In real terms the UAE Internet market remains a small market, but, as far as penetration levels go, the market is one of the prominent ones, with close to a 35% penetration rate. As further net savvy expatriates move to the country and as the locals embrace the technology that the Internet can provide, this rate should continue to grow to a high level.
In real terms, the UAE lacks behind two other markets in the Middle East, including Iran and Saudi,
but this is primarily due to both having larger population bases. Other areas are enjoying higher growth rates, primarily because they have not been as quick to embrace the technology or did not have the infrastructural capability to offer quality, affordable internet to its population.
The UAE is way ahead on its internet strategy, with e-government spearheading the way. Much can be accomplished online, legislatively, for example submitting applications for visas in Dubai. There are few 'dot com' type companies starting to spring up, which have learnt from the mistakes that the West went through in the late 1990s. However, with penetration as it is, it would seem difficult to target only net users, especially if your target market is split by language or nationality. This should change in the coming years, but services such as
internet banking and transactional focused sites are beginning to provide good quality, despite the problems of payment completion.
With telecoms soon to offer another provider, it seems as if the UAE internet market is in for a minor boom. You might like to say that it is 10 years behind the west, but some elements remain current.
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