E-Commerce in the UAE: Facts and perspectives (15 photos) A joint conference co-organised by the French Business Council and the French Digital in Dubai.

1. eCommercein the UAE Facts and Perspectives

2. SocialMedia/SocialCommerce
HyperLocalMobileAdvertising
Audience&trafficAdvertising
Retail Stores Analytics
Mobile Ordering / Couponing / Loyalty
MobileWallet&PaymentSolution
Theconnectedconsumer
Iconictionis an omnichannelmarketing company addressing the connected consumer
Omnichannel

3. We are surrounded with ecommerce…

4. Internet: Inseparable from the act of purchase

5. UAE leading in the MENA e-commerce field
•By 2015, 1/3rdof MENA’s e-commerce will take place in the UAE alone
•Dubai is well positioned to become a regional hub for e- commerce
•Market Size
•Modern infrastructure (ports, airports, advanced telecom network)
•UAE named fiber capital of the world
•Existing trade and investment ties with GCC and MENA
•The easiest place for doing business in the region (world bank)
•A recent study from Accenture ranked UAE as the 3rdcountryin its use of digital government
•UAE lead with its smartphone penetration (above 82%) overall mobile phones penetration and broadband internet penetration

6. Regional eCommerceis set for substantial growth
Middle East & North Africa online commerce market (USD Bn)
Source: 2013 PayPal Insights: e-commerce in the Middle East

7. Cash on Delivery is a killer!
COD makes up ~80% of MENA E-commerce Market, but 20-30% of transactions fail at the door.
Courier charges for COD services are high & a hassle.
Merchants incur high costs of failed transactions (Shipping, last mile delivery, inventory storage…etc.)
Messes up eCommerceplayers Cash flow -You always need a credit line

8. eCommerceis done in any place via any device
Where are Middle Easternsmaking their purchases (in %)
Source: 2013 PayPal Insights: e-commerce in the Middle East

9. © 2014 PayPal Inc. All rights reserved. Confidential and proprietary. 9
North America
Western Europe
Nordics
Central, Eastern Europe
Middle East
Latin America
Asia Pacific
2
8
4
3
7
6
7
4
8
5
6
9
9
5
6
10
6
11
4
7
15
3
28
66
38
37
43
57
56
40
62
77
51
63
53
31
52
72
31
49
46
55
61
23
69
26
58
60
50
38
37
56
29
17
43
27
38
64
42
18
64
40
50
38
25
74
US
CA
UK
DE
FR
IT
ES
NL
CH
AT
SE
NO
DK
PL
RU
IL
TR
UA
BR
MX
AU
CN
Domestic only
Cross border and domestic
Cross border only
56%
A significant proportion of online shoppers claim to make cross border purchases, and almost all cross border shoppers also shop domestically.
Base: Online shoppers. N=12,349. Q. Thinking about shopping online, from which of the following country or geographies’ websites have you purchased in the past 12 months? Please include your home country if applicable.
%
Multi- country average* for CB
* Multi-country average not weighted by market sizeSelf-stated domestic and cross border purchasing in past 12 months
Cross border commerce is also a driving force in the UAE like in many markets

10. Mobile commerce is a major trend in UAE

11. Commerce!
Already a HUGE trend in Kuwait! Instagram commerce will become bigger in other countries across the Middle East in 2014

12. Mobile is a prime channel for both online and offline commerce
•65% of Namshitransactions are happening now on mobile!
•Over 50% of traffic of Cobonetraffic is on mobile in UAE and it reach even 60% in KSA

13. eCommerceis revolutionizing retail !
Buy online, return in-store
Buy online, pick-up in store
Buy online, fulfill through any store
Buy in-store, fulfill through online
Buy via mobile
Buy via social commerce site
Buy via call-center
Buy

14. Middle East overall e-commerce usage is still not mainstream..
The majority of people in MENA have not yet shop online.
•54% of respondents have never purchased airline tickets online
•64% of respondents have never purchased books online
•76% of respondents have never purchased movie/theater tickets online
•55% of respondents don’t purchase other items online
MBRSG’s Governance and Innovation Program in collaboration with Bayt.com, targeting
residents of 22 Arab countries. The survey fielding was conducted between March and April
2014 with respondents numbered at almost 3000. Responses were received from all countries
in the Arab region (Algeria, Bahrain, Comoros, Djibouti, Egypt, Iraq, Jordan, Kuwait, Lebanon,
Libya, Mauritania, Morocco, Oman, Palestine, Qatar, Saudi Arabia, Sudan, Syria, Tunisia, UAE
and Yemen). The sample consisted primarily of internet users as it was administered via an
online survey. 75% of the sample was male and 14% of the sample was between the ages of
15-24 and 44% were between the ages of 25-34. Countries most represented in the sample
size are Egypt, Saudi Arabia, Jordan, Algeria, the UAE and Morocco.

15. Thank You!
SébastienMarteau
CEO
+971 55 239 1609
Sebastien.Marteau@iconiction.com