How to Imрrоvе Uае's Е-Соmmеrсе?

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How to Imрrоvе UАЕ's Е-Соmmеrсе?

According to a study by the Telecommunications Regulatory Authority (TRA), a majority of businesses operating in the Emirates do not retail their products online and only eleven percent of these businesses shop for products over the internet (Flanagan). Conversely, forty four percent of the Emirates workforces have access to a computer while other reports indicate that forty nine percent of UAE web users have at one point made purchases online. Accordingly, this shows a significant disparity, particularly in relation to the UAE Government's 2021 development plan and the Abu Dhabi's Economic Vision 2030 (Flanagan).

A variety of factors are linked to this slow uptake of e-commerce in the UAE. Firstly, the major reason for the slow uptake is low credit card penetration rates and most e-commerce firms had to rely on other payment methods such as Cash on Delivery which is cumbersome. Secondly, growth in e-commerce, in the region has been mainly driven by service sector due to readily available scalability, savings and distribution model support. Thirdly, the retailing sector in the UAE is unique such that some of the growth factors associated with the increase e-commerce in the US and Europe, are not applicable or rather do not exist in this region. Some of the dissimilarities include consumer proximity to retail outlets, consistent product availability, extended retail hours, advanced retail mix and dependence on customer service rather than self-service. Lastly, government regulations such as the Agency Law have served as a hindrance to the growth of e-commerce in the region.

In the face of these challenges, e-commerce in the UAE has the potential, to grow especially as people gain access to the web more and more. However, a number of factors should be addressed for this business, to thrive. Firstly, changes are required in the payment systems whereby...