compared to Global Average and the Middle East and Africa

Average, 2016

Breakdown of Average Monthly Spending on Online Purchases and Payments, in % of Customers Who Shop or Pay

Online, 2016 & 2017e

PRODUCTS

Product Categories Purchased Online, in % of Online Shoppers, 2016

Top Product Categories Purchased Online, in % of Online Shoppers, 2016

Breakdown of Willingness to Use Services for Ordering Groceries Digitally for Home Delivery, in % of Internet Users,

2016

B2C E-Commerce Sales of Electronics, in AED billion, 2016 & 2017e

PAYMENTS

Breakdown of Payment Methods Preferred in Online Shopping, in % of Online Shoppers, 2016

Share of Consumers Who Believe That Retailers They Shop at Deploy Payment Security Tools to Prevent Fraud, by

Retailers and Online Retailers, in %, 2016

DELIVERY

Retailers’ Perceptions of Customers’ Attitude to E-Commerce Delivery, in % of Respondents, October 2017

Share of Online Shoppers Who Believe Click & Collect Is Important, in %, Compared to the Regional Average, 2016

PLAYERS

B2C E-Commerce Players Overview, January 2018

Market Share of Amazon and Souq in B2C E-Commerce, in %, 2015 & 2016

Top 5 Online Shopping Websites, incl. Total Number of Visits, in millions, UAE’s Share of Total Visits, in %, Average

Visit Duration, Pages Per Visit and Bounce Rate, December 2017

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UAE B2C E-COMMERCE MARKET 2018

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UAE B2C E-COMMERCE MARKET 2018

REPORT-SPECIFIC SAMPLE CHARTS

GENERAL METHODOLOGY OF OUR MARKET REPORTS Secondary Market Research

The reports are compiled based on secondary market research.

Secondary research is information gathered from previously published

sources. Our reports are solely based on information and data acquired

from national and international statistical offices, industry and trade

associations, business reports, business and company databases,

journals, company registries, news portals and many other reliable

sources. By using various sources we ensure maximum objectivity for all

obtained data. As a result, companies gain a precise and unbiased

impression of the market situation.

Cross referencing of data is conducted in order to ensure

validity and reliability.

The source of information and its release date are provided on

every chart. It is possible that the information contained in one chart is

derived from several sources. If this is the case, all sources are mentioned

on the chart.

The reports include mainly data from the last 12 months prior

to the date of report publication. Exact publication dates are mentioned in

every chart.

Definitions

The reports take into account a broad definition of B2C E-

Commerce, which might include mobile commerce. As definitions may

vary among sources, exact definition used by the source (if available) is

included at the bottom of the chart.

Chart Types

Our reports include text charts, pie charts, bar charts, rankings,

line graphs and tables. Every chart contains an Action Title, which

summarizes the main idea/finding of the chart and a Subtitle, which

provides necessary information about the country, the topic, units or

measures of currency, and the applicable time period(s) to which the data

refers. With respect to rankings, it is possible that the summation of all

categories amounts to more than 100%. In this case, multiple answers were

possible, which is noted at the bottom of the chart.

Report Structure

Reports are comprised of the following elements, in the following

order: Cover page, preface, legal notice, methodology, definitions, table of

contents, management summary (summarizing main information

contained in each section of report) and report content (divided into

sections and chapters). When available, we also include forecasts in our

report content. These forecasts are not our own; they are published by

reliable sources. Within Global and Regional reports, we include all major

developed and emerging markets, ranked in order of importance by using

evaluative criteria such as sales figures.

Notes and Currency Values

If available, additional information about the data collection, for

example the time of survey and number of people surveyed, is provided in

the form of a note. In some cases, the note (also) contains additional

information needed to fully understand the contents of the respective data.

When providing information about amounts of money, local

currencies are most often used. When referencing currency values in the

Action Title, the EUR values are also provided in brackets. The conversions

are always made using the average currency exchange rate for the

respective time period. Should the currency figure be in the future, the

average exchange rate of the past 12 months is used.

METHODOLOGY OF OUR UAE B2C E-COMMERCE MARKET 2018

Report Coverage

This report covers the B2C E-Commerce market in the United

Arab Emirates. A broad definition of retail E-Commerce used by some

original sources cited in this report might include both B2C and C2C E-

Commerce.

The report contains relevant information about international

comparisons, market trends, B2C E-Commerce sales and shares, Internet

users and shoppers, products, payment methods, delivery and players.

Report Structure

The report starts with an overview of the B2C E-Commerce

market and international comparisons, where the relevant country is

compared to other countries in the region in terms of criteria relevant to

E-Commerce.

Next, the “Trends” section includes an overview of market

trends, such as M-Commerce and cross-border online shopping.

The section “Sales & Shares” covers the development of retail

B2C E-Commerce sales and E-Commerce’s share of total retail sales.

In the “Users & Shoppers” section, information about Internet

penetration and online shoppers is included.

Afterwards, the section “Products” shows the leading product

categories purchased online.

The next section, “Payment”, covers the payment methods most

used by online shoppers.

Furthermore, the “Delivery” section covers information related to

delivery in B2C E-Commerce.

Finally, the “Players” section includes information about the

leading B2C E-Commerce companies, including a ranking of top online

retailers by market shares and website visits.

UAE B2C E-COMMERCE MARKET 2018

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Innovation Trends in Global Retail and Payments 2017

Global Online Payment Methods: First Half 2017

Global Mobile Payment Methods: First Half 2017

Global M-Commerce 2017

Global Cross-Border B2C E-Commerce Market 2017

Global Digital Gaming Market 2017

Top 5 B2C E-Commerce Country Sales Forecasts: 2017 to 2021

North America B2C E-Commerce Market 2017

Latin America B2C E-Commerce Market 2017

Europe B2C E-Commerce Market 2017

Western Europe B2C E-Commerce Market 2017

Asia-Pacific B2C E-Commerce Market 2017

Southeast Asia B2C E-Commerce Market 2017

October 2017

August 2017

August 2017

June 2016

February 2017

August 2017

December 2017

December 2017

October 2017

July 2017

July 2017

June 2017

May 2017

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Saudi Arabia B2C E-Commerce Market 2018

Middle East B2C E-Commerce Market 2018

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