UAE e-commerce market hits $11.5 billion, set to reach $18.3 billion by 2030

The UAE’s e-commerce market reached $11.5 billion in 2025, more than doubling from $4.8 billion in 2020, according to a report by EZDubai Logistics Hub and Euromonitor International.

The sixth annual e-commerce report found that the market grew at a compound annual growth rate of 19% as changing consumer habits, digital payments and improvements in logistics supported the shift toward online shopping.

Growth is expected to moderate but remain strong. The e-commerce market is forecast to grow at an annual rate of 9.9% between 2026 and 2030, reaching $18.3 billion by the end of the period.

Online sales accounted for 15.7% of total retail spending in the country in 2025, meaning nearly one in every six dollars spent by consumers at retail was through e-commerce. That share is expected to exceed 20% by 2030, as consumers shift more of their spending online and retailers expand their digital operations.

In terms of what consumers spent on, apparel and footwear was the largest e-commerce vertical in the UAE in 2025, at USD 3.10 billion, followed by consumer electronics and home care. Looking ahead, consumer appliances are forecast to record strong growth, supported by high purchasing power, demand for premium products and frequent household upgrades.

Mohsen Ahmad, CEO of EZDubai Logistics Hub at Dubai South, said the growth demonstrates the strength and maturity of the UAE’s digital economy, but also shows the opportunities that remain across the wider region.

“The UAE has established a highly advanced ecosystem supported by world-class digital and logistics infrastructure, strong government initiatives and rapidly evolving payment solutions,” Ahmad said.

He added that EZDubai Logistics Hub would remain committed to providing businesses and industry stakeholders with insights to help them understand emerging trends and capitalize on the continued evolution of e-commerce.

The report, which tracks the wider Middle East, North Africa and South Asia (MENASA) region, also found strong growth at the regional level. MENASA’s e-commerce market more than doubled from $63.2 billion in 2020 to $141.4 billion in 2025.

The report forecasts the market to reach approximately $247.6 billion by 2030, supported by rising adoption of digital payments, improving internet penetration and a broader online consumer base in the region.

AI to reshape the next phase of e-commerce growth

The report also identifies several trends shaping the next phase of e-commerce growth across the UAE and MENASA. These include the growing use of artificial intelligence and data-driven personalisation to better meet consumer preferences and needs. Retailers are also expanding quick commerce and last-mile delivery, while social media and online shopping are becoming increasingly integrated. Meanwhile, digital wallets, buy-now-pay-later solutions, and embedded finance are also expected to play a growing role in enabling faster and more flexible online transactions.

The report further highlights government-led digital transformation, advanced logistics infrastructure, strong connectivity and continued investment in AI and technology as important enablers of e-commerce growth across the UAE and MENASA.