Digital Trade in the UAE Set to Skyrocket with “Buy Now, Pay Later” Models and Fintech Systems
RIYADH: Brace yourself for the digital trade revolution in the UAE, as it is projected to soar at a compound annual rate of 12.3 percent from 2023 to 2028. This growth will be fueled by the increasing popularity of “buy now, pay later” models and the integration of fintech systems.
Research Paper by Ministry of Economy and Abu Dhabi Chamber of Commerce and Industry
A groundbreaking joint research paper, released by the Ministry of Economy and Abu Dhabi Chamber of Commerce and Industry, revealed that over 40 percent of consumers in the UAE are embracing “buy now, pay later” models and fintech digital technology systems.
ADCCI CEO Ahmed Khalifa Al-Qubaisi on the Chamber’s Digital Transformation Strategy
ADCCI CEO Ahmed Khalifa Al-Qubaisi hailed the research paper as a pivotal step in solidifying the chamber’s position as a key player in the digital transformation of the business landscape. He emphasized the chamber’s strategy for digital transformation, which focuses on attracting talent, exploring technological solutions, and implementing advanced AI technologies like Microsoft Copilot.
Boosting Productivity and Customer Satisfaction
Al-Qubaisi highlighted that the integration of these technologies aims to enhance productivity, streamline daily tasks, elevate customer satisfaction, and support the endeavors of local and global businessmen and entrepreneurs. The ADCCI remains committed to enhancing the quality of initiatives and projects dedicated to the private sector.
Utilizing Smart Systems for Data Analysis and Strategic Planning
The CEO mentioned that the chamber employs smart systems for accurate data analysis and developing operational processes. This approach is geared towards facilitating sound decision-making and formulating effective strategic plans that align with the aspirations of the business community in Abu Dhabi.
Shaping the Future of Traditional and Digital Trade
The research paper provides a comprehensive overview of local, regional, and global regulatory frameworks, key agreements, and the role of major international bodies like the World Trade Organization in shaping the movement of traditional and digital trade. It also sheds light on new e-commerce practices that are reshaping current trade dynamics.
Explosive Growth in Online Shopping and Digital Retail Activity
The research paper unveiled that nearly 49 percent of consumers in the UAE frequently shop online, with 47 percent of the population relying on credit cards – significantly higher than the global average of 18 percent. It is anticipated that 20.1 percent of total global retail purchases will be completed online in 2024, with digital retail activity expected to constitute approximately 25 percent of total global sales by 2027.