Mobile app downloads in the UAE grew by 23 percent annually in the first half of 2022 amid higher demand from consumers who are increasingly shifting to mobile after the coronavirus pandemic.
Finance-related apps registered a big surge in demand with downloads jumping 183 percent during the six-month period, the latest data from AppsFlyer shows.
Downloads of travel, entertainment, social and food-related apps also grew by 36 per cent, 31 per cent, 30 per cent and 15 per cent respectively, during the period.
Retail app downloads, however, dropped 9 percent as more people visited physical stores as the UAE eased pandemic-related restrictions amid a lower number of infections.
“It’s clear that as we emerge into the post-pandemic world, the accelerated momentum toward mobile that we’ve witnessed over the last two years has now created a mobile-first mindset among consumers and businesses,” Samer Saad, regional manager of Middle East, AppsFlyer, said.
“Our findings indicate a growing preference for mobile apps as the primary engagement channel. While this is ushering in a new era of convenience for consumers, it has greatly increased the competitiveness of the space.”
As demand increases for mobile apps, “businesses must now seek innovative and measurable means of enhancing user experiences and increasing engagement on their mobile apps”, he said.
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The latest data comes as consumer spending continues to rise in the UAE as the economy recovers from the pandemic.
Spending on retail items grew 16 percent, year on year, in the first six months of 2022 while spending on non-retail goods rose 31 percent in the same period, mall operator Majid Al Futtaim said in his State of the UAE Retail Economy report this month.
The UAE economy is set to post its strongest annual expansion since 2011 after it grew by 8.2 percent in the first three months of this year on higher oil prices and measures to mitigate the impact of the pandemic, according to the Central Bank of the UAE.
The Arab world’s second-largest economy, which expanded 3.8 percent in 2021, is expected to grow 5.4 percent and 4.2 percent in 2022 and 2023, respectively, according to the latest projections by the regulator.
The International Monetary Fund projects that the UAE economy will grow 4.2 percent this year while Emirates NBD forecasts growth of 5.7 percent and Abu Dhabi Commercial Bank expects a 6 percent expansion, supported by a sharp rise in the oil sector.
The AppsFlyer study shows that consumer spending on mobile apps is also growing.
Over the one-year period between March 2021 and February 2022, in-app purchases increased 9 percent with finance apps recording a threefold jump, while e-commerce applications recorded a 41 percent growth in purchases.
“While there clearly appears to be a growing preference among UAE consumers to engage with businesses via apps, the fact that 9 out of 10 UAE organizations today offer a mobile app makes this a highly competitive space. For this reason, mobile app marketers have a key role to play in driving the success of their organizations’ mobile-first strategies,” the study said.
Remarketing, the retargeting of users who have indicated some interest in the brand, in particular, has also proven to be “highly effective” with UAE consumers, with conversions from this activity growing 43 per cent in the first half of 2022 compared with the first half of 2021, according to the study.
“In today’s mobile-first world, growing app installs and increasing purchases made via mobile apps are two sides of the same coin,” Mr Saad said. “To achieve what are now business imperatives, calls for a multi-faceted approach, combining a focus on exceptional mobile user experience and highly strategic marketing efforts.”
Updated: August 24, 2022, 8:58 AM