- March 28, 2021
- Posted by: Waqas Siddiqui
- Category: Others
Digital Solutions Fueling the Growth of Businesses in UAE
A report conducted by ‘Visa’ in UAE suggested that a significant number of the companies operating in UAE are switching to digital solutions to recover in 2021. Small and Medium Sized Enterprises (SMEs) in UAE are optimistic about business recovery, with 3 out of 4 stating they feel positive that businesses will rebound from the pandemic-induced slowdown this year. Similarly, approximately 82% of the merchants in UAE said that their investments in digital payments had paid off and will play a major role in their business recovery.
A similar study conducted by ‘Godaddy’ suggested that UAE entrepreneurs have increased their digital initiatives to help attract and retain more customers. Approximately 36% of UAE entrepreneurs have increased their digital marketing activities to attract more customers, while 33% started selling their products and services online. Approximately 68% were sure that their business could survive a second wave of COVID-19 as big as the first one.
Digitalization of UAE Retail Market – 2021
The retail customers in UAE are actively switching to digital and contactless transactions. The increase in use of contactless payments was around 93% during the pandemic, while take away and home delivery were 87% and 78% respectively. UAE expects these spending trends to continue to grow in the post-pandemic era. While 60% of the companies which were surveyed mentioned that contactless payments were the preferred payment option among their customers, at the start of the pandemic only 18% of these companies mentioned that contactless payments were the preferred by the customers.
More than 38% of the retailers in the UAE that were surveyed said they have established an online presence in response to COVID-19. Nearly 86% are confident that online shopping will remain a preference even after the crisis. UAE retailers are leading the way in digitizing their business, as they feel that it is the key for their business recovery in 2021.
Investment Opportunities in IT Industry – UAE
With an increasing number of SMEs digitalizing their business, the demand for IT services is also on the raise in UAE. It is estimated that the digital wallet market value in UAE will increase at a rate of 24% reaching AED 8.5 billion (USD 2.3 billion) by the end of 2022. UAE provides an optimistic platform for both the existing companies and investors who are looking to expand their business in the Emirates. The upcoming EXPO 2020 will also favour the investors and businesses that are operating in UAE and will continue to benefit from them.
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