Al Shaya - Brands and Markets

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UAE: Demographics Analysis

The total population of UAE is 9,770,529. The total e-commerce revenue in UAE is $16 billion in 2019 and 76% of Millennials shop online in the UAE compared to just 62% of the total population who shop online.

Demographics Analysis - United Arab Emirates

Gender Proportion

Proportion of Millennials and Gen Z

  • Millennials in UAE are 4,602,904 or 46.54% of the total population.
  • Gen Z make up 2,071,319 or 20.94% of the total population.

E-Commerce Spend

  • The e-commerce sales in UAE stands at $16 billion in 2019.
  • 76% of Millennials in UAE shop online while only 62% of the total population shop online.
  • The proportion of the country's e-commerce spend that originates from Millennials and Gen Z is 51.9% while 48.1% originates from the older population.

Available Projections

  • The UAE e-commerce market is projected to grow annually by 23%, reaching $27 billion in 2022.

Research Strategy

Millennials are people born between 1980 and 1994 and are between the ages of 25 and 39. Generation Z are those born between 1995 and 2015 and are between ages 4 and 24.

Calculations

Number and percentage of Millennials and Gen Z

To determine the number of Millennials in the United Arab Emirates we added the number of people aged between 25 and 39 in the country:
1,433,590 (25-29) + 1,795,746 (30-34) + 1,373,568 (35-39) = 4,602,904.

Percentage of Millennials in the United Arab Emirates = 14.49% (25-29) + 18.16% (30-34) + 13.89% (35-39) = 46.54%.
To determine the number of Generation Z's in the United Arab Emirates we added the number of people aged between 5 and 25 in the country:
512,575 (5-9) + 453,459 (10-14) + 389,532 (15-19) + 715,753 (20-24) = 2,071,319.
Percentage of Generation Z's in the United Arab Emirates = 5.18% (5-9) + 4.58% (10-14) + 3.94% (15-19) + 7.24% (20-24) = 20.94%.

Proportion of E-commerce Spend

Population of Millennials and Generation Z in UAE = 4,602,904 + 2,071,319 = 6,674,223.

Since 76% of Millennials in UAE shop online and Gen Z also has similar e-commerce shopping behavior, we assume that 76% of Gen Z in UAE also shop online.

Therefore, population of Millennials and Generation Z in UAE who shop online = 76% * 6,674,223 = 5,072,409.

Percentage of population of Millennials and Generation Z in UAE who shop online = 5,072,409 / 9,770,529 (total population) = 51.9%.

We assume that people of all ages spend about the same amount on e-commerce shopping. Therefore, the proportion of the country's e-commerce spend that originates from Millennials and Gen Z = 51.9%.
And the proportion of the country's e-commerce spend that originates from the older population = 100% - 51.9% =48.1%.



Sources
Sources