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 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.

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 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.

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 .

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.

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.

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 United Arab Emirates (UAE) e-commerce market is experiencing robust growth, projected to reach a market size of $11.01 billion in 2025, exhibiting a Compound Annual Growth Rate (CAGR) of 11.52% from 2019 to 2033. This expansion is fueled by several key drivers. The UAE's young and tech-savvy population, coupled with high smartphone penetration and readily available high-speed internet access, creates a fertile ground for online retail. Government initiatives promoting digitalization and a business-friendly environment further stimulate growth. A burgeoning logistics infrastructure, supporting express, standard, and same-day delivery options, enhances consumer experience and facilitates rapid order fulfillment. The prevalence of multiple payment gateways, including cash on delivery, credit/debit cards, and mobile wallets, caters to diverse consumer preferences, contributing to increased adoption of online shopping. Furthermore, the expanding presence of both international giants like Amazon and Newegg and homegrown players like Noon and Dubai Shopper fosters intense competition, leading to innovative offerings and attractive pricing for consumers. The market is segmented across various application categories, including food, beverages, consumer electronics, fashion and apparel, beauty and personal care, and furniture and home goods, reflecting the diverse consumption patterns within the UAE. The continued diversification of e-commerce platforms, encompassing websites, mobile apps, and social media channels, further expands market reach and convenience for consumers. Looking ahead, several trends will shape the future of the UAE e-commerce landscape. The increasing adoption of mobile commerce, fueled by the widespread use of smartphones, will drive significant growth. The rise of social commerce, integrating online shopping directly into social media platforms, will offer new avenues for brands to reach customers. Furthermore, the integration of advanced technologies such as Artificial Intelligence (AI) and Big Data analytics will enhance personalization, improve customer service, and optimize logistical operations, further propelling market expansion. While challenges such as maintaining data security and addressing consumer concerns regarding online fraud remain, the overall trajectory of the UAE e-commerce market points towards sustained and significant growth over the forecast period of 2025-2033. This presents significant opportunities for both established players and emerging businesses to capitalize on the expanding digital economy within the UAE. 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 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.

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.

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.

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.

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.

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.

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.

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.