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UAE’s e-commerce market is projected to surpass $13 billion by 2028

A report predicts that the e-commerce market size in the MENA region will reach $49.9 billion by 2028.

UAE’s e-commerce market is projected to surpass $13 billion by 2028
[Source photo: Krishna Prasad/Fast Company Middle East]

The e-commerce industry has experienced a profound surge in recent years, fuelled by Gen Z and millennial support, favorable government regulations, and substantial investments in digital infrastructure.

In 2023 alone, the UAE’s e-commerce market soared to $7.48 billion. Projections indicate that this figure is poised to double, surpassing $13 billion by 2028.

In collaboration with Euromonitor International, EZDubai’s “E-Commerce Report in the MENA Region 2023highlighted key trends shaping the region’s digital marketplace. Among the insights, the report identified the top three verticals by value in 2023: apparel and footwear, consumer electronics, and media products.

In the UAE, consumer preferences leaned heavily towards mobile shopping, driven by convenience and cost-effectiveness. The prevalent payment methods revolved around credit and debit cards, reflecting the evolving landscape of digital transactions.

At the same time, e-commerce in the MENA region saw an 11.8% year-on-year growth in 2023, totaling nearly $28.9 billion. Projections indicate further expansion, with the market poised to reach $49.9 billion by 2028.

This surge mirrors regional trends embracing omnichannel strategies, a surge in digital payment adoption, the rise of payment apps, and the proliferation of membership or loyalty programs. Additionally, the online grocery sector has experienced significant expansion, reflecting evolving consumer behaviors in the digital landscape.

Mohsen Ahmad, CEO of logistics district Dubai South, said, “The region’s e-commerce industry has been witnessing impressive growth and is primed for further robustness in the future due to the widespread high-speed internet connectivity and favorable policies mainly focused on developing digital payments and logistics infrastructure.” 

“The UAE has also introduced a new e-commerce law in 2023 to enhance its digital economy by encouraging investment, protecting consumer rights, and fostering innovation. At EZDubai, our mandate is to contribute to the government’s vision and cement the emirate’s position as a hub for regional e-commerce,” he added.

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