UAE e-commerce market hits Dh32.3 billion
EZDubai report highlights rising popularity of flexible and digital payment methods
DUBAI: The UAE’s e-commerce industry continues to gain momentum, reaching Dh32.3 billion ($8.8 billion) in 2024, according to the fifth edition of the E-Commerce Report in the MENA Region 2024, released by EZDubai in collaboration with Euromonitor International.
The sector is forecast to surpass Dh50.6 billion ($13.8 billion) by 2029, driven by a young, tech-savvy population and robust digital infrastructure.
EZDubai, a purpose-built e-commerce zone located in the Logistics District of Dubai South, has emerged as a key player in enabling this growth. Launched in January 2019 by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, the hub supports global and regional e-commerce firms with advanced infrastructure and strategic connectivity.
UAE e-commerce market
The UAE’s e-commerce market is led by product categories such as apparel and footwear, consumer electronics, and home care. The sector’s growth is further supported by widespread internet penetration, reliable logistics, and a growing preference for online shopping.
Free delivery and returns have become pivotal strategies for retailers, enhancing customer satisfaction and encouraging repeat purchases. Companies are also optimising logistics to manage associated costs while offering flexible services.
Payment trends
According to Euromonitor’s Digital Consumer Survey, credit and debit cards remain the most used payment options in the UAE. However, digital wallets have seen a marked increase in popularity – from 41% in 2020 to 53% in 2024. Alternative options like Buy Now, Pay Later (BNPL) are also on the rise, contributing to higher conversion rates and larger average order values.
These shifts in payment preferences underscore a growing consumer inclination towards flexibility and trust in digital platforms, reinforcing the UAE’s reputation as a forward-thinking e-commerce hub.
Regional market surge
Beyond the UAE, the MENA region’s e-commerce market was valued at Dh126.7 billion ($34.5 billion) in 2024 – up 13% year-on-year. The growth is primarily attributed to increased mobile commerce, cross-border transactions, and investments in digital infrastructure.
By 2029, the MENA market is projected to reach Dh212.2 billion ($57.8 billion), bolstered by government-backed initiatives, improved customs procedures, and enhanced payment solutions. Key markets like Saudi Arabia and the UAE continue to lead the regional expansion.
Between 2019 and 2024, food, beverages, and home care products recorded strong growth. This trend is expected to extend into new categories as digital adoption deepens and consumers seek access to international brands with greater ease.
Industry outlook
Commenting on the findings, Mohsen Ahmad, CEO of the Logistics District at Dubai South, noted: “The e-commerce sector in the UAE is evolving rapidly, and EZDubai is proud to be at the forefront of this transformation. By offering world-class infrastructure and seamless connectivity, we are enabling global and regional players to thrive and scale.”
He added that government policies, strategic investments, and a progressive regulatory environment are critical to the UAE’s continued emergence as a leading player in global digital commerce.