The United Arab Emirates is poised to see its e-commerce market size more than double, soaring from Dh27.5 billion in 2023 to an impressive Dh48.8 billion by 2028. This projection comes from the latest edition of the “E-Commerce Report in the MENA Region 2023,” released by EZDubai in collaboration with Euromonitor International, a global leader in market research.
The report attributes this remarkable growth to a confluence of factors, including the increasing influence of a tech-savvy Gen Z and millennial demographic, robust government support with forward-thinking digital policies, and significant investments in digital infrastructure. Notably, apparel and footwear, consumer electronics, and media products dominated the e-commerce space in value terms last year.
In the UAE, the preference for mobile-based shopping continues to surge, with consumers prioritizing convenience and cost-effectiveness. According to the survey conducted by Euromonitor International in 2023, a vast majority of online shoppers—93.2 percent—prefer to use credit and debit cards, showcasing strong confidence in traditional payment methods. Moreover, the rise of smartphones as the preferred shopping tool underscores a shift towards mobile-centric consumer experiences, further emphasizing the growing relevance of social media in e-commerce.
The broader MENA region also experienced a robust increase in e-commerce activity in 2023, with market size expanding by 11.8 percent to reach nearly Dh106.5 billion. Since 2018, the region has seen a compound annual growth rate (CAGR) of 25 percent. By 2028, the e-commerce market in MENA is forecasted to hit Dh183.6 billion.
Emerging trends in the region include a shift towards omnichannel retail, which integrates online and offline shopping experiences, an increase in digital payments, and the rising popularity of payment apps. Additionally, the report highlights the surge in mobile commerce in the UAE and Saudi Arabia, where the market nearly quadrupled from 2018 to 2023.
Mohsen Ahmad, CEO of Logistics District at Dubai South, expressed enthusiasm about the report’s findings, stating, “We are pleased to launch the fourth e-commerce report in partnership with Euromonitor and share the latest insights on the sector with our stakeholders. The region’s e-commerce industry has been witnessing impressive growth, and is primed for further robustness in the future, due to widespread high-speed internet connectivity, and favorable policies mainly focused on development of digital payments and logistics infrastructure.”
He further emphasized the role of new regulatory frameworks like the UAE’s e-commerce law introduced in 2023, which aims to bolster the digital economy by encouraging investment, protecting consumer rights, and fostering innovation. EZDubai, launched in January 2019 by HH Sheikh Mohammed bin Rashid Al Maktoum, is strategically positioned in Dubai South’s Logistics District to capitalize on these growth trends and solidify Dubai’s status as a pivotal hub for regional e-commerce.
