Digital Innovation in Industry 4.0 Era – Rebooting UAE’s Retail

Abstract

The emergence of Digital Innovation in Industry 4.0 Era towards online retail industry has transformed the way the business is carried out. The e-commerce industry has the potential to boost economic growth and social development. Economic sectors such as finance, communication, labor and retail trade has larger impact by e-commerce. It holds promise in areas such as transport, education, infrastructure, employment and government. A combination of technology innovation and regulatory reforms has enabled e-commerce to evolve and thrive. Barriers in electronic commerce affecting buyers and sellers have declined compared to the past. Still it will travel towards zero barriers during Industry 4.0 Era. This paper explores the impact of e-commerce sector success on the economic growth of the UAE. The factors affecting e-commerce development will be expounded to determine the policy initiatives that need to be implemented in the UAE. This paper also proposes appropriate e-commerce approaches to boost development and address challenges that hinder economic growth. The rapid development of technology has incentivized most countries to leverage on opportunities of the digital economy. In UAE, the e-commerce sector is on the verge of a pivotal shift. It is becoming a reality by forming new customer experiences, reinvesting shopping trends, disrupting business models and harnessing the growth of new e-commerce players and SME’s. The study assesses the current e-commerce market dynamics in UAE by exploring the effect of e-commerce sector on UAE’s economic growth, benefits and barriers of e-commerce development and the positive contribution of the industry to economic growth. The e-commerce industry has a significant influence on the economy of a country. Therefore, the affiliation between e-commerce and economic growth is deemed important.