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The e-commerce sector is rapidly growing in the UAE, with the total market size reaching AED 27.5 billion in 2023.
Expected figures show that the market value of this sector will exceed AED 48.8 billion by 2028.
These figures were announced by EZDubai, an e-commerce zone located in southern Dubai, in its fourth edition. MENA region e-commerce report 2023in collaboration with Euromonitor International.
Mohsen Ahmad, CEO of Dubai South Logistics District, said: “The e-commerce industry in the region is showing impressive growth, with widespread adoption of high-speed internet connectivity and an advantageous focus on digital payments and logistics infrastructure.'' “The economy is poised to become even more robust with strong policies.” ”
Tech-savvy consumers contribute to growth
This increase is believed to be due to the tech-savvy Generation Z and Millennials, supported by strong government regulation and significant investment in digital infrastructure.
The top three industries by value in 2023 were identified as apparel and footwear, consumer electronics, and media products.
Mobile-based shopping has reigned supreme in the UAE with consumers seeking convenience and cost-effectiveness.
Credit and debit cards have emerged as the leading payment method, supported by 93.2% of respondents in Euromonitor International's 2023 survey, highlighting unwavering trust in traditional banking.
Smartphones have emerged as the preferred medium for online shopping, highlighting the growing reliance on seamless mobile-centric shopping experiences and highlighting the importance of social media.
At the same time, e-commerce has surged in the MENA region, growing by 11.8% year-on-year in 2023, reaching a market value of nearly AED 106.5 billion.
With this strong growth trajectory, with a compound annual growth rate (CAGR) of 25% since 2018, the e-commerce market size is projected to reach AED 183.6 billion by 2028.
Growth of e-commerce in the MENA region
Key trends shaping MENA's e-commerce landscape include the adoption of omnichannel strategies, the proliferation of digital payments, and the shift to payment apps.
The proliferation of membership programs and the expansion of online grocery shopping signal a major shift.
Additionally, the UAE and Saudi Arabia have seen rapid growth in mobile commerce, nearly quadrupling in value from 2018 to 2023.
Read: 5 ways 'digital' consumers will reshape retail in 2024
