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Digital transformation specialist HOD doubles business in 2022 due to high E-Commerce demand in the UAE

e-commerce demand in UAE

Around 85 percent of the 665,246 registered businesses in the UAE still conduct their business manually – through physical channels and must be online to survive. Companies like HOD are working tirelessly to make businesses future-ready through digital transformation….

Date: Dubai, December 06, 2022


  1. The total number of registered active businesses in the UAE increased by 1.9 percent to 665,246 in July 2022 compared to 652,885 licenses issued in December 2019;
  2. HOD – Digital Partner for Growth – grew by 100 percent in 2022 compared to 2021. Its workforce doubled to 50 globally, up from 25 in 2021;
  3. HOD has launched 7 e-commerce platforms and is working on three more, having signed a relationship with 60 e-commerce partners that make up the e-commerce ecosystem;
  4. The gross value of B2C e-commerce goods in the country will grow from USD 22.5 billion in 2021 to USD 51.4 billion by 2026.

Dubai-based digital transformation specialist House of Digital (HOD) has announced a doubling of its business activities in 2022 due to high demand for digitization and e-commerce in the UAE.

The demand for digitization and e-commerce is expected to grow much faster in the coming days as more than 85 percent of the 652,885 active UAE businesses in the UAE do not focus on selling products and services online or through e-commerce platforms.

The total number of registered active businesses in the UAE increased by 1.9 percent to 665,246 in July 2022 compared to 652,885 licenses issued in December 2019, according to the UAE National Economic Registry (NER). Data from the registry showed that more than 81 percent of licensed businesses are located in Dubai, Abu Dhabi and Sharjah. Dubai accounts for approximately 46 percent of the country’s total licensed businesses, Abu Dhabi 23 percent and Sharjah 14 percent.

The largest percentage of licenses issued was for limited liability companies, accounting for 40 percent, followed by individual companies with 33 percent. About 80-85 percent of the 665,246 registered active businesses fall under the Micro, Small and Medium Enterprises (MSME) category, which need digital transformation services to do business online.

HOD – Digital Partner for Growth – is changing the game for businesses in the region. It transforms brick-and-mortar businesses into digitally competent businesses through digital transformation and marketing transformation across the digital landscape.

According to the 2022 B2C Ecommerce Survey, the gross value of B2C e-commerce goods in the UAE is expected to grow by 25.52 percent annually to reach $28.2 billion in 2022.

“The medium to long-term growth story of B2C e-commerce in the UAE promises to be attractive. B2C e-commerce is expected to grow steadily during the forecast period, registering a compound annual growth rate (CAGR) of 16.16 percent during 2022-2026. The gross value of B2C e-commerce goods in the country will grow from $22.5 billion in 2021 to $51.4 billion by 2026,” the report said.

“The growing internet penetration rate is largely driving the expansion of the e-commerce industry in the UAE. This along with rising incomes, large number of smart devices, growing presence of global players and better supply chain solutions have fueled the growth of the market in the last two years.

“While the country has historically been a cash-dominated society, the global outbreak of the pandemic has forced consumers to quickly adopt digital payment methods.”

Growing trust in digital payment services has fueled the rise of cross-border e-commerce in the country, the company said. In particular, consumers prefer a wide range of products at lower prices from cross-border e-commerce providers. The top countries from which UAE consumers shop include the United States, China and India.

“The growing trend of cross-border e-commerce is expected to further support the growth of the country’s overall B2C e-commerce industry over the next three to four years,” the report said.

E-commerce in the UAE is fast catching up with global powers such as the United States and China, with several stores expanding their online services ahead of the global pandemic in 2021.

Due to high demand for digitization and e-commerce, the two-year-old HOD has doubled its business by hiring 25 professionals worldwide this year, on top of the existing 25 professionals it has hired in 2021.

Praveen Kumar, Founder and CEO of HOD said, “We have successfully launched 7 e-commerce platforms, including several start-up online marketplaces in the retail sectors, while we are working on three new e-commerce platforms that will be ready for launch in the first quarter of 2023 ”

“At HOD, we work tirelessly with our clients to create digital e-commerce channels that enable them to grow their businesses. With approximately 85 percent of businesses in the UAE still running on brick-and-mortar channels, we see huge growth potential for the digital transformation of businesses.”

HOD has signed partnership agreements with 60 major technology and logistics vendors who work with HOD to provide businesses with end-to-end digital transformation solutions to ensure a seamless user and consumer experience.Karthikeyan, Co-Founder and Chief Technology Officer of HOD, says, “Our leadership team represents a brand new blend of business intelligence and technical expertise. Each member is dedicated to catalyzing change, delivering results and partnering with you to solve your complex business challenges and help transform your business through digital.

Editor’s Notes

About HOD

House of Digital (HOD) – Digital Partner for Growth – is a digital transformation and e-commerce specialist that helps businesses move from brick-and-mortar to online and grow in the digital space, offering end-to-end solutions.

As the world embraces the fourth industrial revolution, businesses are under pressure to get online or lose out. Founded in November 2020, through its partnership with more than 60 technology and logistics partners, HOD helps businesses go online and grow through an e-commerce platform.

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