The e-commerce market in the Middle East, Africa and South Asia will grow at an annual rate of 18.4 per cent to $148.5 billion by next year, according to a new report.
This compares with an average growth of 16.6 per cent globally, a report by Dubai CommerCity, the first dedicated e-commerce free zone in MEASA, showed.
The regional e-commerce sector is witnessing “significant growth, which is driven by the confidence of its business community and ecosystem”, Amna Lootah, assistant director general of Dubai Airport Freezone Authority and a board member at CommerCity, said.
“This has also been led by the continuously changing consumer behaviour and the adaptation of advanced technologies that played a key role in easing the overall consumer shopping experience.”
E-commerce transactions have boomed amid the coronavirus outbreak as movement restrictions to contain the pandemic prompted people to shop online.
The Gulf region alone registered a 214 per cent annual increase in cross-border online sales by June last year, CommerCity said.
The MEASA business-to-consumer products e-commerce market equates to about 2.5 per cent of the global B2C e-commerce market, it added.
South Asia represents the largest sub-regional e-commerce market, with India accounting for the bulk of sales in the MEASA region. The GCC is expected to register the highest growth between 2019 and 2022, with Saudi Arabia and the UAE – the Arab world’s largest economies – taking the lead at 39 per cent and 38 per cent annual growth, respectively.
“This report shows the potential growth expected to take place in the e-commerce sector. It will help local, regional and multinational companies to better understand the B2C product market in the MEASA region,” DeVere Forster, chief operating officer of Dubai CommerCity, said.
“It will also guide the regional government entities and industry bodies to explore potential developments that can better facilitate the e-commerce sector at a regional and global level.”
The findings of the report suggest that the affluent, young population and cross-border e-commerce platforms are the two strongest growth drivers of the e-commerce industry in the MEASA region.
Other factors include high levels of internet penetration and smartphone and social media adoption, government policies and ease of doing business.
However, for the MEASA region to become a competitive global player, the report suggests that there are key structural barriers that must be addressed by the public and private sectors.
It provides five broad strategic considerations to overcome key e-commerce barriers. These include a robust policy framework, consumer awareness and trust building, improved logistics and postal services, digital infrastructure and global collaboration.
No_One Ever Really Dies
N*E*R*D
(I Am Other/Columbia)
The specs
Engine: 3.0-litre six-cylinder turbo
Power: 398hp from 5,250rpm
Torque: 580Nm at 1,900-4,800rpm
Transmission: Eight-speed auto
Fuel economy, combined: 6.5L/100km
On sale: December
Price: From Dh330,000 (estimate)
Who's who in Yemen conflict
Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government
Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council
Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south
Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory
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.
Gifts exchanged
- King Charles - replica of President Eisenhower Sword
- Queen Camilla - Tiffany & Co vintage 18-carat gold, diamond and ruby flower brooch
- Donald Trump - hand-bound leather book with Declaration of Independence
- Melania Trump - personalised Anya Hindmarch handbag
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
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
SPECS
%3Cp%3EEngine%3A%20Supercharged%203.5-litre%20V6%0D%3Cbr%3EPower%3A%20400hp%0D%3Cbr%3ETorque%3A%20430Nm%0D%3Cbr%3EOn%20sale%3A%20Now%0D%3Cbr%3EPrice%3A%20From%20Dh450%2C000%0D%3Cbr%3E%3C%2Fp%3E%0A
