UAE Retail Sector Ranks 14th Global Development Index – News

0

UAE leads MENA region in household spending on e-commerce

Dubai – GRDI notes that fossil fuel dependent governments see retail as a way to diversify their economies away from oil dependency



Posted: Sun 12 Dec 2021, 19:33

The UAE retail sector was ranked 14th globally in the Kearney Global Retail Development Index (GRDI) due to its resilience and a consistent set of government reforms and d ‘rapid scanning.

The index noted that technology and experiential marketing are driving the growth of the UAE’s retail sector as retailers embrace technologies such as artificial intelligence, internet of things and virtual reality to deliver a more holistic omnichannel experience. Card payments overtook cash transactions and retailers quickly adopted digital payment technologies, including mobile wallets and mobile payment applications, such as those of Emirates NBD Banks and mePay, further boosting the performance of the sector.

Mohammed Dhedhi, partner at Consumer and Retail practice in Kearney Middle East, explained that the ease of doing business in the country, in addition to the constant support for start-ups and small businesses, and well-designed stimulus packages have encouraged foreign direct investments. and stimulated innovation in the sector.

“In addition to high levels of consumer spending, we have seen large international retailers and global brands enter the market or expand their businesses over the past decade,” he said. “While the UAE recently celebrated its Golden Jubilee, its economy behaves like that of a developed market that has accelerated the maturity of the retail market, so much so that it will soon no longer be seen as a “Emerging market” in our GRDI ranking. “

The United Arab Emirates leads the Mena region in terms of household spending on e-commerce, with average spending per household of $ 2,554 being double the global average of $ 1,156 and four times Mena’s average of $ 1,156. $ 629, positioning the country as a high demand market.

Looking through markets, IRDG notes that governments dependent on fossil fuels see retailing as a way to diversify their economies away from dependence on oil. It also shows how the center of gravity of the world of consumer spending is slowly shifting from the United States and developed European markets to emerging markets in Asia, Africa and the Middle East. The pace of this development is directly linked to the innovation, penetration and acceptance of consumer and retail technologies, from simple mobile phone connectivity to sophisticated and secure electronic payment systems.

“With strong historical trade links, African markets are becoming increasingly vital partners for countries in the region. Growth offers retailers a golden opportunity to tap into and invest in a new audience. Large local retailers are already having a head start, with some like Majid Al Futtaim announcing plans to double their presence in countries like Kenya and Uganda, focusing on pricing, private labels and customer loyalty. customers, ”Dhedhi said.

The study ranks 35 emerging countries based on a set of 26 factors and four key variables to determine growing, attractive and relatively risk-free markets. Rather than providing detailed information on market shares which can quickly become obsolete, IRDG focuses on macro-trends and highlights important new developments in the market.

[email protected]

Share.

About Author

Comments are closed.