UAE: 44% of residents browse in-store but shop online, says report
Nearly half of UAE shoppers (44%) are turning to online platforms for better product choices, even after browsing items in-store, highlighting a major shift in consumer behavior, according to a new study by Checkout.com.
The report reveals a growing reliance on AI-powered shopping tools such as visual search, virtual try-ons, and intelligent chatbots, making the UAE one of the most advanced markets for digital shopping innovations.
More than a third, 37 per cent, have utilised visual search AI to find products more efficiently. From virtual try-ons to AI-powered chatbots, the report cites that consumers in the UAE are more likely to engage with intelligent shopping tools than shoppers in other markets.
"The data from this year's report clearly highlights the UAE residents' growing appetite for solutions that not only simplify their daily interactions but also meet the increasing need for convenience, security, and innovation in their shopping and payment behaviours," said Remo Giovanni Abbondandolo, general manager for Mena at Checkout.com.
"The UAE government has played a key role in fostering a digital ecosystem that enhances the convenience and security of online transactions. This proactive approach has laid a solid foundation for the widespread adoption of advanced technologies," he added.
Cash-on-delivery plummets
The UAE has one of the world's highest internet and mobile penetration rates, making online purchases smoother and faster, especially after the coronavirus pandemic.
Furthermore, approximately 62 per cent of UAE consumers plan to increase their online shopping next year, with the categories most anticipated to benefit from increased transactions being travel, food deliveries, and government and public services.
As more consumers embrace the convenience and accessibility of digital shopping, the preference for cash-on-delivery in the UAE continues to decline sharply. Since 2020, cash-on-delivery usage has plummeted by 53 per cent.
Routine online purchases growing
The study found that more consumers are turning to digital platforms for their routine purchases, with food delivery leading the way as the top-performing vertical, capturing a massive 57 per cent share of online purchases. In comparison, clothing and fashion came in second with 48 per cent online spending, and travel came in third at 38 per cent.
It revealed that impulsive buying is no longer in the bag. "In fact, it might be an 'impulse inspiration' to look online. Retailers are adapting by embedding digital tools into physical stores, from QR codes for discounts to product previews powered by augmented reality," it said.
The survey found that the country is a global leader in adopting Generative Chat platforms, as 46 per cent of shoppers have used these tools to enhance their online shopping experience.
The report noted that the UAE stands out as a mature geography with widespread adoption of digital wallets and a growing market for investment apps, alongside developing peer-to-peer payment and digital insurance solutions. Around 42 per cent of UAE consumers are now using apps or digital wallets to send money at least once a week, and 35 per cent are using fintech platforms for investment and wealth management.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Zawya
20 minutes ago
- Zawya
Dubai Aerospace signs $300mln 3-year term loan
Dubai Aerospace Enterprise Ltd. has signed a $300 million three-year unsecured term loan with Bank of China (Dubai) Branch, Bank of China Limited, London Branch and Bank of China (Hong Kong) Limited. The aircraft lessor, which is fully owned by Investment Corporation of Dubai, will use the loan for general corporate purposes and future financing needs of the business. Firoz Tarapore, CEO of DAE, said the transaction with BOC 'provides us with additional liquidity to support our ongoing commitment to meeting the needs of our airline customers while maintaining a modern and efficient fleet'. In March 2024, DAE signed $420 million 5-year unsecured term loan with China Construction Bank (DIFC Branch) and China Construction Bank (Asia) Corporation Limited. As of March 31, 2025, the company had a total debt of $8 billion, of which 80% was unsecured. Net debt-to-equity ratio was 2.43x. (Writing by Brinda Darasha; editing by Seban Scaria)
Zawya
20 minutes ago
- Zawya
DAE signs US$300mln 3-year unsecured term loan
Dubai, U.A.E. – Dubai Aerospace Enterprise (DAE) Ltd ('DAE'), the global aviation services company, today announced that it has signed a US$300 million 3-year unsecured term loan with Bank of China (Dubai) Branch, Bank of China Limited, London Branch and Bank of China (Hong Kong) Limited ('BOC'). The loan will be used for general corporate purposes and will support the future financing needs of the business. Firoz Tarapore, Chief Executive Officer of DAE, commented, 'This transaction with BOC provides us with additional liquidity to support our ongoing commitment to meeting the needs of our airline customers while maintaining a modern and efficient fleet. We are pleased to deepen our relationship with Bank of China and look forward to continuing our collaboration with the entire Bank of China group in the years ahead.' Pan Xinyuan, General Manager of Bank of China (Dubai) Branch, said: 'Bank of China values its growing relationship with DAE and is pleased to support this strategic financing. The successful execution of this transaction reflects the strength of our global network and our ability to deliver tailored solutions that meet the evolving needs of our clients across the aviation sector. In the future, Bank of China will continue to contribute to deepening China-UAE relations and support the development of UAE enterprises.' About DAE Dubai Aerospace Enterprise (DAE) Ltd is a globally recognized aviation services corporation with two divisions: DAE Capital and DAE Engineering. Headquartered in Dubai, DAE serves over 200 airline customers in over 85 countries from its eight office locations in Dubai, Dublin, Limerick, Amman, Singapore, Miami, New York, and Seattle. DAE Capital is an award-winning aircraft lessor with an owned, managed, and committed fleet of approximately 750 Airbus, ATR, Embraer, and Boeing aircraft with a fleet value of US$22 billion. DAE Engineering provides regional MRO services to customers in Europe, Middle East, Africa, and South Asia from its state-of-the-art facility in Amman, Jordan, accommodating up to 17 wide and narrow body aircraft. It is authorized to work on 15 aircraft types and has regulatory approval from over 25 regulators globally. More information can be found on the company's website at
Khaleej Times
23 minutes ago
- Khaleej Times
Eid Al Adha: Some UAE hotels hit 100% occupancy amid Schengen, US visa delays
Hotels across the UAE are experiencing a surge in bookings ahead of the Eid Al Adha holidays, with many properties reporting full or near-full occupancy. This uptick is largely driven by residents opting for staycations due to ongoing difficulties securing US and Schengen visa appointments, as well as an influx of regional visitors. Several hotels have already reached full capacity for the four-day Eid break, while others expect to hit 100 per cent occupancy in the coming days as last-minute bookings increase. UAE residents will enjoy a four-day Eid Al Adha holiday from Thursday to Sunday this week. As previously reported by Khaleej Times, visa appointments for travel to Schengen countries remain unavailable until mid-August due to overwhelming demand during the summer season. Tarek Labib, Head of Commercial for IMEA at IHG Hotels & Resorts, noted that hotel occupancy rates are expected to peak over the Eid weekend, with strong performance extending into the surrounding days, especially in the Northern Emirates. 'This demand is being driven by residents and families from the GCC, as short-haul trips are becoming more attractive ahead of the summer school break. Looking ahead, UAE hotels are witnessing a 20 per cent year-on-year increase in bookings, buoyed by robust domestic travel and double-digit growth from key international markets, including the UK and neighboring Gulf countries,' said Labib. He added that occupancy during Eid remains consistent with last year's 80 per cent, at IHG Hotels and Resorts. Staycations surge amid visa hurdles Iftikhar Hamdani, area general manager of Bahi Ajman Palace and Coral Beach Resort Sharjah, confirmed full occupancy at his properties during Eid, reflecting strong demand. 'Compared to last year, we're seeing significantly higher occupancy. Many guests are booking longer stays, largely driven by expatriates unable to travel abroad due to delays in obtaining Schengen and US visas,' he said. Sherif Madkour, General Manager of Media Rotana, expects a 'remarkable performance this Eid,' with occupancy projected to exceed 95 per cent. 'There's a clear increase in both bookings and average daily rates compared to last year,' he noted. 'This is supported by attractive seasonal offers, family packages, and enhanced leisure facilities. A growing number of residents are choosing local getaways due to continued visa processing issues.' Abdulla Al Abdulla, CEO and General Manager of Central Hotels & Resorts, said properties under the group — including Palm Hotels and First Central — are performing strongly, with about 70 per cent of rooms already booked. 'We typically see a surge in bookings during the last three days before Eid, and we expect that trend to continue,' he said. 'The staycation market is showing modest year-on-year improvement.' GCC visitors drive tourism boost Mamdouh Ali, General Manager of Rose Rayhaan by Rotana, anticipates an 'exceptional tourist season' during Eid, with a projected 20 per cent increase in visitors from the Gulf region and a 10 per cent rise in domestic tourism. 'This growth is largely due to our special promotions and events coordinated by the Dubai government in collaboration with the Department of Economic Development,' he added. At Leva Hotel on Sheikh Zayed Road, occupancy is expected to reach around 90 per cent during the Eid weekend. 'Much of the demand materialises close to the holiday dates, and we're seeing a similar last-minute booking trend this year,' said Thomas Kurian, Hotel Manager. 'Our guests are primarily from the GCC, with many families seeking cost-effective holiday packages and extended weekend stays. Northern Emirates resorts continue to be preferred over city hotels, a pattern that we expect to continue through Eid Al Adha 2025.' Elif Yazoglu, General Manager of DoubleTree by Hilton Jumeirah Beach, also reports exceptionally strong demand. 'We're expecting full occupancy throughout the Eid period, with reservations building steadily in advance,' she said. 'Compared to last year, we've seen a substantial increase in both pace and volume of bookings. Many residents are locking in their plans early, and with school holidays approaching, families appear to be delaying overseas travel, contributing to the current spike.'
