The Reality and Prospects of E-commerce in the Emirate of Abu Dhabi

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1 The Reality and Prospects of E-commerce in the Emirate of Abu Dhabi The Reality and Prospects of E-commerce in the Emirate of Abu Dhabi October 2010 Economic Studies Section

2 Executive Summary: E-commerce has gained solid grounds and maintained a growing role and significance, especially in international trade and economic transactions, within the region and across countries worldwide. E-transactions and dealings turned into- an urgent sophisticated modern requirement and an economic prerequisite in the first place. The government of Abu Dhabi has realized this fact very early, so it sought to provide requirements, and developed essential tools and mechanisms in harmony with set policies and goals of economic development. With the fast pace of development of e-commerce and its infrastructure in the emirate and despite the low rates of illiteracy, the Emirate today stands as the center of attraction for the use e-commerce and its diversified applications. Although e-commerce in the UAE is recent, but telecommunications and information technologies are considered as highly advanced in terms of quality, coverage and use of sophisticated techniques. UAE acquired the 23 rd rank globally in the Network Readiness Index according to the report, and ranked first in the Arab world. What distinguishes Abu Dhabi experience is the number of important initiatives in this area, and broad prospects of maturity, e-payment, and e-certification applications; with the increasing awareness of the importance of ITC environment, the green technology and sustainability of information technology. This provides significant opportunities for e-commerce, that could accelerate the implementation of Abu Dhabi Economic Vision 2030, and which is based on the knowledge economy. E-commerce would also enable utilizing the best use of the potential benefits in Abu Dhabi in the field of foreign, domestic, retail trade; and provide growth opportunities for small and medium enterprises. Benefits include widening scopes of business activities for members of the community, including activities, conducted by women at the administrative, social and economic levels. It provides opportunities for distance learning, e-learning and enrollment in virtual universities through the Internet and ITC applications. The services sector is one of the leading sectors in Abu Dhabi, which benefits from e-commerce applications, particularly services that can be supplied across-the-border such as consultancy, advertising, marketing, The Reality and Prospects of E- commerce in the Emirate of Abu Dhabi 2

3 sales and purchases of goods and services that can be handled digitally, such as software, films and music. There is great potential for enhancement of indicators pertinent to global e-maturity, such as E-government Readiness Index, Access to Internet Index, and the ITC Index. This endeavor requires identifying strengths and weaknesses and obstacles faced by the emirate in developing e-maturity. The E- government program should be restructured and modeled in accordance with the recommendations, programs and global outcomes, in coordination and cooperation with stakeholders (business, education, telecommunications and government sectors). The following table cites findings and recommendations: Findings, Recommendations and Entities Entrusted with Implementation Findings Recommendations Entities Entrusted with Implementation E-commerce in the UAE is recent, However; telecommunications services and information technology in the UAE are considered as highly advanced in terms of quality, coverage and use of advanced technology compared to other countries in the region, with potentials of further development in these services. UAE ranked 23 rd. in the Network Readiness Index according to the report and ranked first among Arab States. Further development of ITC technology in UAE and enhancing services related to electronic payment and e- certification. Developing ITC production capacity, and encouraging investment in facilities and incubators for production of information and communication technology Achieving more advanced positions in the area of Network Readiness and other related indicators. Encouraging government institutions and other private companies in the emirate to pay attention to green technology and the Etisalat Abu Dhabi Systems and Information Center Etisalat Abu Dhabi Systems and Information Center The Reality and Prospects of E- commerce in the Emirate of Abu Dhabi 3

4 Estimates indicate that the volume of e-commerce in UAE exceeds AED 128 billion, comprising 35% of the volume of e-commerce in GCC countries. E-commerce applications widen the range of opportunities for foreign domestic and retail trade. The e-commerce helps small and medium enterprises in the development of their business, which in turn, leads to the maximization of value added, and an increasing sales volume. E-commerce applications expand the activities and work of community members especially the activities carried out by women at managerial, social or economic levels sustainability of IT. Encouraging and supporting the use of ecommerce applications in areas of economic activities, trade and services, especially in (across borders services) Encouraging and supporting the use e-commerce in foreign, domestic and retail trade. Encourage and the use of e- commerce in small and medium enterprises. Raising awareness in all areas of e-commerce and stressing its importance for all individuals, especially women. Ministry of Economy Khalifa Fund General Women s Union The Reality and Prospects of E- commerce in the Emirate of Abu Dhabi 4

5 E-commerce allows the citizens of the Emirate of Abu Dhabi, to enroll in distance learning, e- learning and virtual universities through Internet and ITC techniques. E-commerce offers great opportunities for UAE citizens in the Emirate of in distance learning, e- learning and virtual universities using the Internet and supportive ITC techniques The promotion of distance learning e-learning and establishment of specialized virtual universities and the dissemination of the concepts of the knowledge economy. Mandating and entrusting Abu Dhabi Centre for Knowledge Economy to prepare educational and training programs that can be accessed through electronic networks. Initially these programs should be intended to DED staff and later expanded all prospective learners. These programs may form the nucleus of a virtual university. Ministry of Higher Education Abu Dhabi Center for Knowledge Economy The Reality and Prospects of E- commerce in the Emirate of Abu Dhabi 5