UAE e-commerce market noting significant progress, to reach Dh48.8 billion by 2028

The total size of the e-commerce market in the UAE reached a sizeable Dh27.5 billion last year, with the leading sectors by value including clothing and footwear, consumer electronics and media products. Experts project the size of the market to exceed Dh48.8 billion by 2028.

EZDubai, a dedicated e-commerce zone in Dubai South, and Euromonitor International, a global provider of business intelligence, market research and consumer insights, recently engaged in a partnership to prepare an elaborate report carrying the optimistic figures.

Factors contributing to better UAE e-commerce market

EZDubai noted that the UAE is experiencing tremendous progress in e-commerce adoption, facilitated by a tech-savvy youth demographic, substantial investments in digital infrastructure and strong government support in terms of legislation and regulations.

The report highlights that Emirati consumers prefer mobile shopping, valuing cost savings and convenience. Credit and debit cards remain the most common payment methods for online purchases, indicating strong confidence in traditional banking services.

Several other factors have contributed, including the rise of e-commerce platforms that provide customised solutions to consumers, investments in technology such as AI and blockchain and the expansion of cross-border trade.

Brief insight into regional e-commerce market

Besides the UAE, the e-commerce sector in the broader Mena region also maintained steady progress in 2023, marking an annual growth rate of 11.8% to reach about Dh106.5 billion. The report projects the market in the region to reach Dh183.6 billion by 2028.

The chief executive of Dubai South – Logistics District, attributed the progress seen in the region to several factors, including the sizeable availability of internet services and favourable policies that help develop digital payment infrastructure and logistics services.