In an increasingly competitive retail landscape, what really sets brands apart is their ability to deliver a smooth, hassle-free customer experience. The retailers that stand out are those offering personalized product recommendations, easy-to-navigate shopping journeys, and simple online processes for buying, exchanging, and returning items.

This shift is reflected across the Middle East’s retail sector, where rapid digital transformation is being driven by artificial intelligence, cloud computing, and the Internet of Things. The region’s AI-driven predictive retail platform market is valued at $1.2 billion.

Adoption rates are accelerating: 76% of Middle Eastern retailers have already invested in AI, and 44% plan to invest further over the next two years. Key areas of focus include demand forecasting, personalized marketing, and procurement optimization.

FRICTIONLESS RETAIL

Mohammad A. Baker, Deputy Chairman and CEO of GMG, explores what frictionless retail means for his organization, as they strive to enhance the customer experience and ensure a seamless journey from start to finish. 

Baker notes that in 2024, GMG expanded its online presence with the launch of nike.com and the Nike App in Kuwait and Qatar, followed by a partnership with Amazon in the MENA region, which they announced in 2025.

“This allowed us to accelerate our omnichannel strategy by harnessing Amazon’s best practices in AI, logistics and customer service technology, supporting our vision to combine our strong physical presence with seamless digital experiences.”

He explains that, with support from agentic commerce and customer support, they can personalize the customer experience by offering suggestions and tailoring the journey to individual preferences.

Prashant Talwar, Director of New Verticals at Deliveroo, says a frictionless food, grocery, and retail experience is about making the customer journey easy from the moment someone opens the app, to discovering what they want, checking out, receiving their order, and accessing support if needed. “We focus on removing time, effort and uncertainty at every step.”

“A key pillar of this is bringing exciting and in-demand brands directly to people’s doors, removing the need to search extensively, queue in person, or visit multiple stores to find what they’re looking for,” Talwar explains. “This is especially important during viral product moments, when demand spikes suddenly and availability becomes competitive,” he adds, pointing to examples such as Labubu, Lazy Cake Ice Cream, and FIX Chocolate.

He notes that delivering this experience requires making discovery and search intuitive, using technology to surface the most relevant options and value offers; enabling frictionless ordering through clear in-app merchandising and streamlined checkout; providing reliable, fast delivery with real-time tracking and high fulfilment rates; offering in-app communication with riders; and ensuring customer care is easy to access, with quick and simple resolution if something goes wrong.

Faisal Toukan, Co-founder and CEO of Ziina, says payments sit at the center of frictionless retail, orchestrating the experience between customers and businesses at the moment intent becomes action. “When payments introduce friction, the entire retail journey slows down and confidence erodes. When they work well, their reliability builds trust.”

Toukan notes that this expectation is reflected in consumer behavior, citing Visa’s 2025 Global Digital Shopping Index, which found that 77% of UAE shoppers say frictionless payment and checkout experiences influence where they choose to shop.

“Customers expect to pay instantly in ways that feel natural and trusted, whether through a tap, a scan or a link. Businesses need immediate confirmation, clear visibility into funds, and payment flows that integrate seamlessly into daily operations.”

THE ROLE OF PHYSICAL STORES

Yasser Taher, CEO of Maghrabi, believes frictionless retail means putting the client at the center of everything they create.

“It is all about delivering an experience that, regardless of the touchpoint, is tailor-made around our clientele—from discovery and consultation to eye tests and after-sales services. Importantly, removing friction is not only about technology; it is about building bridges that create clear, easy paths for our consumers, while ensuring they feel fully supported and empowered.”

He adds that when executed, frictionless retail increases conversion, strengthens loyalty, and improves operational efficiency through automation, smarter fulfilment, and personalized experiences. “It is not just a technology upgrade – it is a customer-centric strategy that turns convenience into a competitive advantage.”

However, Taher notes that Maghrabi’s physical stores remain their most complete experience, though they are evolving into increasingly experience-led centers, connecting more closely with their e-commerce’s endless aisle and omni-channel-enabled services.

“Across our stores in the region, we combine technology—such as an advanced suite of eye wellness screenings—with the irreplaceable warmth of human connection,” he states, adding, “In a world with no space for friction, physical retail is evolving into the sensorial, service-oriented, and tailored heart of the brands.”

“Human interaction remains indispensable in everything we do, while technology and automation enable higher levels of efficiency, speed, and accuracy across our service,” Taher adds, explaining that their store associates are trained not only to assist, but to advise, educate, and build long-term relationships. “Technology supports the process, but it is people who make the overall experience meaningful, engaging, and—ultimately—unparalleled.”

Baker notes that physical stores are evolving from transactional spaces into experience-led, digitally enabled touchpoints within a frictionless retail ecosystem. “As we operate in an increasingly digital-first environment, consumers expect the same speed, convenience and personalisation in-store as they do online.”

To remain relevant, Baker says brick-and-mortar stores must remove friction rather than add it. “This means seamless checkouts, integrated mobile apps, and intelligent use of data to personalise the in-store journey.”

He explains that the growing openness to AI-driven shopping reflects this shift: 21% of UAE consumers used AI in shopping for the first time in the past year, and 62% are open to using it in the future. As a result, we will see smarter stores that leverage AI for personalised assistance, demand prediction, and real-time insights into consumer behaviour.

“Ultimately, the role of the physical store is no longer just about selling products. It becomes a connected experience hub—one that blends digital intelligence with human interaction, strengthens brand trust, and complements online channels rather than competing with them.”

Baker also adds that as retail becomes more automated, human interaction remains essential wherever trust, judgment, and emotional connection matter most. “While technology can drive speed, efficiency and personalisation at scale, it cannot replace the empathy, intuition and relationship-building that sit at the heart of strong customer experiences. Human interaction is particularly critical in brand representation, in-store engagement, and customer support—moments where consumers seek reassurance, advice, or a deeper connection with the brand,” he says. 

“These personal touchpoints help transform one-off transactions into long-term relationships, strengthening loyalty and brand affinity over time.”

EMERGING TECH

Looking ahead, Toukan points to emerging technologies that are reshaping the retail landscape.

“Digital wallets and real-time payments have already reshaped how people pay, setting baseline expectations for speed and convenience,” he states. 

“The next meaningful shift will come from Open Finance, which allows customers to initiate payments directly from their bank accounts within trusted applications, reducing steps at checkout and increasing transparency around how money moves.”

He explains that Open Finance enables direct account-to-account transactions, reducing reliance on card networks, accelerating settlement, and giving merchants greater certainty at the point of sale. It also embeds payments, refunds, and financing directly into the retail journey, simplifying checkout.

“As Open Finance matures, retailers can design flows that minimize manual input, enable instant refunds and payouts and support more personalized experiences based on customer-consented data,” he notes, adding that over time it could remove persistent sources of friction, including checkout abandonment and delayed settlement, while reshaping how trust and loyalty are built in everyday commerce.

Talwar says AI continues to have the greatest impact on how the company operates.

“We already use AI extensively to drive operational efficiency, from our Frank dispatch system, which optimises rider-order matching, to predictive models that forecast demand, improve staffing decisions and reduce waste. AI also plays a growing role on the customer side, powering personalised recommendations, menu optimisation (and design) and smarter discovery.”

Baker notes that over the next three to five years, technologies that simplify discovery, payment, and fulfilment will have the greatest impact on reducing friction in retail.

“In the UAE—which leads in the advanced use of cybersecurity, cloud, generative AI and edge computing—the focus has moved from adoption to intelligent integration. Across the region, AI, mobile connectivity and associated devices are expected to account for nearly 45% of digital transformation spending,” he says.

He adds that artificial intelligence is the most transformative enabler, driving personalisation, smarter inventory management, and real-time customer support across channels. “Integrated payments and Smart Pay solutions will further reduce friction by enabling faster, more secure and seamless transactions, both online and in-store. Ultimately, the greatest impact will come from how effectively these technologies are connected to deliver simple, intuitive retail experiences.”