The UAE leads the way in the GCC for e-Commerce spending with sales close to $2 billion, VISA said in a new study published Sunday in partnership with Interactive Media in Retail Group International (IMRG). It said the UAE's online spending equated to 55-60 percent of total GCC e-Commerce sales last year. The UAE government was leading the way for e-Commerce growth with the Telecommunications Regulatory Authority (TRA) helping to create a shopper-friendly e-Commerce environment, the study said. Total online spending by GCC consumers are estimated to be between $3-$3.5 billion, and are expected to reach $5 billion by the end of 2011, the study added. 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). Last month, the TRA announced the launch of a national electronic trust mark aimed at improving consumer confidence in e-commerce. The TRUSTae initiative is focused on promoting the online retail market as “a secure and safe environment”. The number of people using the Internet to make purchases in the UAE rose to 42 percent last year, up from 29 percent in 2009, according to a MasterCard survey on online shopping in March. Kamran Siddiqi, general manager for Visa Middle East, said: “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. “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, he said there were issues in the GCC with the lack of trust and payment security regularly being cited as key concerns for people when choosing whether to shop online. Internet usage in the region has grown by a staggering 1,500 percent since the year 2000, from a mere 1.2 million in 2000 to a massive 18.7 million in 2010, Visa added.
