The Ministry of Economy and the Abu Dhabi Chamber of Commerce and Industry (ADCCI) have released a joint paper projecting a 12.3% compound annual growth rate for digital trade activities in the UAE between 2023 and 2028.
The research highlights that over 40% of UAE consumers rely on “buy now, pay later” models and FinTech digital technology systems.
Titled “Introducing Trade by Modern Technological Means: Economic Outlook and Federal Decree-Law No. 14/2023 – BEI Research 360° Paper,” the document details the significant growth in Abu Dhabi’s digital trade.
Key factors driving digital trade growth include various economic activities and current policies. The study also provides a historical overview of digital trade at local, regional, and global levels.
“The Abu Dhabi Chamber continues its endeavours to enhance the quality of initiatives and projects dedicated to the private sector,” noted Ahmed Khalifa Al Qubaisi, CEO of ADCCI. “It employs various smart systems to analyse and process accurate data, as well as develop operational processes.”
This approach aims to bolster sound decision-making and the formulation of effective strategic plans aligned with the aspirations of the business community in Abu Dhabi.”
The research paper outlines local, regional, and global regulatory frameworks, highlighting the importance of Federal Decree-Law No. 14/2023 for digital trade. It notes the increase in Abu Dhabi’s e-commerce companies by 12% between 2022 and 2023, with the UAE achieving the third-highest global level in digital trade by the end of 2022.
The study projects the MENA region’s digital trade market to reach $57 billion by 2026, with digital trade rising from 5.7% in 2022 to 8.3% in 2026. It also reports that 49% of UAE consumers frequently shop online, with 47% using credit cards, much higher than the global average of 18%.
By 2024, 20.1% of global retail purchases are expected to be online, rising to 25% by 2027.
