UAE News
Key Findings
- The UAE recorded an increase in online
consumer spending primarily driven by a 21% jump in the number of online
platform, as the world witnessed an exponential boom in retail e-commerce
with an additional USD 900 billion being spent in 2020.
- Shipa, the digital logistics and e-commerce
arm of Agility, has recently opened two state-of-the-art e-commerce
fulfilment centres in Dubai to manage online purchases and deliver to
customers in the UAE, Saudi Arabia, Kuwait, Qatar and Bahrain.
- Boksha, an Emirati-founded e-commerce platform
selling Khaleeji-themed fashion items, has raised $1 million in
early-stage funding. The startup will use the fund to improve its
operations, and invest in technology to further expand across the Gulf and
the wider Middle East.
Way Forward
for E-Commerce in UAE: In the past
few years, the UAE has managed to position itself as one of the fastest-growing
e-commerce markets in the world. It is currently the most advanced e-commerce
market in the Middle East and North Africa, revealing an estimated annual
growth of ~17% between 2020 and 2025. While customers continue to enjoy the
‘destination shopping’ aspect of visiting a physical store, COVID-19 has
encouraged many people to try e-commerce for the first time. This jump in
online users is not expected to reduce. The country has transformed into a
digital hub providing access to high-speed internet to its citizens. This along
with other factors has led to a rise in the popularity of online shopping. From
business-friendly laws and regulations to a rise in the popularity of online
shopping culture, a variety of factors would continue to drive the rapid growth
of e-commerce in the area.
Promoting
E-Commerce Logistics Development in UAE: Opening up of logistics hubs along with the introduction of new web
technologies in last mile logistics would provide the much needed boost to the
shipping companies as well as the consumers. The growth of e-commerce logistics
companies will highly depend on their last mile delivery model. Mobile Depots
are expected to make urban deliveries faster as where in mobile depots will
carry parcels of the day from the fulfillment centers to the city centre for
last mile delivery. New models for handling the last mile such as “click and
collect” locations are further anticipated to drive the growth of E-commerce
logistics. Moreover, local retailers are expected to increase their presence in
the e-commerce segment and would partner with an e-commerce logistics company
to deliver the products. Companies would focus more on technology upgradation
such as GPS Monitored Robots, Drones, Inbuilt RFID, GPS, IoT, telematics for
better inventory management.
Long Term
Positive Impact of Covid-19: The sudden
onset of the pandemic has essentially interrupted and unsettled social and
economic activities worldwide. Despite the slump faced by the commercial sector
at the onset of the pandemic, long stretches of progress have occurred recently
with the offline market moving to the web. This growth can be mainly attributed
to the increased demand for quick, comfortable, and speedy delivery of products
and services. 49% customers are shopping more online since the start of
pandemic with high share of spends attributable to Groceries, Retail Goods,
Apparels, and Electronics etc. Online retailers have seen a huge decrease in
cash on delivery (COD) orders, and a remarkable expansion in digitally paid
orders. The abrupt flood in the utilization of online businesses resulted in a
demand to upscale the existing logistics networks. Businesses were increasingly
reliant on advanced logistical networks with the demand for competent delivery
partners increasing by 60% during the first 3 to 4 months of COVID-19.
Logistics companies are likely to invest more on technologies such as AI to
derive information and insights, such as delivery packaging, weight, and the
like from images, detect anomalies, perform quality assurance checks, or build
delivery schedules.
Analysts at Ken Research in their
latest publication “UAE
E-Commerce Logistics Market Outlook to 2025 – Driven by Growth in Online
Shoppers along with Introduction of New Age Technologies by Logistics Players”
observed that the e-commerce and e-commerce logistics market in UAE has a great
potential to grow supported by emerging e-commerce players in the country.
Covid-19 outbreak has further accentuated the growth of the market by
shifting major retailers on online platform for sustenance in the market. UAE
E-Commerce Logistics Market is expected to grow at a CAGR of 15.8% on the basis
of number of shipments delivered over the forecast period 2020-2025.
Key Segments
Covered
- By Accepted & Returned Orders
- Accepted Orders
- Returned Orders
- By Channel
- 3PL Players
- E-Commerce Merchants
- By Type of Shipments
- Domestic Shipments
- International Shipments
- By Area of Delivery
- Intercity
- Intracity
- By Mode
- Ground Shipments
- Air & Sea Shipments
- By Delivery Period
- Same Day Delivery
- 1-3 Day Delivery
- More than 3 Day Delivery
- By Type of Products
- Fashion & Accessories
- Consumer Electronics & Media
- Foods & Personal Care
- Home Care & Furniture
- Toys & Video Games
- Others (Consumer Health, Digital Music, Pet
Care, etc.)
- By Payment Mode
- Cash on Delivery
- Credit & Debit Cards
- Others (Digital Wallets, Paypal, GPay, etc.)
- Captive and 3PL E-Commerce Warehousing
- Warehousing Concentration in UAE
E-Commerce
Logistics Companies Covered
- Aramex
- iMile
- Jeebly
- Shipa
- Fetchr
- Emirates Post
- Team Express
- Quiqup
- Time Express
E-Commerce
Marketplace Platform Covered
- Amazon
- Noon
- Namshi
Key Target
Audience
- 3PL Logistics Companies
- Integrated Logistics Companies
- E-Commerce Marketplace Platform
- Retail Companies
- Logistics/Supply Chain Industry Associations
Time Period
Captured in the Report:-
- Historical Period – 2015-2020
- Forecast Period – 2020-2025
Key Topics
Covered in the Report
- UAE E-Commerce Market Overview
- Cross Comparison- Major E-Commerce Players in
UAE
- UAE E-Commerce Logistics Market Overview
- Cost Component for UAE E-commerce Logistics
Industry
- UAE E-Commerce Seasonal Demand
- UAE E-Commerce Logistics Market Size
- UAE E-Commerce Logistics Market Segmentation
2020
- UAE E-Commerce Warehousing Landscape
- UAE E-Commerce Warehousing Clusters
- UAE E-Commerce Shipments Pricing Analysis
- UAE E-Commerce Return Logistics Overview
- UAE E-Commerce Logistics Market Growth Drivers
- UAE E-Commerce Logistics Market Trends &
Developments
- UAE E-Commerce Logistics Market Government
Role and Initiatives
- UAE E-Commerce Logistics Market Logistics
Constraints
- UAE E-Commerce Logistics Market SWOT Analysis
- Competitive Landscape of UAE E-Commerce
Logistics Market
- UAE E-Commerce Logistics Market Cross
Comparison
- Future Market Size and Segmentations,
2020-2025F
- Covid-19 Impact on UAE E-Commerce Logistics
Market
- Analyst Recommendations
For more
information on the research report, refer to below link:
UAE
E-Commerce Logistics Market Research Report 2025
UAE E-Commerce Logistics Market Research Report 2021
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Contact Us:
Ken Research
Ankur Gupta, Head Marketing & Communications
support@kenresearch.com
+91-9015378249
