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.

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Al Wasl Football Club; six teams, five-a-side

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Bengaluru Royals: Paul Scholes
Mumbai Warriors: Ryan Giggs
Chennai Ginghams: Hernan Crespo
Telugu Tigers: Deco
Kerala Cobras: Michel Salgado

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Bayern Munich v Real Madrid

When: April 25, 10.45pm kick-off (UAE)
Where: Allianz Arena, Munich
Live: BeIN Sports HD
Second leg: May 1, Santiago Bernabeu, Madrid

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  • Views of key Muslim Brotherhood ideologue, Sayyid Qutb, have “consistently been understood” as permitting “the use of extreme violence in the pursuit of the perfect Islamic society” and “never been institutionally disowned” by the movement.
  • Muslim Brotherhood at all levels has repeatedly defended Hamas attacks against Israel, including the use of suicide bombers and the killing of civilians.
  • Laying out the report in the House of Commons, David Cameron told MPs: "The main findings of the review support the conclusion that membership of, association with, or influence by the Muslim Brotherhood should be considered as a possible indicator of extremism."
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Microsoft Exchange server exploitation: March 2021; attackers used a vulnerability to steal emails

Kaseya attack: July 2021; ransomware hit perpetrated REvil, resulting in severe downtime for more than 1,000 companies

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  • Do not submit your application through the Easy Apply button on LinkedIn. Employers receive between 600 and 800 replies for each job advert on the platform. If you are the right fit for a job, connect to a relevant person in the company on LinkedIn and send them a direct message.
  • Make sure you are an exact fit for the job advertised. If you are an HR manager with five years’ experience in retail and the job requires a similar candidate with five years’ experience in consumer, you should apply. But if you have no experience in HR, do not apply for the job.

David Mackenzie, founder of recruitment agency Mackenzie Jones Middle East

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Robo-advisers use an online sign-up process to gauge an investor’s risk tolerance by feeding information such as their age, income, saving goals and investment history into an algorithm, which then assigns them an investment portfolio, ranging from more conservative to higher risk ones.

These portfolios are made up of exchange traded funds (ETFs) with exposure to indices such as US and global equities, fixed-income products like bonds, though exposure to real estate, commodity ETFs or gold is also possible.

Investing in ETFs allows robo-advisers to offer fees far lower than traditional investments, such as actively managed mutual funds bought through a bank or broker. Investors can buy ETFs directly via a brokerage, but with robo-advisers they benefit from investment portfolios matched to their risk tolerance as well as being user friendly.

Many robo-advisers charge what are called wrap fees, meaning there are no additional fees such as subscription or withdrawal fees, success fees or fees for rebalancing.

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The two riders are among several riders in the UAE to receive the top payment of £10,000 under the Thank You Fund of £16 million (Dh80m), which was announced in conjunction with Deliveroo's £8 billion (Dh40bn) stock market listing earlier this year.

The £10,000 (Dh50,000) payment is made to those riders who have completed the highest number of orders in each market.

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A widely accepted definition was made by the All Party Parliamentary Group on British Muslims in 2019: “Islamophobia is rooted in racism and is a type of racism that targets expressions of Muslimness or perceived Muslimness.” It further defines it as “inciting hatred or violence against Muslims”.

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Company name: NutriCal

Started: 2019

Founder: Soniya Ashar

Based: Dubai

Industry: Food Technology

Initial investment: Self-funded undisclosed amount

Future plan: Looking to raise fresh capital and expand in Saudi Arabia

Total Clients: Over 50

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Scotland 54-17 Fiji
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Education: Mr Al Bahar was born in 1979 and graduated in 2008 from the Judicial Institute. He took after his father, who was one of the first Emirati lawyers

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This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.

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Women’s World Twenty20 Qualifier

Jul 3- 14, in the Netherlands
The top two teams will qualify to play at the World T20 in the West Indies in November

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Humaira Tasneem (captain), Chamani Seneviratne, Subha Srinivasan, Neha Sharma, Kavisha Kumari, Judit Cleetus, Chaya Mughal, Roopa Nagraj, Heena Hotchandani, Namita D’Souza, Ishani Senevirathne, Esha Oza, Nisha Ali, Udeni Kuruppuarachchi

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Updated: January 11, 2023, 3:00 AM