The growing comfort of consumers with online shopping and digital payments has led to a boom in the e-commerce sector in the United Arab Emirates. The necessity of having a strong online presence is highlighted by the rise in popularity of social commerce and personalized shopping.

For this reason, we’ve brought you UAE E-commerce Statistics, to help you explore and understand the promising prospects for startups and established e-commerce businesses, due to changing consumer trends and technological advancements.

UAE E-commerce Market Growth

  1. The UAE is the world's 45th-largest e-commerce market. ECDB
  2. To reach US$34.6 billion in 2024, the e-commerce market in the United Arab Emirates is projected to grow by 12.77% annually. Yahoo Finance
  3. Over the projection period, e-commerce is anticipated to grow steadily, with a compound annual growth rate (CAGR) of 10.24% in 2024–2028. Yahoo Finance
  4. By 2024, the UAE eCommerce market is expected to generate USD 6,721.3 million in revenue, exceeding that of Colombia. ECDB
  5. Between 2024 and 2028, the market is anticipated to expand at a CAGR of 8.7%.  ECDB
  6. The eCommerce market in the United Arab Emirates is projected to expand by 9.0% in 2024, contributing to the 10.4% growth rate of the global eCommerce market that year.   ECDB            
  7. In 2024, the eCommerce market is expected to generate $6.98 billion in revenue. Statista          
  8. Between 2018 and 2022, the average annual growth rate of online sales was 23%. The projected value of e-commerce sales in 2022 was approximately USD 27 billion. Statista
  9. Projected market size growth (2020–2025): USD 10 billion Statista
  10. The combination of ROPO (Research Online, Purchase Offline) and BOPIS (Buy Online, Pick-up In-Store) strategies will be the most popular e-commerce trend in 2024.   Ifza
  11. According to ECDB, Amazon.ae is the market leader in the UAE's e-commerce market, with $635.9 million in revenue expected in 2023.  aletihad
  12. VISA and Mastercard, with a combined 96.2% market share, emerged as the most widely used payment methods among online retailers in the United Arab Emirates in 2023, according to ECDB. Furthermore, American Express held a 49.0% portion.  aletihad
  13. Growth is anticipated to be driven by the quick commerce sector, with $162 million in sales predicted by 2024. Equalocean
  14. Increased use of "buy now, pay later" is anticipated; by 2024, almost 90% of sellers will provide this option. Equalocean
  15. The UAE's metaverse e-commerce market is anticipated to expand by 37% between 2024 and 2030. Equalocean
  16. Foreign e-commerce, or UAE customers making purchases outside of the nation, is growing and is predicted to account for 32% of all e-commerce sales by 2025, up from 23% in 2019 and 26% the previous year.  National News
  17. Thirteen countries—the United Arab Emirates, Algeria, Egypt, Iran, Israel, Jordan, Kuwait, Lebanon, Morocco, Oman, Qatar, Saudi Arabia, and Tunisia—were surveyed for the report.  National news
  18. In 2021, sales were dominated by local e-commerce websites, which accounted for 73% of total sales, while foreign websites made up 27%. LinkedIn
  19. In 2021, the UAE government initiated Operation 300bn to support the nation's manufacturing industry to foster economic expansion. Medium
  20. Due to a recent announcement made by Dubai Customs, residents and citizens of the country will pay less when they shop online; imports valued at less than AED 1,000 are free from paying tax fees. This will encourage further growth in e-commerce. To make products purchased online between AED 300 and AED 1,000 more affordable, the threshold has been raised from the AED 300 announced in January.  IntelligentCo

Share of E-commerce in Retail Sales

  1. According to market insights provided by the Dubai Chamber of Commerce and Industry, online sales make up 14.4% of the UAE's retail market at the moment and are expected to grow by an average of 3.4% to 16.5% by 2028.  aletihad
  2. PayPal (E-wallets), which is provided by 36.5% of stores for customer payments, and Cash on Delivery, which is employed by 71.2% of retailers, are two other widely used payment methods in the UAE's e-commerce market.  aletihad
  3. E-commerce is predicted to account for 12.6% of all market sales in the United Arab Emirates by 2026, up from local e-commerce websites' 73% contribution to retail sales in 2021. LinkedIn
  4. Foreign e-commerce platforms are predicted to expand by 19.2% between 2022 and 2026, resulting in a 34% gain in market share, despite the preference for local e-commerce. This suggests that foreign e-retailers will become more competitive in the future. LinkedIn
  5. In 2022, the top 100 online retailers in the United Arab Emirates had net sales in eCommerce of about $2.66 billion. ECDB
  6. In the United Arab Emirates in 2022, Amazon.ae topped the list of the best online retailers based on net sales. ECDB
  7.  In the UAE market, there are other notable players as well, such as sharafdg.com, namshi.com, apple.com, and carrefouruae.com.  ECDB
  8. In 2022, 49% of the net sales of the top 100 online stores were accounted for by the top 5 online stores in the United Arab Emirates. ECDB
  9. The study also projects that by 2026, e-commerce will account for 12.6% of all retail sales in the United Arab Emirates, based on data from Euromonitor. National News

Top Ecommerce Companies in Dubai and UAE (Retailers and B2B)

  1. Ounass.ae: High-end online store with home, beauty, and fashion products; market share: greater than $1 million (2021) Vitro commerce
  2. Amazon.ae: a worldwide e-commerce behemoth with a wide variety of products; market share: US$520.1 million (2021) Vitro commerce
  3. Groupon.ae - an e-commerce platform offering daily sales and discounts on a range of goods and services; US$7.5 million in market share (2022) Vitro commerce
  4. The top 3 e-commerce startups in Dubai are YouGotaGift, Namshi, and RestHero.io. Vitro commerce

The Top Ecommerce Platform in the United Arab Emirates

  1. Amazon.ae (formerly Souq.com), offers localized goods and services; its market share is $82.4 million as of 2021.Dubizzle.com: a well-known UAE classifieds site for buying, selling, and renting different goods and services; Market portion: $28 million.  Vitro commerce
  2. Awok.com is a Dubai-based online marketplace with a $153 million market share that provides a large selection of reasonably priced goods. Vitro commerce

Consumer Behavior in the UAE

  1. The UAE eCommerce market is made up of seven markets. 33.3% of UAE eCommerce revenue comes from the largest market, electronics. Fashion comes in second at 30.2%, followed by groceries (17.0%), hobby & leisure (8.4%), care products (3.8%), DIY (3.7%), and furniture & homeware (3.7%).  ECDB
  2. By 2024, the percentage of users will be 46.7%, and by 2029, it is anticipated to reach 58.0%. Statista
  3. It is anticipated that the average revenue per user (ARPU) will be USD 1,590.00. Statista
  4. In the United Arab Emirates (UAE) in 2023, cards accounted for roughly 48% of all online payments. Wallets came in second that year, at 23 percent. Visa was the most widely used card program that year. Statista
  5. The largest e-commerce category in the United Arab Emirates (2023) is fashion, with a market share of 27%, followed by toys, hobbies, and do-it-yourself projects, with a market share of 29%. Statista
  6. The e-commerce category with the fastest growth (2021–2022) is snack foods (over 850% increase) Meanwhile, among e-commerce categories, bird toys and accessories are the second fastest-growing.  Statista
  7. The UAE has one of the highest internet penetration rates in the world, with over 96% of its citizens having access. Mordor Intelligence
  8. In 2023, the top-selling categories will be fashion (27%), electronics (18%), food and personal care products (13%), toys, DIY products, and interest-related items (29%), furniture and home appliances (12%), and electronics.  Equalocean
  9. Demand for online laundry and home care products is expected to rise significantly in 2023.FinanceYahoo
  10. Paper towel and sanitary care product sales online are anticipated to reach $19.41 million by 2024, growing at a compound annual growth rate of 11.41% between 2024 and 2028. Equalocean
  11. By the end of 2024, the market for hair care products is anticipated to generate $50.47 million in revenue. Equalocean
  12. Over the next three years, food and beverage, media products, and homewares and furnishings will be the fastest-growing e-commerce sectors in the United Arab Emirates. National News
  13. With 34% of all online sales in 2021 going to consumer electronics, the category was followed by food and drink (12%), clothing and footwear (31%), media products (8%), personal accessories (5.8%), and consumer appliances (3.3%). LinkedIn
  14. In 2021, mobile devices—specifically, smartphones and tablets—represented 44% of the $2.6 billion total e-commerce market value. From 2022 to 2026, mobile retail sales are expected to grow at a 15.6% compound annual growth rate and reach $4.6 billion. LinkedIn
  15. In 2021, startups in the automotive sector received the highest amount of funding, amounting to $57.3 billion. Khaleej Times
  16. The travel and fashion sectors, with funding amounts of $26.2 billion and $24.7 billion, respectively, came in second and third place. Khaleej Times
  17. The study shows that more than one-third of consumers in the UAE make weekly purchases online using their smartphones, which is higher than the global average. National News

Future Outlook of E-commerce in UAE

  1. By 2028, the nation's e-commerce gross merchandise value, which was valued at US$30.7 billion in 2023, will have increased to US$51.2 billion. Yahoo Finance
  2. The estimated market size by 2028 is USD 9,378.6 million. ECDB
  3. By 2029, revenue is predicted to grow at a compound annual growth rate (CAGR) of 8.63%, translating into a market volume of US$10.56 billion. Statista
  4. By 2029, there will likely be 5.7 million users in the eCommerce market. Statista
  5. With a compound annual growth rate (CAGR) of 11.52%, the UAE e-commerce market, which was valued at USD 8,856.18 million last year, is anticipated to reach USD 16,532.75 million throughout the forecast period. Mordor Intelligence
  6. million UAE citizens made online purchases last year, and by 2025, this number is predicted to increase to 11.11 million, according to a World Bank report. Mordor Intelligence
  7. The Dubai Chamber of Commerce and Industry predicts that e-commerce sales will reach $8 billion by 2025, thanks to nearly universal internet and mobile phone access. Ifza
  8. The UAE's e-commerce market is expected to reach a value of $17 billion by 2025, driven by rising smartphone usage, internet usage, and advancements in online shopping. Equalocean
  9. $9 billion is the estimated revenue for UAE e-commerce by 2024, with a 66.1% market penetration rate and a compound annual growth rate (CAGR) of 6.54% from 2024 to 2028. Equalocean
  10. A study conducted by the Dubai Chamber of Commerce projects that the e-commerce market in the United Arab Emirates will grow to $9.2 billion by 2026, a substantial 92% increase from 2021. National News
  11. The global e-commerce market is predicted to reach $55.6 trillion by 2027, growing at a compound annual rate of roughly 27.4% from an estimated $13 trillion in 2021, according to research by US-based firm Imarc Group. National News
  12. The UAE's e-commerce market is expected to bring in $17.2 billion by 2027 and grow at an annual rate of 8.4% over the following four years, according to Tradeling, the top B2B e-marketplace in the Middle East. Zawya
  13. The percentage of UAE e-shoppers who make purchases through foreign portals is predicted to increase to 17% by 2025. Arabian Business
  14. The UAE's e-commerce market was estimated to be worth AED 27.5 billion in total in 2023, and by 2028, it is expected to grow to AED 48.8 billion.  WAM
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