The UAE’s e-commerce market reached AED32.3bn ($8.8bn) in 2024 and is projected to surpass AED50.6bn ($13.8bn) by 2029, according to a report released by EZDubai, the fully dedicated e-commerce zone in Dubai South.
The UAE’s e-commerce sector continues to expand, driven by a tech-savvy, youthful population with a strong preference for online shopping, alongside advanced infrastructure, widespread internet access, and efficient delivery services.
In 2024, the top three product categories by value were:
- Apparel and footwear
- Consumer electronics
- Home care
UAE e-commerce spending
According to Euromonitor’s Digital Consumer Survey, credit and debit cards remain the most used payment method in the UAE.
However, digital wallet usage has grown significantly, from 41 per cent in 2020 to 53 per cent in 2024.
Additionally, alternative payment options such as Buy Now, Pay Later are gaining popularity, increasing both conversion rates and average basket values—highlighting consumer confidence in flexible payment solutions.
Free delivery and free returns are powerful drivers of e-commerce in the UAE, with retailers strategically balancing these offerings to enhance customer satisfaction while carefully managing logistics to minimise their impact on profitability.
Regionally, the MENA e-commerce market reached AED126.7bn ($34.5bn) in 2024, recording a 13 per cent year-on-year growth.
This surge was fuelled by the rise of mobile commerce and cross-border transactions. By 2029, the market is expected to reach AED212.2bn ($57.8bn).
Growth across the region, particularly in the UAE and Saudi Arabia, is supported by infrastructure investments, government-backed digital initiatives, and a highly connected consumer base.
Food, beverages, and home care products saw significant growth between 2019 and 2024, a trend expected to extend to other categories.
The expansion of cross-border e-commerce in MENA is also being driven by increasing demand for international products, improved logistics and payment platforms, and more efficient customs processes.
Mohsen Ahmad, CEO of Logistics District at Dubai South, said: “The e-commerce sector in the UAE is evolving rapidly, and EZDubai is proud to be at the forefront of this transformation. By offering world-class infrastructure and seamless connectivity, we are enabling global and regional players to thrive and scale.
“This growth is also being fuelled by the UAE government’s forward-thinking policies, smart regulations, and sustained investments in digital transformation, logistics, and infrastructure.
“As a result, the UAE is not only reinforcing its position as a leading e-commerce hub in the MENA region, but also emerging as a competitive global player shaping the future of digital commerce.”
The fifth edition of the “E-Commerce Report in the MENA Region 2024” was compiled in collaboration with Euromonitor International.
Source: https://www.arabianbusiness.com/industries/retail/uae-e-commerce-market-to-pass-13-8bn-by-2029
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