The Report Covers Ecommerce Companies in UAE and the Market is Segmented Into B2B E-Commerce and B2C E-Commerce. The Market is Segmented by B2C E-Commerce (Beauty and Personal Care, Consumer Electronics, Fashion and Apparel, Food and Beverage, Furniture and Home), and B2B E-Commerce. Further, The Study Assesses the Impact of COVID-19 On the Market.

In 2023, the value of the e-commerce market in the United Arab Emirates was estimated at 7.5 billion U.S. dollars. This represented an increase from six billion U.S. dollars of market value estimated in the previous year.

The market size of the e-commerce industry in the United Arab Emirates (UAE) was expected to grow from seven billion U.S. dollars in 2020 to reach 17 billion U.S. dollars by 2025, after the adjustments for the effect of the COVID-19 pandemic on e-commerce. From 2020 to 2022, there was an expected additional six percent annual market growth due to COVID-19 in the Gulf Cooperation Council (GCC) region.

The size of the United Arab Emirates Ecommerce Market was valued at USD 11.01 Million in 2023 and is projected to reach USD 23.62 Million by 2032, with an expected CAGR of 11.52% during the forecast period. The United Arab Emirates (UAE) e-commerce market has seen amazing growth over the past years and positioned it at a key destination point within the Middle East region as a high performer in the country's digital economy. With an extremely technology-savvy population and high internet penetration, coupled with strong smartphone penetration, the UAE is an online shopping destination that welcomes regional and international e-commerce players. The shift in consumer behavior and preference toward convenience offered by most of the players in the market has led to the growth of the market. The increasing number of digital payments plays an instrumental role in making online shopping more hassle-free and secure. Among all such sectors, electronics, fashion, beauty products, and grocery items are essential components of the e-commerce sector in the UAE dominated by Amazon.ae, Noon, and Carrefour. It is a new trend wherein more and more consumers desire to shop through their mobile phones. Mobile commerce, or m-commerce, refers to a rising trend whereby more and more consumers wish to shop through their mobile phones. Strategically located as a business hub in the Middle East, and boasting a highly developed infrastructure and logistics capabilities, it enables the UAE to become an e-commerce hub for the region, welcoming international brands to expand their market reach. Recent developments include: May 2023: UAE Mastercard launched Click to Pay with payment service provider (PSP) Foloosi, who has rolled out the revolutionary payment mechanism across its entire merchant base. The cooperation makes the embedded Click to Pay solution the recommended payment method for guest checkout for Foloosi'sretailers and consumers. As part of the rollout, over 6,000 shops will provide Click to Pay to their customers., February 2023: Etisalat UAE, branded as Etisalat by e&, completed the acquisition of Service Souk DMCC "ServiceMarket. This acquisition is consistent with the Group's aim of empowering consumers, strengthening Smiles' online marketplace presence, and driving company diversification.. Key drivers for this market are: Increase in Internet Penetration and Smartphone Usage, Promotion of E-commerce by the Government Sector, including Measures to Strengthen Last-Mile Delivery and Improvise Distribution Centers. Potential restraints include: Lack of Awareness About Intellectual Property Outsourcing. Notable trends are: Food Industry to Witness Significant Growth.

This statistic presents the market size of the e-commerce industry in the United Arab Emirates (UAE) from 2014 to 2017. In 2017, the e-commerce market size in the UAE amounted to 2.3 billion U.S. dollars, compared to 1.1 billion U.S. dollars in 2014.

The UAE E-Commerce Market is set to grow at a CAGR of around 30.22% from 2025 to 2032, with its market size reaching approximately USD 712.32 billion in 2032.

The Middle East and Africa E-Commerce Market Report is Segmented by B2C E-Commerce (Beauty and Personal Care, Consumer Electronics, Fashion and Apparel, Food and Beverage, Furniture and Home, and Others), B2B E-Commerce, and Country (the United Arab Emirates, Saudi Arabia, South Africa, and Rest of Middle East and Africa). The Market Sizes and Forecasts are Provided in Terms of Value (USD) for all the Above Segments.

As of 2023, the primary category in e-commerce within the United Arab Emirates was toys, DIY, and hobbies, holding the largest market share of 29 percent. It was followed by fashion, with a market share of 27 percent.

E-commerce market in the UAE

The e-commerce market in the UAE has experienced a significant boost in recent years. It was estimated that online sales would increase at an average annual rate of 23 percent from 2018 to 2022. In 2022, the projected value of e-commerce sales in the UAE was approximately 27 billion U.S. dollars. The market size of the e-commerce industry in the UAE was estimated to increase by ten billion U.S. dollars between 2020 and 2025. Due to its high internet penetration rate and tech-savvy population, the UAE presents an appealing opportunity for e-commerce players.

Top e-commerce shopping categories

The UAE’s e-commerce market encompasses a wide range of categories catering to consumers' diverse needs and preferences. The top e-commerce shopping categories include fashion and apparel, electronics and gadgets, beauty and cosmetics, grocery and food delivery, and travel services. Between 2021 and 2022, the snack foods category witnessed the highest growth at an exceptional increase of more than 850 percent. Bird toys and accessories followed as the UAE's second-fastest-growing e-commerce category.

The Fashion eCommerce market in the UAE is predicted to reach US$1,836.7m revenue by 2025. The top online retailers in the market are namshi.com, amazon.ae and shein.com.

The UAE Q-Commerce Industry Report is Segmented by Category (food, Personal Care, Groceries Products, Household Goods, Pharmaceuticals, and Other Categories). The Market Size and Forecasts are Provided in Terms of Value (USD) for all the Above Segments.

In 2022, the forecasted value of e-commerce sales in the United Arab Emirates (UAE) was around 27 billion U.S. dollars. E-commerce sales in the UAE were estimated to grow by an average of 23 percent per year between 2018 and 2022.

 Regional e-commerce market

With high social media penetration in the Gulf Cooperation Council (GCC), the e-commerce market has witnessed rapid growth. In the UAE, the share of the population who were active on social media was higher than in Saudi Arabia. By growing the e-commerce market, this helps to boost economic growth and extends the advantages of digital payments in the country. In 2020, the UAE was forecasted to have the second largest e-commerce market in the GCC.

 E-commerce categories2 

 E-commerce in the UAE is not only limited to retail goods and services, but also extends to government services and education whose share of e-commerce volume of government services and education amounted to 38 percent from 2018 to 2019. Moreover, professional services had a volume share of nine percent in the e-commerce market in the same period.

The competition in the e-commerce logistics space in UAE is concentrated whereby major 3-4 companies hold the majority of the share in the market. The e-commerce market is highly fragmented as the majority of the market share is composed by the top 3-4 players.

The Middle East and Africa (MEA) e-commerce market is experiencing robust growth, projected to reach a market size of $135.77 billion in 2025 and maintain a Compound Annual Growth Rate (CAGR) of 14.28% from 2019 to 2029. This expansion is fueled by several factors. Increased internet and smartphone penetration across the region are making online shopping increasingly accessible to a wider consumer base. A young and rapidly growing population, particularly in key markets like the UAE and Saudi Arabia, is driving demand for diverse products and services online. Furthermore, government initiatives promoting digitalization and e-commerce infrastructure development are creating a favorable environment for businesses. The rise of mobile commerce, coupled with convenient payment options like mobile wallets, further contributes to the market's upward trajectory. Significant investment in logistics and delivery networks is addressing previous bottlenecks and enhancing customer experience. The market is segmented by both B2C and B2B activities, with B2C dominating due to high consumer adoption of online shopping. Within the B2C sector, key product categories like beauty & personal care, fashion & apparel, consumer electronics and food & beverage are witnessing considerable growth. However, challenges such as logistical complexities in certain regions, concerns about online security, and the need for greater financial inclusion remain to be addressed to unlock the market's full potential. While the provided data focuses on the period until 2029, extrapolating from the 14.28% CAGR, we can anticipate continued strong growth beyond this point. The sustained expansion in MEA's e-commerce market hinges on continued improvements in digital infrastructure, robust investment in logistics and payment gateways, and tailored marketing strategies that address the unique needs and preferences of diverse consumer segments within the region. The presence of major global players like Amazon, Alibaba, and Walmart, alongside regional players, signifies the market's attractiveness and indicates ongoing competition, leading to innovation and improved services for consumers. The market's future will likely be characterized by further segmentation, specialization, and the increased adoption of innovative technologies such as Artificial Intelligence and machine learning to enhance personalization and customer experience. Recent developments include: June 2024: Kuehne+Nagel initiated the construction of a new fulfillment and distribution center in EZDubai, a prominent e-commerce hub within Dubai South. The chosen location is adjacent to Al Maktoum International Airport and linked to Jebel Ali Port via a bonded logistics corridor., October 2023: Calibrate Commerce, a Dubai-based e-commerce expert, unveiled Calibrate Labs, an incubator tailored for homegrown e-commerce enterprises in MENA. The initiative targets start-ups aiming to develop their own ideas or scale their existing ventures.. Key drivers for this market are: Increase in the Adoption of Latest Technology, Increasing Consumer Interest towards Convenient Shopping solutions. Potential restraints include: Increase in the Adoption of Latest Technology, Increasing Consumer Interest towards Convenient Shopping solutions. Notable trends are: The Adoption of Latest Technology is Increasing.

The second largest e-commerce industry in the in the Gulf Cooperation Council (GCC) region was the United Arab Emirates (UAE) with an expected market size of 6.7 billion U.S. dollars in 2020. The market size of e-commerce in the GCC region was expected to grow to reach 21.6 billion U.S. dollars in that year.

In UAE Pharma E-Commerce Market, This market integrates advanced digital technologies with pharmaceutical distribution, offering consumers a convenient and efficient way to purchase medications and health products.

The U.A.E. e-commerce automotive aftermarket generated revenue of USD 503.1 million in 2023, which is expected to witness a CAGR of 16.3% during 2024–2030.

The Furniture & Homeware eCommerce market in the UAE is predicted to reach US$214.1m revenue by 2025. The top online retailers in the market are amazon.ae, homecentre.com and homeboxstores.com.

The Apparel eCommerce market in the UAE is predicted to reach US$1,045.2m revenue by 2025. The top online retailers in the market are namshi.com, shein.com and brandsforless.com.

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Business To Business (B2B) E-Commerce Market Size 2024-2028

The business to business (b2b) e-commerce market size is forecast to increase by USD 11158.3 billion, at a CAGR of 15.2% between 2023 and 2028.

The Business-to-Business (B2B) E-commerce market is experiencing significant growth, particularly in developing countries where adoption is on the rise. This trend is driven by the increasing digitization of business processes and the convenience and efficiency gains offered by online platforms. Another key driver is the strategic collaboration among companies, who are recognizing the benefits of partnerships in expanding their reach and enhancing their offerings. However, this market is not without challenges. Data and cybersecurity concerns are becoming increasingly prevalent, as companies grapple with the complexities of securing sensitive business information in the digital realm.
These challenges necessitate robust security measures and strategic planning to mitigate risks and maintain trust with business partners. Companies seeking to capitalize on the opportunities presented by the B2B E-commerce market must navigate these challenges effectively, while also staying abreast of the latest trends and collaborative opportunities.

What will be the Size of the Business To Business (B2B) E-Commerce Market during the forecast period?

Explore in-depth regional segment analysis with market size data - historical 2018-2022 and forecasts 2024-2028 - in the full report.
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In the dynamic and ever-evolving business-to-business (B2B) e-commerce market, various entities interplay to facilitate seamless transactions and optimize operations. Channel management and supplier relationship management are crucial for effective procurement processes, ensuring a steady supply chain. Optimization of inventory management systems and demand planning enable businesses to maintain an adequate stock level, reducing the risk of stockouts or overstocking. Business intelligence and data analytics provide valuable insights, enabling sales forecasting and pricing strategies. E-commerce platforms serve as the backbone, integrating order management systems, payment terms, and invoice processing. Technical support and contract negotiation are essential for maintaining strong business relationships and resolving any disputes.

Fraud prevention measures, such as data encryption and compliance regulations, protect businesses from potential threats. Marketing automation and discounting strategies help attract and retain customers, while branding strategies and reputation management ensure a strong market presence. International trade and import/export procedures necessitate a deep understanding of various tax regulations and customs regulations. Sales automation and affiliate marketing expand reach and streamline operations, while predictive analytics and return management optimize customer service and account receivables. Warehouse management, shipping logistics, and negotiation tactics ensure efficient order fulfillment and risk management. Quality control and product returns maintain customer satisfaction, while company onboarding and supply chain finance facilitate smooth supplier relationships.

Email marketing, digital marketing, content marketing, and social media marketing are essential for lead generation and customer engagement. Legal frameworks and contract management ensure a solid foundation for business operations. In this continuously unfolding market, entities such as payment gateways, lead generation, and compliance regulations are integral components, shaping the B2B e-commerce landscape.

How is this Business To Business (B2B) E-Commerce Industry segmented?

The business to business (b2b) e-commerce industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

Application

  Home and kitchen
  Beauty and personal care
  Consumer electronics
  Clothing and others


Business Segment

  Small and medium enterprises
  Large enterprises


Type

  Buyer-oriented
  Seller-oriented
  Intermediary-oriented


Geography

  North America

    US
    Canada


  Europe

    France
    Germany
    Italy
    UK


  Middle East and Africa

    Egypt
    KSA
    Oman
    UAE


  APAC

    China
    India
    Japan


  South America

    Argentina
    Brazil


  Rest of World (ROW)

By Application Insights

The home and kitchen segment is estimated to witness significant growth during the forecast period.

The Business-to-Business (B2B) e-commerce market in the US has experienced significant growth, driven by various factors. Security protocols and order management systems ensure seamless transactions, while technical support facilitates smooth operations.

The forecasted market value for e-commerce in the United Arab Emirates in 2018 was about ten billion U.S. dollars. The projection expected a quadrupled value in comparison to 2014.

  development so far   

The United Arab Emirates is the leading e-commerce market in the Gulf Cooperation Council, it outperformed Saudi Arabia though its only one third of the Kingdoms population size. A main accelerator of the e-commerce market is the mobile internet segment. Consumers in the United Arab Emirates use their smartphones in various ways as an online shopping tool. According to a survey, 44 percent of UAE respondents used their smart phone to pay for their online shopping. Around a third of UAE respondents used their smartphone to review products they planned to purchase online. And more than 40 percent have used their smartphones to compare competitor prices during their online shopping.

  outlook   

The United Arab Emirates were until 2015 the leading growth market for e-commerce in the Gulf Cooperation Council region. The Growth is projected to fall from 44 percent to 38 percent in 2020 .