UAE E-Commerce Market to Reach AED 32.3 Billion in 2024
Projected growth to AED 50.6 billion by 2029 with rising trends in digital payment methods.
The e-commerce market in the United Arab Emirates is expected to reach AED 32.3 billion in 2024, with projections suggesting it could grow to AED 50.6 billion by 2029, according to a report titled 'E-Commerce in the Middle East and North Africa 2024' issued by Dubai Economy and EuroMonitor International.
The e-commerce sector in the UAE continues to experience significant growth, driven by a tech-savvy younger generation favoring online shopping, advanced digital infrastructure, widespread internet access, and efficient delivery systems.
In 2024, the leading categories in terms of high value are expected to include apparel and footwear, consumer electronics, and home care products.
A consumer survey released by EuroMonitor indicates that credit and debit cards remain the most commonly used payment methods for online shopping in the country.
However, the use of digital wallets has shown substantial growth, increasing from 41% in 2020 to 53% in 2024.
Additionally, alternative payment options like 'Buy Now, Pay Later' are gaining popularity among consumers.
The provision of free delivery and returns is recognized as a key factor contributing to the growth of e-commerce in the UAE, as online retailers utilize these strategies to enhance customer satisfaction.
Regionally, the e-commerce market is anticipated to reach approximately AED 126.7 billion in 2024, reflecting a 13% growth, bolstered by the expansion of mobile commerce and cross-border transactions.
Further projections suggest that the regional market could expand to AED 212.2 billion (USD 57.8 billion) by 2029.
This growth is supported by investments in digital infrastructure and government initiatives.
Notably, the food and beverage and home care product categories have seen remarkable growth from 2019 to 2024.
Mohsen Ahmed, the CEO of Dubai South's Logistics District, emphasized that the e-commerce sector in the UAE is undergoing a rapid transformation, with 'EZ Dubai' taking pride in its role to facilitate this change by offering world-class infrastructure and superior logistics connectivity.
The e-commerce market in the UAE is poised to contribute significantly to the region's economy, reflecting a broader trend towards increasing digital commerce across the Arab world.
By 2030, the digital economy in the Arab region is expected to generate contributions totaling approximately USD 900 billion.
The e-commerce sector in the UAE continues to experience significant growth, driven by a tech-savvy younger generation favoring online shopping, advanced digital infrastructure, widespread internet access, and efficient delivery systems.
In 2024, the leading categories in terms of high value are expected to include apparel and footwear, consumer electronics, and home care products.
A consumer survey released by EuroMonitor indicates that credit and debit cards remain the most commonly used payment methods for online shopping in the country.
However, the use of digital wallets has shown substantial growth, increasing from 41% in 2020 to 53% in 2024.
Additionally, alternative payment options like 'Buy Now, Pay Later' are gaining popularity among consumers.
The provision of free delivery and returns is recognized as a key factor contributing to the growth of e-commerce in the UAE, as online retailers utilize these strategies to enhance customer satisfaction.
Regionally, the e-commerce market is anticipated to reach approximately AED 126.7 billion in 2024, reflecting a 13% growth, bolstered by the expansion of mobile commerce and cross-border transactions.
Further projections suggest that the regional market could expand to AED 212.2 billion (USD 57.8 billion) by 2029.
This growth is supported by investments in digital infrastructure and government initiatives.
Notably, the food and beverage and home care product categories have seen remarkable growth from 2019 to 2024.
Mohsen Ahmed, the CEO of Dubai South's Logistics District, emphasized that the e-commerce sector in the UAE is undergoing a rapid transformation, with 'EZ Dubai' taking pride in its role to facilitate this change by offering world-class infrastructure and superior logistics connectivity.
The e-commerce market in the UAE is poised to contribute significantly to the region's economy, reflecting a broader trend towards increasing digital commerce across the Arab world.
By 2030, the digital economy in the Arab region is expected to generate contributions totaling approximately USD 900 billion.
Translation:
Translated by AI
