Mena e-commerce industry compound annual growth rate increased by 25% from 2018 to 2023
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E-commerce in the Mena region continued to increase in 2023, registering 11.8% year-on-year growth. — file photo
The UAE's e-commerce market size is expected to reach Dh27.5 billion in 2023 and exceed Dh48.8 billion in 2028, according to a new report on Monday.
EZ Dubai, a fully dedicated e-commerce zone in southern Dubai, collaborates with Euromonitor International, the world's leading provider of global business intelligence, market analysis and consumer services, to be part of the 'E-commerce in Mena Region Report 2023'. The 4th edition has been released. insight.
The rapid uptake of e-commerce in the UAE is being driven by a tech-savvy Gen Z and Millennial population, backed by strong government support for regulation and significant investment in digital infrastructure. . The top three industries by value in 2023 were apparel and footwear, consumer electronics, and media products.
In the UAE, consumers prioritize convenience and cost-effectiveness and prefer mobile-based shopping. As reported by 93.2% of respondents in Euromonitor International's 2023 survey, the primary payment method for online purchases is credit and debit cards, indicating strong confidence in traditional banking. Masu. Smartphones are the widely preferred medium for online shopping, indicating a growing reliance on seamless mobile-centric shopping experiences and highlighting the importance of social media.
Meanwhile, e-commerce in the Mena region will continue to increase in 2023, growing by 11.8% year-on-year to reach nearly AED 106.5 billion, a CAGR of 25x, reflecting strong online penetration over a historic period. . Mena's e-commerce market size is expected to reach AED 183.6 billion in 2028.
Key trends shaping e-commerce for Mena include an increase in omnichannel adaptation, where consumers demand a seamless shopping experience, along with an increase in digital payments and a shift to payment apps. The popularity of membership programs and the expansion of online grocery shopping also signal major changes. Furthermore, mobile commerce has increased significantly in the UAE and Saudi Arabia, with its value almost quadrupling from 2018 to 2023, reaching approximately AED 14.3 billion and AED 16.1 billion, respectively.
Mohsen Ahmad, CEO of Dubai South Logistics District, said: “We are delighted to partner with Euromonitor to launch our 4th e-commerce report and share the latest insights on this sector with our stakeholders.” said. The region's e-commerce industry has experienced impressive growth and is poised to become even more robust in the future due to the widespread adoption of high-speed internet connectivity and favorable policies focused primarily on developing digital payments and logistics infrastructure. It's in place. The UAE has also introduced a new e-commerce law in 2023 to strengthen the digital economy by encouraging investment, protecting consumer rights and fostering innovation. Our mission at EZ Dubai is to contribute to the government's vision and consolidate the emirate's position as a regional e-commerce hub. ”
EZDubai was designed to attract major e-commerce companies and create an infrastructure benchmark. The e-commerce zone was established in January 2019 by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the United Arab Emirates and Ruler of Dubai, and is located in Dubai's southern logistics district. Strategically located in the center.
