A recent report by EZDubai, a dedicated e-commerce zone in Dubai South, along with research consultancy Euromonitor, suggests that the e-commerce space in the UAE and the wider Middle East region is ready to take on new growth, supported by the rollout of 5G networks and the emergence of Metaverse-enabled platforms.
The report notes that the UAE and Saudi Arabia are among the first countries in the world to deploy 5G networks, which is expected to enhance the retail e-commerce experience. In addition, Metaverse-related possibilities will also gain from being on 5G networks, with the launch of Meta Incubator in Dubai in April 2022 to develop early-stage projects for all Metaverse-related technologies.
The report predicts that these technological advancements will help companies launching Metaverse platforms to take online shopping to the next level while also improving omnichannel interactions with consumers. Despite being in the early stages of adoption, the UAE and Middle East e-commerce markets have experienced significant growth in recent years, with a projected combined revenue of $56.6 billion by 2026, up from $37.1 billion in 2022 and $32.5 billion in 2021.
The report also notes that the UAE, Israel, and Saudi Arabia represent 72.1% of the MENA region’s total e-commerce market size, driven by their technologically-savvy populations, near-universal internet usage, and strong government finances.
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