Business | Technology
Firms reluctant to do business online
The internet is gaining popularity, but some Dubai companies are still reluctant to do business online, highlighting the need for web providers to improve the security and quality of their services.
- By Cleofe Maceda, Staff Reporter
- Published: 00:41 May 14, 2008
Dubai: The internet is gaining popularity, but some Dubai companies are still reluctant to do business online, highlighting the need for web providers to improve the security and quality of their services.
The Dubai Chamber of Commerce and Industry on Tuesday issued the findings of its February study on Dubai's e-commerce market, valued at $1.16 billion in the UAE as of 2007.
The study, which covered 332 companies, found that a large proportion of firms (43 per cent) are not into the e-commerce trend. For those who do use internet, they only do so to gain information and place or take orders. But they prefer not to close deals online.
The study found that among e-traders, 64 per cent or 115 of them receive orders online, while 52 per cent place orders via the internet. However, only 30 per cent make or receive electronic payments.
Almost a quarter of the traders admitted to having faced legal and security problems, as well as poor service, which disrupts the flow of business.
Some electronic traders (one-fifth) also cited regulations in Dubai as a major problem, while 12 per cent claimed that problems with the specification and quality of products and slow processing of electronic orders cause challenges and barriers to e-commerce.
Based on its findings, Dubai Chamber recommended that electronic trade practices in the UAE should be upgraded to international level by forging global partnerships with big providers.
"Internet providers need to invest more on the quality of services provided and security issues in order to make online transactions efficient and safe," the Chamber said.
"Validity of online contracts and authentications need to be regulated and recognised to facilitate business deals. Quality of products and services need to be monitored and controlled," the Dubai Chamber added.
Despite the issues, about two thirds (67 per cent) of e-commerce traders in Dubai are "extremely optimistic" and 31 per cent are "somewhat optimistic" about the future of doing business electronically.
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