Internet retailing is on a rapid ascent in the United Arab Emirates. The government has made efforts to make Dubai the “smartest city in the world”.
The biggest news of 2017 was the acquisition of Souq.com, the region’s leading online retailer, by Amazon, for USD580 million.
Cash on delivery is still the preferred method of payment via internet retailing in the United Arab Emirates, although card payments are on the rise. However, there is still a lack of trust when it comes to the safety of card payments; especially amongst older generations worried about their credit card details being hacked.
Following successful implementation in Kuwait, H&M launched its online store through its franchise partners in the United Arab Emirates in 2018. H&M offers free delivery over a minimum purchase of AED99, and items can be picked up at a store or delivered in two days in Dubai and Abu Dhabi.
In 2017, Amazon acquired Souq.com, and in 2018 Amazon Global Store could be accessed from its website, which allows consumers in the United Arab Emirates to purchase over 1 million products listed on the US-based Amazon.
Noon.com’s stated goal is to be a local online platform for bricks-and-mortar retailers aligned with Emaar Malls.
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This industry report originates from Passport, our Retailing market research database.