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 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.

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 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.

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 Personal Care eCommerce market in the UAE is predicted to reach US$126.2m revenue by 2025. The top online retailers in the market are carrefouruae.com, amazon.ae and namshi.com.

Discover the latest eCommerce statistics in United Arab Emirates for 2025, including store count by category and platform, estimated sales amount by platform and category, products sold by platform and category, and total app spend by platform and category. Gain valuable insights into the retail landscape in United Arab Emirates, uncovering the distribution of stores across categories and platforms.

In United Arab Emirates, the estimated sales amount across various store categories provides key insights into the market's dynamics. Apparel, as a prominent category, generates significant sales, totaling $48.81B, which is 48.14% of the region's total sales in this sector. Beauty & Fitness follows with robust sales figures, achieving $2.18B in sales and comprising 2.15% of the region's total. Computers contributes a considerable amount to the regional market, with sales of $79.31M, accounting for 0.08% of the total sales in United Arab Emirates. This breakdown highlights the varying economic impacts of different categories within the region, showcasing the diversity and strengths of each sector.

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.

This chart illustrates the estimated sales amounts generated by stores on various platforms within United Arab Emirates. Custom Cart shows a significant lead, with total sales amounting to $51.39B, which constitutes 50.68% of the region's total sales on platforms. Salesforce Commerce Cloud reports sales of $48.12B, accounting for 47.46% of the total platform sales in United Arab Emirates. Magento also holds a notable share, with its sales reaching $1.22B, representing 1.20% of the overall sales amount. This data provides a comprehensive view of the market dynamics in United Arab Emirates, highlighting which platforms are driving the most sales.

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 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 .

This chart provides a detailed overview of the number of United Arab Emirates online retailers by Monthly Sales. Most United Arab Emirates stores' Monthly Sales are Less than $100.00, there are 11.93K stores, which is 98.20% of total. In second place, 131 stores' Monthly Sales are $100.00K to $1.00M, which is 1.08% of total. Meanwhile, 54 stores' Monthly Sales are $10.00M to $100.00M, which is 0.44% of total. This breakdown reveals insights into United Arab Emirates stores distribution, providing a comprehensive picture of the performance and efficient of online retailer.

The pie chart showcases the distribution of app/software spending by store category in United Arab Emirates, providing insights into how eCommerce stores allocate their resources on the app or software they utilize. Among the store categories, Apparel exhibits the highest spending, with a total expenditure of $4.16M units representing 30.29% of the overall spending. Following closely behind is Beauty & Fitness with a spend of $2.07M units, comprising 15.10% of the total. Home & Garden also contributes significantly with a spend of $1.51M units, accounting for 10.97% of the overall app/software spending. This data sheds light on the investment patterns of eCommerce stores within each category, reflecting their priorities and resource allocation towards app or software solutions.

This chart offers an insightful look at the store count by category in United Arab Emirates. Leading the way is Apparel, with 6.52K stores, which is 17.70% of the total stores in the region. Next is Home & Garden, contributing 5.37K stores, or 14.57% of the region's total. Beauty & Fitness also has a notable presence, with 4.25K stores, making up 11.52% of the store count in United Arab Emirates. This breakdown provides a clear picture of the diverse retail landscape in United Arab Emirates, showcasing the variety and scale of stores across different categories.

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 Electronics eCommerce market in the UAE is predicted to reach US$2,030.9m revenue by 2025. The top online retailers in the market are amazon.ae, apple.com and carrefouruae.com.

The Toys eCommerce market in the UAE is predicted to reach US$46.6m revenue by 2025. The top online retailers in the market are amazon.ae, mumzworld.com and lego.me.

Since 2020, the retail value of e-commerce in the United Arab Emirates has continued to increase by at least 500 million U.S. dollars each year. The biggest increase was recorded in 2023 when it jumped by 577 million USD over the previous year. E-commerce figures In the past decade, the value of e-commerce sales in the UAE has witnessed consistent, near-linear growth. When looking at the top ten fastest-growing e-commerce categories in the UAE , one can see the wide range of retail products that have benefitted from online sales, especially food and pet products. However, the leading e-commerce segments are still largely centered around recreational items, fashion, and electronics. The UAE retail e-commerce space Retail e-commerce has been a growing industry in the UAE, with many brands and retailers now bolstering their online presence. The market share of major online retailers in the country hosts a variety of local brands such as Noon, and international giants like Amazon. In March 2017, Amazon acquired one of the largest Middle Eastern e-commerce platform Souq.com, and rebranded it under its brand name. The Souq.com deal gives Amazon a growing and competitive space in the UAE retail e-commerce.