Emirates: Digital trade in the UAE is projected to grow at a compound annual rate of 12.3 percent from 2023 to 2028, fueled by the rise of “buy now, pay later” models and fintech systems.

A joint research paper, issued by the country’s Ministry of Economy and Abu Dhabi Chamber of Commerce and Industry, showed that more than 40 percent of consumers in the UAE rely on “buy now, pay later” models and fintech digital technology systems.

ADCCI CEO Ahmed Khalifa Al-Qubaisi said the research paper serves to strengthen his chamber’s position as a leading partner in the process of digital transformation in the business world.

“It aligns with the chamber’s strategy for digital transformation, aimed at attracting talent and expertise, exploring technological solutions, and integrating advanced AI technologies and tools such as Microsoft Copilot, into the current operational system at the Abu Dhabi Chamber,” he said.

Al-Qubaisi added this integration is intended to boost the level of productivity, improve the completion of daily tasks, increase customer satisfaction, and support the efforts of local and global businessmen and entrepreneurs.

He further said that the ADCCI continues its endeavors to enhance the quality of initiatives and projects dedicated to the private sector.

“The chamber employs various smart systems to analyze and process accurate data, as well as develop operational processes,” the CEO said.

He added that this approach aims to bolster sound decision-making and the formulation of effective strategic plans aligned with the aspirations of the business community in Abu Dhabi.

He noted that the paper provides a detailed overview of local, regional, and global regulatory frameworks and policies, key agreements, and the role of major international bodies such as the World Trade Organization in shaping the movement of traditional and digital trade and highlights new e-commerce practices that shape current trade dynamics.

The research paper revealed that about 49 percent of consumers in the UAE shop online frequently, with about 47 percent of the population relying on credit cards, which is much higher than the global average of 18 percent.

The research paper stated that it is expected that 20.1 percent of total global retail purchases will be completed online in 2024, while digital retail activity is expected to constitute around 25 percent of total global sales by 2027.