The Impact of Technology on the Economy of UAE Essay

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Introduction There is no doubt in the fact that e-commerce has constantly been on the rise within UAE and was been able to grasp the attention of the various consumers over the past few years. Brands like Visa and MasterCard have gained the utmost prominence due to this reason and this does reveal the fact that more than 50% people across the globe shop for various products and services. UAE has always been a very important market for the consumers around the world (Kessler, 2003). Various factors have influenced the growth of UAE over the past few years. UAE is a free port and is rich with oil and gas resources. This has made the country economically strong and has enabled the country to solidify its position in each and every sector. UAE…show more content…
Another factor which has contributed to the development of E-commerce within the UAE has been a huge increase in disposable income levels, which drives citizens to spend on other retail and luxury items. Thus it results in an increase in overall spending patterns, which increases the potential of E-commerce. It has been expected by many economists and financial analysts that E-commerce will gain greater prominence in the coming years. It has even been indicated that the growth in e-commerce activity of UAE e-commerce may well outpace the markets of more developed countries in the next few years. The advent of modern technological tools such as smart phones and Tablets has made shopping much easier for consumers and increases the potential for traders in the long run. UAE has a huge amount of mobile penetration within the Middle East and some consumers have even started to purchases online and have avoided going to malls and retail stores for any purchase. A recent research conducted by international merchant Visa has stated that online shopping has been on a huge rise in UAE and more than 3500 people in UAE was using e-commerce for shopping. The study has also helped in revealing the fact that UAE has the highest rate of online shopping across the Middle East for online shopping and has 51% of its online consumers who prefer online shopping (Alrawi & Sabry, 2009). Constant growth in online shopping
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