Dubai South’s dedicated e-commerce zone released the fourth edition of its ‘E-Commerce Report in the MENA Region 2023’ in partnership with Euromonitor International.
The report reveals that the UAE’s total e-commerce market size reached AED 27.5B ($7.5B) in 2023 and will likely exceed AED 48.8B ($13.3B) by 2028.
UAE e-commerce growth forecast
The Gen Z and millennial demographics drive the swift increase in e-commerce adoption in the UAE, supported by robust government regulations and significant investments in digital infrastructure.
The leading three sectors by value in 2023 were:
Apparel and footwear
Consumer electronics
Media products
Consumers in the UAE favour mobile-based shopping, valuing convenience and cost-efficiency.
Credit and debit cards dominate as the preferred payment methods for online purchases, with 93.2 per cent of respondents in Euromonitor International’s 2023 survey expressing confidence in traditional banking.
Consumers increasingly prefer smartphones for online shopping, highlighting a growing reliance on seamless, mobile-centric shopping experiences and underscoring the importance of social media.
Meanwhile, e-commerce in the MENA region grew by 11.8 per cent in 2023, reaching nearly AED 106.5B ($29B). This growth reflects strong online adoption over the historical period, with a CAGR of 25 per cent since 2018.
The e-commerce market size in the MENA is expected to reach AED 183.6B ($50B) by 2028.
Key trends shaping MENA e-commerce include increased omnichannel adaptation, a rise in digital payments, and a shift towards payment apps, as consumers seek seamless shopping experiences.
Membership programmes and the expansion of online grocery shopping also indicate significant changes.
Mobile Commerce Soars in UAE and Saudi Arabia, Setting Stage for E-commerce Expansion
Moreover, mobile commerce in the UAE and Saudi Arabia has nearly quadrupled in value from 2018 to 2023, reaching approximately AED 14.3B ($3.9B) and AED 16.1B ($4.4B), respectively.
Mohsen Ahmad, CEO of Logistics District, Dubai South, said: “The region’s e-commerce industry has experienced impressive growth and is set for further strength in the future, thanks to widespread high-speed internet connectivity and favourable policies focused on developing digital payments and logistics infrastructure.”
“The UAE also introduced a new e-commerce law in 2023 to enhance its digital economy by encouraging investment, protecting consumer rights, and fostering innovation.”
EZDubai aims to attract leading e-commerce companies and set a benchmark with its infrastructure.
Launched in January 2019 by Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, the e-commerce zone is strategically located in the heart of the Logistics District of Dubai South.
