UAE E-Commerce Market Size (2024 - 2029)

UAE Ecommerce Market Analysis

The UAE E-Commerce Market size is estimated at USD 11.01 billion in 2024, and is expected to reach USD 18.99 billion by 2029, growing at a CAGR of 11.52% during the forecast period (2024-2029).

In recent years, the e-commerce market in the United Arab Emirates has grown significantly, propelled by several factors, including high internet penetration, a youthful, tech-savvy population, and a solid infrastructure. Over 96% of the population in the United Arab Emirates has access to the internet, making it one of the countries with the greatest internet penetration rates internationally.

• A World Bank report from the year before stated that 9.82 million United Arab Emirates residents made online purchases, with a predicted growth to 11.11 million by 2025.
• The United Arab Emirates government has put in place several efforts to encourage and assist the growth of e-commerce in the nation. For instance, the Dubai Free Zones Council introduced the "Digital Silk Road" program to facilitate international e-commerce and strengthen the emirate's status as a hub for the industry. In addition, the government passed laws and regulations to safeguard e-commerce platforms, advance safe online transactions, and safeguard consumer rights. These actions have increased consumer trust in online shopping, fueling the expansion of the e-commerce industry.
• The United Arab Emirates market is gaining popularity for cross-border e-commerce, with customers routinely purchasing from foreign online merchants. Due to their affordable prices, wide assortment of products, and appealing shipping choices, Chinese e-commerce sites like AliExpress and JD.com have become increasingly popular among United Arab Emirates consumers. These platforms offer products in many categories, such as electronics, clothing, and home items.
• Additionally, the United Arab Emirates government has actively pursued alliances with top global companies and e-commerce behemoths, accelerating the development of online consumer electronics platforms. These partnerships provide well-known companies worldwide to the United Arab Emirates market, providing customers with various electronic products, accessories, and advanced technologies. For instance, the availability of well-known consumer electronics brands on online platforms has been boosted by strategic alliances between governmental organizations and businesses like Amazon.
• However, cybercrime incidents reduce customer confidence and trust in e-commerce platforms, reducing their willingness to shop online and impeding the market's expansion. Consumers are worried about the security of their financial and personal information and the potential for fraud or duplicitous activities. According to a YouGov survey performed in the United Arab Emirates, 65% of respondents were worried about the security of their personal information when making online transactions.

UAE Ecommerce Industry Segmentation

Conducting an e-commerce business means fostering relationships and selling information, services, and goods over computer communication networks. E-commerce usually refers to trading goods and services over the Internet, which means broader economic activity. E-commerce consists of B2B and B2C and internal organizational transactions that support these activities.

The UAE e-commerce market is defined based on the revenues generated from the sales of various end-user applications, such as food, beverage, consumer electronics, fashion and appraisal, beauty and personal care, furniture, home, and other end users. The analysis is based on the market insights captured through secondary and primary research. The market also covers the major factors impacting the market's growth in terms of drivers and restraints. The scope of the study has been segmented based on the application (food (fruits and vegetables, fish, poultry and meat, condiments (including oil, sauces, and spices), confectionery items, and other items), beverages (hot drinks, soft drinks, and others), consumer electronics, fashion and apparel, beauty and personal care, furniture, and home, and other applications (toys, DIY, media, etc.)) across the United Arab Emirates.

The UAE E-commerce market is segmented by application (food (fruits & vegetables, fish, poultry & meat, condiments, confectionery items), by beverages (hot drinks, soft drinks & other beverages), by consumer electronics, fashion & apparel, beauty & personal care, furniture & home). The report offers market forecasts and size in value (USD) for all the above segments.