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E-business in UAE Challenges and Opportunities - Research Paper Example

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E-business in UAE; Challenges and Opportunities The United Arab Emirates is experiencing a progressive growth in its e-business sector. Currently, Dubai has established itself as an e-commerce hub in the Middle East. It is estimated that sales through the country’s e-commerce have grown from $2 billion in 2009 to $ 3 billion in 2010…
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E-business in UAE Challenges and Opportunities
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Download file to see previous pages This score measures the availability of online services and products in the country’s e-market. In addition, the score of effectiveness measures the level of transaction process that can be completed through the internet. An effective system will enable consumers complete the whole transaction process through the internet. This paper will therefore access the UAE e-commerce through its growth, opportunities, barriers, and the effectiveness of UAE cyber laws. Although UAE’s e-commerce has experienced considerable growth, there have been barriers of effective trading and expansions. These barriers can broadly be categorized as technical, societal, legal & ethical, organizational, cultural or perceptual barriers (Bade 106). Each of these barriers has an effect on the UAE e-commerce. UAE is an Islamic country that has strong value for religion and societal laws. The fear of exposure to western culture is the main cause of restriction on internet usage among the UAE citizens. This has greatly affected the growth of e-commerce since it depends on the internet. Organizational barriers relate to the ability of employees to handle e-commerce through the internet. The UAE culture and value of Islamic religion, makes UAE employees to develop a negative attitude towards exposure to the internet. Internet abuse among employees is also a factor that has restricted growth of e-commerce in UAE. Technical barriers have also contributed enormously to the slow growth of e-commerce in UAE. Although major towns have excellent infrastructures such as high bandwidth and secure high-speed internet, other areas lack such infrastructures. This has halted expansion of e-commerce beyond major cities such as Dubai. Similarly, the UAE has no practical legal regulations that ensure web users the security of sensitive information. This has also contributed to the slow growth of e-commerce in UAE. Despite the availability of constraints and barriers that prevent effective trade, the UAE has many unutilized potentials that can be exploited through effective application of e-commerce. Application of e-business can greatly influence how traders and customers interact with each other through the online services (Reilly 78). The real estate sector can be a major business potential for an investor of e-business. Due to the growing number of investments, the real estate industry is growing constantly. However, there is lack of connection between property developers and buyers or tenants. The e-business can greatly improve the mode of doing business in the real estate sector. E-business will enable tenants or buyers to make payments or purchase products more easily. Other than the real estate sector, the travel industry has many unexploited opportunities that can be exploited through e-commerce. Automated payment systems and booking of tours and transportation is a significant opportunity for e-commerce. The tourism sector will become a major beneficiary of e-commerce through automated travel packages and bookings. Due to the increasing popularity of Dubai as a tourist destination, the transport sector is a major opportunity for e-business in UAE. The favourable internal and external business environment in UAE has facilitated availability of e-business opportunities. Availability of supportive infrastructures is the main factor that has contributed to the ...Download file to see next pages Read More
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