Robust demand drives growth of UAE consumer electronics sector

Total sales value of the UAE consumer electronics market forecast to reach Dh12.3 billion by 2021 Total sales value of the UAE consumer electronics market forecast to reach Dh12.3 billion by 2021

The value and volume of sales of consumer electronics in the UAE is expected to continue to grow on an upward trajectory, with recent forecasts from Euromonitor International predicting the total sales value to grow steadily and reach Dh12.3 billion by 2021, while the volume is expected to rise by nearly 2 per cent over the next five years.
H.E. Hamad Buamim, President and CEO, Dubai Chamber of Commerce and Industry told Khaleej Times: "This robust outlook is supported by several strong economic indicators and factors such as the UAE's fast-growing population and growing number of tourists. Such factors are positively impacting the consumption of consumer electronics and appliances. Experts predict that increasing purchasing power and improving lifestyles will foster the demand for smart home appliances in the UAE."
Rising income growth, Expo 2020, the steady growth of hospitality and residential real estate markets, digitalisation and an economic recovery in emerging markets, are all important trends that are boosting demand for purchasing and trading UAE consumer electronics. 
H.E. Buamim said: "Within the UAE, the growing number of shopping festivals and promotions, and the ongoing expansion of the UAE's hospitality sector are driving consumption in the market, while consumers are benefitting from bigger selections as the number of shopping malls and centres continue to rise. We have also seen stronger demand for energy-efficient products as more consumers realise the benefits of buying these types of home appliances." 
Hypermarkets currently account for the lion's share of consumer electronics sales in the UAE, however, the contribution of e-commerce is gradually increasing as more consumers turn to digital devices to access products and services. 
According to H.E. Buamim, e-commerce is expected to accelerate and become the fastest growing retail channel of the UAE thanks to increased connectivity and smart government initiatives that encourage a digital lifestyle. Furthermore, artificial intelligence, digitalisation, rapid urbanisation, the rise of the middle class in emerging markets and the adoption of smart city solutions will likely boost demand for electronic products and appliances in the long term.
TRADING HUB
Over the years, Dubai has established itself as a logistics hub for trading machinery and electronics in the Gulf region. It is also one of the major suppliers of these products to the Middle East, Africa, CIS and Latin American countries. "In 2016, Dubai's imports of machinery and electronics reached Dh250.5 billion, with China being the top supplier of machinery and electronics to the emirate. During the same year, Saudi Arabia was the largest importer of machinery and electronics from Dubai," he highlighted.
According to a Euromonitor report, the demand for electronic products should remain high in Eastern European countries such as Russia, Poland, Belarus, as well as emerging markets across Latin America and Africa. This trend presents plenty of growth opportunities for UAE exporters of consumer electronics that are keen to expand their global reach.
BEST-SELLING PRODUCTS
Portable consumer electronics such as mobile phones, imaging devices, portable players are still the most popular with shoppers, accounting for around half of all electronics sold in the UAE. Computers and peripherals are the second largest category, followed by in-home consumer electronics and in-car entertainment.
Within the portable devices category, mobile phones account for the largest share of sales, followed by imaging devices, portable players and wearable electronics. "These findings come as no surprise when you consider the fact that the UAE has one of the highest Internet and mobile penetration rates in the world," said Dubai Chamber's President and CEO.
Major electronic appliances, such as refrigerators, home laundry appliances, large cooking appliances, microwaves and dishwashers, continue to record steady growth. The values of sales within this sub-category is projected to grow by a Compound Annual Growth Rate (CAGR) of 4.9 per cent to hit Dh2.1 billion by 2021.
RAISING INDUSTRY STANDARDS  
Established earlier this year under the umbrella of Dubai Chamber, the Retail Business Group has several strategic goals including fostering cooperation among retailers in Dubai, and serving common interests and promoting transparency within the sector. Addressing common concerns of members and retailers in the emirate, raising industry standards, sharing best business practices, organising and supporting retail-related events, are among the main objectives of the Group.
The business group, represented by many of the UAE's leading retailers, will liaise and coordinate the calendar of sale and promotions with Dubai Tourism, the Dubai Shopping Festival Office and the Department of Economic Development throughout the calendar year.
By supporting the business group, the Chamber aims to protect the interests of retailers in Dubai and provide an ideal platform for industry stakeholders to collaborate. 
H.E. Buamim said: "Retail is one of the main engines of growth fuelling the UAE's economy, so it is incredibly important to ensure that key stakeholders are working together to solve challenges and align their efforts to enhance the competitiveness of the sector and strengthen Dubai's position as one of the world's top shopping destinations."
- deepa@khaleejtimes.com

• Supplements