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• Internet use in the region is up 150% in the last decade
• The UAE has largest share of e-Commerce sales in the region with almost $2 billion

Dubai, 20 November 2011: Visa, one of the world’s leading payment solutions providers, has partnered with Interactive Media in Retail Group International (IMRG), the industry body for global e-Retail, to launch a new quarterly overview of the burgeoning e-Commerce market across the GCC.

The in-depth study, which is part of Visa’s ongoing drive to build e-Commerce in the region, identifies current levels of e-Commerce performance and potential by assessing the breadth of existing research undertaken in the region. It covers trends, data and forecasts concerning e-Commerce in the GCC as part of a world-class comparison with key markets.

UAE leads the way for e-Commerce spend in the region
The inaugural report shows that total B2C (business to consumer) e-Commerce sales in the UAE are estimated to have grown to almost $2 billion in 2010, which equates to approximately 55 – 60% of total GCC e-Commerce sales which are estimated to be between $3 and $3.5 billion, and expected to reach $5 billion by the end of 2011.

The Kingdom of Saudi Arabia has the next largest share of the market, with an estimated $520 million, followed by Qatar ($375 million), Kuwait ($280 million), Bahrain ($175 million) and Oman ($70 million).

Government setting impressive example
The UAE government is leading the way for e-Commerce in the country with the Telecommunications Authority designated to create an effective e-Commerce environment. Meanwhile in Dubai specifically, the e-Pay gateway has had a huge impact, enabling customers to settle fees of e-government services online on a 24/7 basis in a secure environment. This endorsement is significant in that it encourages further internet usage and consequently online shopping.

“E-Commerce is without doubt one of the crucial drivers for the world economy, and increasingly the regions. With such a significant increase in internet usage, it’s no surprise that the internet is quickly becoming the cornerstone for business and communication, especially as the UAE is such an important financial hub,” said Kamran Siddiqi, General Manager for Visa Middle East. “However, there’s still some way to go if e-Commerce in the Emirates and the wider the region is to meet its full potential.”

Stephen Leeds, e-Commerce Business Leader for Visa Middle East, added: “Online shopping is still in its infancy in the region but all the signs are there that it will continue to grow, such as government commitment, retailer investment and –most importantly – a young population open to trying new technologies and innovations.

“However, we’re still faced with the same barriers here that we see around the world, with lack of trust and payment security regularly being cited as key concerns for people when choosing whether to shop online. As one of the world’s largest retail electronic payments networks, Visa supports the e-Commerce industry in the UAE by providing payment systems which are trusted across the globe, helping to drive growth by giving Visa cardholders reassurance and confidence when purchasing online.”

Aad Weening, Head of International and Research at IMRG International said: “It’s clear that there is huge potential for e-Commerce to grow further and it is therefore vital that more becomes known about all aspects of online shopping in terms of data, impact of the internet economy, consumer behaviour and attitude in order to demonstrate the business opportunities for international investors but also initiatives to set up domestic sites. This will not only increase the available offer but will at the same time inspire trust and confidence among consumers.”

With all the private and government initiatives in place, as well as key trends indicated in the report, along with a growing economy and high disposable incomes, the GCC will witness a further increase in Internet penetration and usage, and consequently enable and further online shopping.

Uniquely, Visa will be making the report available to businesses and the government to help them understand the significant trends in the region and plan their e-Commerce strategies – a particularly important area of focus as internet usage in the region has grown by a staggering 1500% since the year 2000, from a mere 1.2 million in 2000 to a massive 18.7 million in 2010.

-Ends-

About Visa
Visa is a global payments technology company that connects consumers, businesses, financial institutions and governments in more than 200 countries and territories to fast, secure and reliable digital currency. Underpinning digital currency is one of the world’s most advanced processing networks—VisaNet—that is capable of handling more than 20,000 transactions a second, with fraud protection for consumers and guaranteed payment for merchants. Visa is not a bank, and does not issue cards, extend credit or set rates and fees for consumers. Visa’s innovations, however, enable its financial institution customers to offer consumers more choices: Pay now with debit, ahead of time with prepaid or later with credit products. For more information, visit www.corporate.visa.com.

About IMRG
IMRG (Interactive Media in Retail Group) is the industry association for global e-retail.  Formed in 1990, IMRG is setting and maintaining pragmatic and robust e-retail standards to enable fast-track industry growth, and facilitates its community of members with practical help, information, tools, guidance and networking.  For more information please visit www.imrg.org  or contact Andy Mulcahy, Communications Executive, IMRG +44(0)20 7716 5607,  press@imrg.org  

Contact:

Visa: Lisa Flanagan, DABO & CO - Tel: +971 4 344 4901 or email: lisa.f@daboandco.com