A lack of trust in online payments is the primary reason why just 6 per cent of Middle East internet users regularly shop online, a survey shows.
Despite a barrage of daily deals sites having launched in the region - including Groupon, Cobone and GoNabIt - most people in the region do not buy products or services via the Web.
According to a survey by Real Opinions, a market research company based in Dubai, 43 per cent of Web users have been deterred from shopping online because they do not trust payment systems.
A lack of suitable payment options, the low number of online retailers, unreliable delivery and poor website design were also cited as barriers.
Dan Healy, the chief executive of Real Opinions, said the reluctance to shop online was down to perceived fears, rather than the actual dangers of online fraud.
"It's perception management. The industry should be reassuring people more as to the security behind online transactions," he said.
Mr Healy said it was a "shared responsibility" between banks, credit-card issuers and online retailers to allay fears about online shopping.
Industry experts agreed the problem was down to negative perceptions rather than actual dangers.
"Technically, it is more dangerous to [use] your credit card in a restaurant than online," said Ari Kesisoglu, Google's regional manager for the Middle East and North Africa. "Online is significantly more secure than the traditional methods … There are so many encryption technologies."
Just 6 per cent of Web users in the region said they regularly buy products and services online, with 27 per cent saying they occasionally made purchases, according to Real Opinions.
That means 67 per cent of Middle East internet users never make purchases online. Given that the survey was conducted on the Web, the proportion of the total population - including non-internet users - that has never transacted online would be significantly higher.
Despite this, there is high demand for shopping online. The research found that 39 per cent of regional online users intend to make purchases over the Web but are not yet doing so, marking a great opportunity for regional businesses, said Mr Healy.
"This is going to help small and medium businesses who have limited choice in how to expand their businesses. It has enormous potential," he said. "There is a tremendous opportunity in the Middle East for e-commerce to grow, particularly for UAE businesses to expand their marketplace from 3.5 million in the UAE to over 70 million in the region."
According to JPMorgan, global e-commerce revenues are forecast to grow to US$680 billion (Dh2.49 trillion) this year, up by 18.9 per cent from last year.
But Middle East businesses are missing out on this growing industry by not providing online retail services. Just 5 per cent of UAE companies use the Web to sell their products or services, while only 11 per cent make purchases online, a survey by the Telecommunications Regulatory Authorityshowed.
According to Internetworldstats.com, there are almost 72.5 million internet users in the Middle East, representing just a third of the total population.
Mr Healy said he believed this figure underestimated the true number of internet users in the region, meaning the opportunity for online retail businesses was even greater.
"We think that the number of people who are able to access the internet in the Middle East is underestimated in the official figures, because of access to free Wi-Fi, shared devices and internet cafes," he said.
Mr Kesisoglu said he expected acceptance of e-commerce to grow, posing an opportunity for entrepreneurs.
"As the users start to see the benefits of online in general, they're going to start using this more and more often," he said.
"Where a lot of people are seeing problems, some people are seeing opportunities."
bflanagan@thenational.ae
MOUNTAINHEAD REVIEW
Starring: Ramy Youssef, Steve Carell, Jason Schwartzman
Director: Jesse Armstrong
Rating: 3.5/5
The Details
Article 15
Produced by: Carnival Cinemas, Zee Studios
Directed by: Anubhav Sinha
Starring: Ayushmann Khurrana, Kumud Mishra, Manoj Pahwa, Sayani Gupta, Zeeshan Ayyub
Our rating: 4/5
Dhadak
Director: Shashank Khaitan
Starring: Janhvi Kapoor, Ishaan Khattar, Ashutosh Rana
Stars: 3
Specs
Engine: Electric motor generating 54.2kWh (Cooper SE and Aceman SE), 64.6kW (Countryman All4 SE)
Power: 218hp (Cooper and Aceman), 313hp (Countryman)
Torque: 330Nm (Cooper and Aceman), 494Nm (Countryman)
On sale: Now
Price: From Dh158,000 (Cooper), Dh168,000 (Aceman), Dh190,000 (Countryman)
SPECS
%3Cp%3E%3Cstrong%3EEngine%3A%3C%2Fstrong%3E%20Dual%20electric%20motors%20with%20102kW%20battery%20pack%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EPower%3A%20%3C%2Fstrong%3E570hp%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ETorque%3A%3C%2Fstrong%3E%20890Nm%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ERange%3A%3C%2Fstrong%3E%20Up%20to%20428km%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EOn%20sale%3A%3C%2Fstrong%3E%20Now%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EPrice%3A%20%3C%2Fstrong%3EFrom%20Dh1%2C700%2C000%3C%2Fp%3E%0A
What is the Supreme Petroleum Council?
The Abu Dhabi Supreme Petroleum Council was established in 1988 and is the highest governing body in Abu Dhabi’s oil and gas industry. The council formulates, oversees and executes the emirate’s petroleum-related policies. It also approves the allocation of capital spending across state-owned Adnoc’s upstream, downstream and midstream operations and functions as the company’s board of directors. The SPC’s mandate is also required for auctioning oil and gas concessions in Abu Dhabi and for awarding blocks to international oil companies. The council is chaired by Sheikh Khalifa, the President and Ruler of Abu Dhabi while Sheikh Mohamed bin Zayed, Abu Dhabi’s Crown Prince and Deputy Supreme Commander of the Armed Forces, is the vice chairman.
The National's picks
4.35pm: Tilal Al Khalediah
5.10pm: Continous
5.45pm: Raging Torrent
6.20pm: West Acre
7pm: Flood Zone
7.40pm: Straight No Chaser
8.15pm: Romantic Warrior
8.50pm: Calandogan
9.30pm: Forever Young
500 People from Gaza enter France
115 Special programme for artists
25 Evacuation of injured and sick
Dhadak 2
Director: Shazia Iqbal
Starring: Siddhant Chaturvedi, Triptii Dimri
Rating: 1/5
MATCH INFO:
Second Test
Pakistan v Australia, Tuesday-Saturday, 10am daily at Zayed Cricket Stadium, Abu Dhabi
Entrance is free
The specs: 2018 Chevrolet Equinox
Price, base / as tested: Dh76,900 / Dh110,900
Engine: 2.0L, turbocharged in-line four-cylinder
Gearbox: Nine-speed automatic
Power: 252hp @ 5,500rpm
Torque: Torque: 352Nm @ 2,500rpm
Fuel economy, combined: 8.5L / 100km
Three trading apps to try
Sharad Nair recommends three investment apps for UAE residents:
- For beginners or people who want to start investing with limited capital, Mr Nair suggests eToro. “The low fees and low minimum balance requirements make the platform more accessible,” he says. “The user interface is straightforward to understand and operate, while its social element may help ease beginners into the idea of investing money by looking to a virtual community.”
- If you’re an experienced investor, and have $10,000 or more to invest, consider Saxo Bank. “Saxo Bank offers a more comprehensive trading platform with advanced features and insight for more experienced users. It offers a more personalised approach to opening and operating an account on their platform,” he says.
- Finally, StashAway could work for those who want a hands-off approach to their investing. “It removes one of the biggest challenges for novice traders: picking the securities in their portfolio,” Mr Nair says. “A goal-based approach or view towards investing can help motivate residents who may usually shy away from investment platforms.”
Killing of Qassem Suleimani
Ad Astra
Director: James Gray
Stars: Brad Pitt, Tommy Lee Jones
Five out of five stars
What the law says
Micro-retirement is not a recognised concept or employment status under Federal Decree Law No. 33 of 2021 on the Regulation of Labour Relations (as amended) (UAE Labour Law). As such, it reflects a voluntary work-life balance practice, rather than a recognised legal employment category, according to Dilini Loku, senior associate for law firm Gateley Middle East.
“Some companies may offer formal sabbatical policies or career break programmes; however, beyond such arrangements, there is no automatic right or statutory entitlement to extended breaks,” she explains.
“Any leave taken beyond statutory entitlements, such as annual leave, is typically regarded as unpaid leave in accordance with Article 33 of the UAE Labour Law. While employees may legally take unpaid leave, such requests are subject to the employer’s discretion and require approval.”
If an employee resigns to pursue micro-retirement, the employment contract is terminated, and the employer is under no legal obligation to rehire the employee in the future unless specific contractual agreements are in place (such as return-to-work arrangements), which are generally uncommon, Ms Loku adds.
Hotel Silence
Auður Ava Ólafsdóttir
Pushkin Press
Killing of Qassem Suleimani
Profile
Company name: Jaib
Started: January 2018
Co-founders: Fouad Jeryes and Sinan Taifour
Based: Jordan
Sector: FinTech
Total transactions: over $800,000 since January, 2018
Investors in Jaib's mother company Alpha Apps: Aramex and 500 Startups
UAE currency: the story behind the money in your pockets
