Consumer engagement on apps in the UAE, Saudi Arabia and Egypt was 1.6 times higher than in developed markets, the study showed. PA
Consumer engagement on apps in the UAE, Saudi Arabia and Egypt was 1.6 times higher than in developed markets, the study showed. PA
Consumer engagement on apps in the UAE, Saudi Arabia and Egypt was 1.6 times higher than in developed markets, the study showed. PA
Consumer engagement on apps in the UAE, Saudi Arabia and Egypt was 1.6 times higher than in developed markets, the study showed. PA

How companies in the UAE, Saudi Arabia and Egypt can take advantage of digitalisation


Alvin R Cabral
  • English
  • Arabic

Digital adoption and online spending are projected to grow in the Middle East, offering companies in the region several new opportunities to tap into, a McKinsey & Company study has shown.

The degree of digital adoption in the region has grown over the past six months, placing it on par with major economies in North America and Europe, according to the study, which focuses on the UAE, Saudi Arabia and Egypt.

The UAE, the Arab world's second-largest economy, has the highest degree of digitalisation, with 99 per cent of the population having access to the internet.

Digitalisation in Saudi Arabia, the Arab world's largest economy, is at 90 per cent while Egypt, which McKinsey described as having greatest potential to grow its digital capabilities, offers 71 per cent of its population access to the internet.

“Tailoring offerings by country and industry will be a crucial element in catering to digital consumers and capturing the full value from digital offerings,” McKinsey's analysts wrote in the report.

“Companies across industries also have an opportunity to reallocate a higher share of their advertising spending to digital channels to engage consumers more effectively.”

Enterprises and governments in the region are focusing on boosting their digital transformation due to the critical role it plays in the economy and society, as the world prepares for a future largely powered by technology.

The UAE and Saudi Arabia have unveiled several initiatives to promote the use of technology in daily activities and transactions.

Advantage, Middle East

With the Middle East having one of the highest rates of consumer digital engagement globally, companies can tap into the growing demand for online services, the study said.

“Companies in the region have an opportunity to create an advantage by developing cutting-edge features and functionality tailored to Middle East consumers that can be exported to other markets around the world,” McKinsey said.

However, trust in digital channels does not guarantee satisfaction, as companies need to focus on the factors consumers value the most.

“Companies need to prioritise user experience, product availability and information because these account for most user dissatisfaction,” the study said.

“The good news is that companies are in a position to improve their performance on each of these measures — and, by extension, consumer satisfaction.”

Apps lead the way

Consumers in the Middle East are “overwhelmingly” mobile-first, outpacing website use, the study found.

Saudi Arabia had the highest app engagement, with more than half of the consumers preferring this channel. App use in the UAE and Egypt was at 45 per cent and 40 per cent, respectively.

As a result, consumer engagement on apps in the three countries was 1.6 times higher than in developed markets in Europe and North America, where websites are still dominant, McKinsey said.

No other region in the study surpassed an app engagement of 40 per cent, with Asia-Pacific the closest at 38 per cent.

Consumers in Europe, North America and Latin America still prefer to use websites, the study found.

Greater online spend

The growth of digitalisation among consumers has led companies to improve their online platforms as they seek a bigger share of the increasingly competitive e-commerce space.

Digital consumers make up the majority of users in a number of industries, “reinforcing how digital channels have reshaped engagement and commerce”, McKinsey said.

Entertainment was the top category in the UAE, with 84 per cent of consumers preferring a fully digital experience. Banking, telecoms, travel and utilities rounded off the top five.

Meanwhile, grocery, health care and apparel lagged behind in all three countries regionally. However, this presents an opportunity, given the large number of untapped users in the region, the study suggested.

In the UAE, the underperformance of these three categories shows a pattern that might be influenced by Dubai’s strong shopping mall culture, McKinsey said, as “consumers might require a much better value proposition to switch to digital channels”.

Egypt, on the other hand, has lower digital adoption of financial services, both for banking and insurance, than its counterparts.

Travel was the leading category in all three countries, with at least 23 per cent of consumers saying they would spend 50 per cent or more in the coming years.

Overall, digital spending is projected to grow in the Middle East, with more than 50 per cent of consumers saying they are prepared to spend more while less than 10 per cent see themselves spending less, it said.

“It is no surprise that increased penetration and consumer adoption of digital channels have translated to more spending,” McKinsey said.

The specs: 2017 Ford F-150 Raptor

Price, base / as tested Dh220,000 / Dh320,000

Engine 3.5L V6

Transmission 10-speed automatic

Power 421hp @ 6,000rpm

Torque 678Nm @ 3,750rpm

Fuel economy, combined 14.1L / 100km

PROFILE OF HALAN

Started: November 2017

Founders: Mounir Nakhla, Ahmed Mohsen and Mohamed Aboulnaga

Based: Cairo, Egypt

Sector: transport and logistics

Size: 150 employees

Investment: approximately $8 million

Investors include: Singapore’s Battery Road Digital Holdings, Egypt’s Algebra Ventures, Uber co-founder and former CTO Oscar Salazar

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How to apply for a drone permit
  • Individuals must register on UAE Drone app or website using their UAE Pass
  • Add all their personal details, including name, nationality, passport number, Emiratis ID, email and phone number
  • Upload the training certificate from a centre accredited by the GCAA
  • Submit their request
What are the regulations?
  • Fly it within visual line of sight
  • Never over populated areas
  • Ensure maximum flying height of 400 feet (122 metres) above ground level is not crossed
  • Users must avoid flying over restricted areas listed on the UAE Drone app
  • Only fly the drone during the day, and never at night
  • Should have a live feed of the drone flight
  • Drones must weigh 5 kg or less
GAC GS8 Specs

Engine: 2.0-litre 4cyl turbo

Power: 248hp at 5,200rpm

Torque: 400Nm at 1,750-4,000rpm

Transmission: 8-speed auto

Fuel consumption: 9.1L/100km

On sale: Now

Price: From Dh149,900

The specs: 2018 Nissan Altima


Price, base / as tested: Dh78,000 / Dh97,650

Engine: 2.5-litre in-line four-cylinder

Power: 182hp @ 6,000rpm

Torque: 244Nm @ 4,000rpm

Transmission: Continuously variable tranmission

Fuel consumption, combined: 7.6L / 100km

Election pledges on migration

CDU: "Now is the time to control the German borders and enforce strict border rejections" 

SPD: "Border closures and blanket rejections at internal borders contradict the spirit of a common area of freedom" 

Pearls on a Branch: Oral Tales
​​​​​​​Najlaa Khoury, Archipelago Books

Ten tax points to be aware of in 2026

1. Domestic VAT refund amendments: request your refund within five years

If a business does not apply for the refund on time, they lose their credit.

2. E-invoicing in the UAE

Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption. 

3. More tax audits

Tax authorities are increasingly using data already available across multiple filings to identify audit risks. 

4. More beneficial VAT and excise tax penalty regime

Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.

5. Greater emphasis on statutory audit

There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.

6. Further transfer pricing enforcement

Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes. 

7. Limited time periods for audits

Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion. 

8. Pillar 2 implementation 

Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.

9. Reduced compliance obligations for imported goods and services

Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations. 

10. Substance and CbC reporting focus

Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity. 

Contributed by Thomas Vanhee and Hend Rashwan, Aurifer

Key facilities
  • Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
  • Premier League-standard football pitch
  • 400m Olympic running track
  • NBA-spec basketball court with auditorium
  • 600-seat auditorium
  • Spaces for historical and cultural exploration
  • An elevated football field that doubles as a helipad
  • Specialist robotics and science laboratories
  • AR and VR-enabled learning centres
  • Disruption Lab and Research Centre for developing entrepreneurial skills
World Cricket League Division 2

In Windhoek, Namibia - Top two teams qualify for the World Cup Qualifier in Zimbabwe, which starts on March 4.

UAE fixtures

Thursday February 8, v Kenya; Friday February 9, v Canada; Sunday February 11, v Nepal; Monday February 12, v Oman; Wednesday February 14, v Namibia; Thursday February 15, final

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%3Cp%3E%3Cstrong%3EUndergraduate%20courses%3C%2Fstrong%3E%3Cbr%3EInterior%20Design%3B%20Product%20Design%3B%20Visual%20Design%3B%20Fashion%20Design%20%26amp%3B%20Accessories%3B%20Fashion%20Styling%20%26amp%3B%20Creative%20Direction%3B%20Fashion%20Business%3B%20Foundation%20in%20Fashion%3B%20Foundation%20in%20Design%3Cbr%3E%3Cstrong%3EProfessional%20courses%3C%2Fstrong%3E%3Cbr%3EFashion%20e-Commerce%20%26amp%3B%20Digital%20Marketing%3B%20Fashion%20Entrepreneurship%3B%20Fashion%20Luxury%20Retail%20and%20Visual%20Merchandising%3Cbr%3E%3Cstrong%3EShort%20courses%3C%2Fstrong%3E%3Cbr%3EFashion%20design%3B%20Fashion%20Image%20%26amp%3B%20Styling%3B%20Fashion%20Trend%20Forecasting%3B%20Interior%20Design%3B%20Digital%20Art%20in%20Fashion%3Cbr%3EMore%20information%20is%20at%20%3Ca%20href%3D%22https%3A%2F%2Fwww.istitutomarangoni.com%2Fen%3Futm_source%3DLocal%26utm_medium%3Dorganic%26utm_campaign%3Dgmb%26utm_content%3Ddubai%22%20target%3D%22_self%22%3Ewww.istitutomarangoni.com%3C%2Fa%3E%3C%2Fp%3E%0A
Ukraine

Capital: Kiev

Population: 44.13 million

Armed conflict in Donbass

Russia-backed fighters control territory

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%3Cp%3EAriana%E2%80%99s%20Persian%20Kitchen%3Cbr%3EDinner%20by%20Heston%20Blumenthal%3Cbr%3EEstiatorio%20Milos%3Cbr%3EHouse%20of%20Desserts%3Cbr%3EJaleo%20by%20Jose%20Andres%3Cbr%3ELa%20Mar%3Cbr%3ELing%20Ling%3Cbr%3ELittle%20Venice%20Cake%20Company%3Cbr%3EMalibu%2090265%3Cbr%3ENobu%20by%20the%20Beach%3Cbr%3EResonance%20by%20Heston%20Blumenthal%3Cbr%3EThe%20Royal%20Tearoom%C2%A0%3C%2Fp%3E%0A
RESULTS

6.30pm Handicap (TB) US$65,000 (Dirt) 1,400m

Winner Golden Goal, Pat Dobbs (jockey), Doug Watson (trainer)

7.05pm Dubai Racing Club Classic Listed Handicap (TB) $88,000 (Turf) 2,410m

Winner: Walton Street, William Buick, Charlie Appleby.

7.40pm Dubai Stakes Group 3 (TB) $130,000 (D) 1,200m

Winner Switzerland, Tadhg O’Shea, Satish Seemar

8.15pm Singspiel Stakes Group 3 (TB) $163,000 (T) 1,800m

Winner Lord Giltters, Adrie de Vries, David O’Meara

8.50pm Al Maktoum Challenge Round-1 (TB) $228,000 (D) 1,600m

Winner Military Law, Antonio Fresu, Musabah Al Muhairi.

9.25pm Al Fahidi Fort Group 2 (TB) $163,000 (T) 1,400m

Winner Land Of Legends, Frankie Dettori, Saeed bin Suroor

10pm Dubai Dash Listed Handicap (TB) $88,000 (T) 1,000m

Winner Equilateral, Frankie Dettori, Charles Hills.

Updated: January 11, 2023, 3:00 AM