The Top Online Business Trends in Dubai for 2022

How to increase Online Business Trends in Dubai? Increased Internet Penetration Rates, Rising Demand for Forex Trading, Varied Digital Payment Systems.

Introduction to Online Business Trends in Dubai:

Dubai has played a key role in evolving the economic hub that underpins the Middle East, which has historically relied on oil and mineral exports across the globe. Now home to around 3.4 million people, Dubai is increasingly renowned as a central hub for tourism, travel, and hospitality, with this diversification appealing hugely to global investors and establishing Dubai at the center of the burgeoning MENA region. This also precipitated quarterly growth of 11% between January and March 2021, as the economy showed signs of resilience and growth in the wake of the coronavirus pandemic (despite an overall annual decline of 3.7% year-on-year). Another key driver of growth in Dubai and the wider UAE region is eCommerce; which also saw a significant boom during the coronavirus pandemic and its associated lockdowns. To this end, the UAE e-commerce market as a whole peaked at a record $3.9 billion last year; with this representing a year-on-year increase of 53%. This also accelerated a wider trend in eCommerce growth in the UAE and Dubai; with the market set to expand to a whopping $8 billion by 2025. This means that the market is set to more than double in less than four years; with this exponential growth set to be driven by numerous factors. These include:

#1. Increased Internet Penetration Rates

The UAE has the highest smartphone penetration rate in the MENA region; with this having influenced the growth of e-commerce in Dubai and across the board through 2021. To this end, the share of e-commerce in the UAE online shopping market increased from 29% in 2015 to 42% last year; while this segment of the market peaked at $1.6 billion in 2020 (this was 56% higher than the previous 12 months). Interestingly, the CAGR for retail m-commerce is set to exceed 18.9% between the end of 2020 and 2025; making mobile purchases a key driver of growth in Dubai and the surrounding regions.

#2. Rising Demand for Forex Trading

With the UAE and Dubai an increasingly connected global space; it should come as no surprise that the region is a hotbed for online investment and forex services. In fact, the proportion of online and mobile traders to Internet users is the highest in the MENA region; with one-in-every-152 of the 147 million people active online investing virtually on a regular basis. This percentage and the overall number continue to increase year on year; with forex trading now representing one of the most lucrative and online financial platforms in Dubai and the MENA region.

#3. The Rise of Varied Digital Payment Systems

Another key growth factor is the rise of modern and accessible digital payment systems; which assist unbanked populations and make it easier than ever to procure goods and services online. While cryptocurrencies are not yet formally regulated by the UAE’s Central Bank; this type of payment system is also making its market in the region’s digital infrastructure. More specifically, Dubai expects more than 1,000 cryptocurrency businesses to be operational in the region by 2022; with the government accelerating efforts to boost its digital economy. This will have a positive impact on eCommerce and online sales revenues in Dubai; while also changing the nature of the financial landscape in the region.

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