The UAE’s e-commerce market is projected to grow from AED 32.3 billion ($8.8 billion) in 2024 to over AED 50.6 billion ($13.8 billion) by 2029, according to the latest report from EZDubai, the dedicated e-commerce zone in Dubai South.
This rapid growth reflects a combination of factors, including a tech-savvy, youthful population, widespread internet access, and advanced delivery networks. Together, these elements are turning the UAE into a regional leader in digital retail.
Shifting Trends: Payments, Products, and Customer Behaviour
In 2024, the top e-commerce categories by value included apparel and footwear, consumer electronics, and home care items. While credit and debit cards remain the most common payment method, digital wallets are gaining ground. Usage rose from 41% in 2020 to 53% in 2024, as noted in Euromonitor’s Digital Consumer Survey.
Moreover, flexible payment solutions like Buy Now, Pay Later are becoming increasingly popular. These options not only increase conversion rates but also raise average basket values, showing stronger consumer confidence in online transactions.
Retailers are responding by offering incentives such as free delivery and easy returns. These features help improve customer satisfaction, though companies must balance them against logistics costs.
MENA Growth Driven by Mobile Commerce and Cross-Border Demand
Across the MENA region, e-commerce grew to AED 126.7 billion ($34.5 billion) in 2024, achieving a 13% year-on-year rise. By 2029, the market is expected to reach AED 212.2 billion ($57.8 billion), driven by mobile commerce and cross-border activity.
The UAE and Saudi Arabia are leading this surge. Their growth is backed by digital infrastructure investments and government-led transformation initiatives. As regional consumers demand more international products, improvements in customs processes and logistics are boosting cross-border sales.
Notably, categories such as food, beverages, and home care saw strong performance from 2019 to 2024. These segments are likely to continue expanding in the years ahead.
EZDubai’s Role in Powering Digital Commerce
Mohsen Ahmad, CEO of the Logistics District at Dubai South, commented:
“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.
“This growth is also being fuelled by the UAE government’s forward-thinking policies, smart regulations, and sustained investments in digital transformation, logistics, and infrastructure. As a result, the UAE is not only reinforcing its position as a leading e-commerce hub in the MENA region but also emerging as a competitive global player shaping the future of digital commerce.”
The fifth edition of the “E-Commerce Report in the MENA Region 2024” was compiled in collaboration with Euromonitor International and provides comprehensive insight into market trends across the region.
