UAE Ecommerce Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

The Report Covers Ecommerce Companies in UAE and the Market is segmented into B2B E-commerce and B2C E-commerce. The market is Segmented by B2C E-commerce (Beauty and Personal Care, Consumer Electronics, Fashion and Apparel, Food and Beverage, Furniture and Home), and B2B E-commerce. Further, the study assesses the impact of COVID-19 on the market.

UAE Ecommerce Market Size

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UAE E-Commerce Market Summary
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Study Period 2019 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2019 - 2022
CAGR 11.52 %
Market Concentration Low

Major Players

UAE E-Commerce Market Major Players

*Disclaimer: Major Players sorted in no particular order


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UAE Ecommerce Market Analysis

The UAE e-commerce market was valued at USD 8856.18 million the previous year and is set to reach USD 16532.75 million over the forecast period, registering a CAGR of 11.52%. In recent years, the e-commerce market in the United Arab Emirates has grown significantly, propelled by several factors, including high internet penetration, a youthful, tech-savvy population, and a solid infrastructure. Over 96% of the population in the United Arab Emirates has access to the internet, making it one of the countries with the greatest internet penetration rates internationally. A World Bank report from the year before stated that 9.82 million United Arab Emirates residents made online purchases, with a predicted growth to 11.11 million by 2025.

  • The United Arab Emirates government has put in place several efforts to encourage and assist the growth of e-commerce in the nation. For instance, the Dubai Free Zones Council introduced the "Digital Silk Road" program to facilitate international e-commerce and strengthen the emirate's status as a hub for the industry. In addition, the government passed laws and regulations to safeguard e-commerce platforms, advance safe online transactions, and safeguard consumer rights. These actions have increased consumer trust in online shopping, fueling the expansion of the e-commerce industry.
  • The United Arab Emirates market is gaining popularity for cross-border e-commerce, with customers routinely purchasing from foreign online merchants. Due to their affordable prices, wide assortment of products, and appealing shipping choices, Chinese e-commerce sites like AliExpress and have become increasingly popular among United Arab Emirates consumers. These platforms offer products in many categories, such as electronics, clothing, and home items.
  • Additionally, the United Arab Emirates government has actively pursued alliances with top global companies and e-commerce behemoths, accelerating the development of online consumer electronics platforms. These partnerships provide well-known companies worldwide to the United Arab Emirates market, providing customers with various electronic products, accessories, and advanced technologies. For instance, the availability of well-known consumer electronics brands on online platforms has been boosted by strategic alliances between governmental organizations and businesses like Amazon.
  • However, cybercrime incidents reduce customer confidence and trust in e-commerce platforms, reducing their willingness to shop online and impeding the market's expansion. Consumers are worried about the security of their financial and personal information and the potential for fraud or duplicitous activities. According to a YouGov survey performed in the United Arab Emirates, 65% of respondents were worried about the security of their personal information when making online transactions.
  • Following COVID-19, the e-commerce industry increasingly emphasized sustainability and moral behaviour. Consumers became more environmentally conscious and favoured patronizing companies focusing on sustainability. E-commerce platforms included eco-friendly packaging, supporting ethical sourcing, and providing sustainable product options to address changing consumer demands.
  • Retailers can currently provide seamless advancement across online and offline marketplaces. Post-COVID-19 market operators in the United Arab Emirates have the potential to establish up-brand sites to match with actual stores. The new information-driven innovations have drastically increased sales and purchases, allowing merchants to offer more customer-driven products than supplier-driven ones. Strategies like "Purchase on the Web and Get from the Store" have significantly increased reach and profits.

UAE Ecommerce Market Trends

Food Industry to Witness Significant Growth

  • The food industry is expected to witness major growth during the forecast period, with confectionery items holding a major share.\
  • Confectionery items are products made of sugar or chocolate, such as candies, chocolates, gums, and pastries. They are widely consumed as snacks, desserts, or gifts. The demand for confectionery items has increased in the UAE due to several factors. Ramadan's gifting season is a significant factor that drives confectionery e-commerce sales in the UAE.
  • For instance, SugarMoo is an online dessert and sweets shop that offers a variety of cakes, cupcakes, ice cream, brownies, cookies, jars, and truffles. Users can order online and get their desserts delivered within 45 minutes. Moreover, Talabat is an online food delivery platform that allows to order food from various restaurants and cuisines in the UAE. Users can also order confectionery desserts from different shops and brands through Talabat.
  • UAE's organizations should coordinate the Ramadan culture, use the online business shift, and use social media platforms to utilize consumer demand efficiently. Entrepreneurs' market position is also boosted by analyzing and applying Ramadan-related purchases made by buyers into business plans.
  • The market is rising due to increasing investments and strategic actions like mergers and acquisitions in adolescent companies. For instance, in February 2023, Etisalat UAE, branded as Etisalat by e&, completed the acquisition of Service Souk DMCC "ServiceMarket. This acquisition is consistent with the Group's aim of empowering consumers, strengthening Smiles' online marketplace presence, and driving company diversification.
  • Moreover, ServiceMarket is an online marketplace for home services. It presently provides over 40 services across many segments in the UAE. It has an established market position and will complement Etisalat by e&'s existing marketplace offerings under the name 'Smiles,' which include online food and grocery delivery, lifestyle deals, and the ability to earn and redeem points at over 10,000 outlets across the UAE. Although traditional confectionery retail accounts for a sizable portion of the market, e-commerce penetration through startups and strategic advancements is anticipated to drive the industry's growth throughout the forecast period.
UAE E-Commerce Market: Estimated Value of Annual Per Capita Expenditure on Confectionery in the United Arab Emirates, in USD, 2014 - 2023

Consumer Electronics to Hold Major Share in the Market

  • The e-commerce market for the consumer electronics segment aims to provide consumers with a simple and easy way to buy various products, such as smartphones, laptops, tablets, TVs, cameras, and audio equipment. Furthermore, the market covers the online sale of such products at competitive rates and the added convenience of home delivery. It also allows businesses and merchants to access clients in other areas and demographics, expanding their customer base and sales potential.
  • The segment has grown significantly in recent years, owing to the increasing popularity of online shopping, the expansion of direct-to-consumer businesses, and the constant innovation and updates of electronic products. For example, Apple, an international brand that sells a wide choice of high-end equipment and best buy, focusing on consumer electronics and appliances, is a successful e-commerce consumer electronics firm. Furthermore, internet marketplaces like Amazon and eBay have extended their electronic offerings, giving consumers more options for acquiring their favourite electronic goods online.
  • Moreover, according to GN Media, a publisher of Gulf News and an English newspaper in the UAE, compared to other offline channels, growth in consumer electronics supplied through distribution channels or online platforms is the fastest in the past year, at 31%.
  • UAE has witnessed a remarkable surge in the consumer electronics segment, revolutionizing the way people shop for electronic devices. This exponential growth can be attributed to the government's proactive initiatives and substantial investments in the digital sector. By fostering a conducive environment for e-commerce and encouraging digital transformation, the UAE government has played a pivotal role in expanding online consumer electronics platforms in the e-commerce market.
  • The UAE government has been at the forefront of digital transformation efforts, realizing the potential of e-commerce and its impact on the consumer electronics sector. Initiatives such as the National Digital Transformation Strategy and the Smart Dubai Initiative have set the foundation for a robust digital ecosystem. These initiatives focus on enhancing government services, promoting innovation, and improving digital infrastructure, providing a solid framework for developing consumer electronics in e-commerce platforms.
UAE E-Commerce Market: Estimated Penetration Rate of Smartphones, in %, UAE, 2018 - 2028

UAE Ecommerce Industry Overview

The United Arab Emirates E-commerce market is witnessing a rise in competitiveness among companies. The market consists of major players, such as Apple Inc., Amazon Inc., Noon, and others. The expanding popularity and use of e-commerce bring new competitors to the industry, boosting competitive rivalry in the United Arab Emirates e-commerce sector.

In February 2023, Amazon invested in a groceries platform to expand its presence in the UAE. The USD 104 million Series D round was led by Amazon's startup investing arm, the Amazon SmbhavVenture Fund. The move comes despite Amazon's continued efforts to increase its share of fresh food, having made significant progress in center-aisle grocery categories, with consumers trusting e-commerce for shelf-stable packaged items more than perishables.

In November 2022, Amazon in the United Arab Emirates announced signing an agreement with LuLu Group as part of its ongoing search for ways to innovate for customers. The agreement aimed to give UAE customers an improved online grocery experience and quick and easy delivery choices. The two businesses were to collaborate under some terms to provide customers on with a seamless online grocery shopping experience supported by a large selection of products, including daily necessities and fresh groceries, amazing prices, and quick delivery options.

UAE Ecommerce Market Leaders

  1. Apple Inc.

  2. Inc.

  3. Noon AD Holdings Ltd

  4. Sharaf DG LLC.

  5. LetsTango.Com

*Disclaimer: Major Players sorted in no particular order

UAE E-Commerce Market Concentration
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UAE Ecommerce Market News

  • May 2023: UAE Mastercard launched Click to Pay with payment service provider (PSP) Foloosi, who has rolled out the revolutionary payment mechanism across its entire merchant base. The cooperation makes the embedded Click to Pay solution the recommended payment method for guest checkout for Foloosi'sretailers and consumers. As part of the rollout, over 6,000 shops will provide Click to Pay to their customers.
  • February 2023: Etisalat UAE, branded as Etisalat by e&, completed the acquisition of Service Souk DMCC "ServiceMarket. This acquisition is consistent with the Group's aim of empowering consumers, strengthening Smiles' online marketplace presence, and driving company diversification.

UAE Ecommerce Market Report - Table of Contents


    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study




    1. 4.1 Market Overview

    2. 4.2 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.2.1 Bargaining Power of Suppliers

      2. 4.2.2 Bargaining Power of Consumers

      3. 4.2.3 Threat of New Entrants

      4. 4.2.4 Threat of Substitutes

      5. 4.2.5 Intensity of Competitive Rivalry

    3. 4.3 Regulatory Landscape of the UAE E-commerce Market

    4. 4.4 Key Market Trends and Share of E-commerce of the Total Retail Sector

    5. 4.5 An Assessment of the Impact of COVID-19 on the Industry

    6. 4.6 Analyst Commentary on the Evolution of the E-commerce Market in the Country


    1. 5.1 Market Drivers

      1. 5.1.1 Increase in Internet Penetration and Smartphone Usage

      2. 5.1.2 Promotion of E-commerce by the Government Sector, including Measures to Strengthen Last-Mile Delivery and Improvise Distribution Centers

    2. 5.2 Market Challenges

      1. 5.2.1 Increasing Incidents of Cybercrime, Fraudulent Transactions on E-commerce Platforms

    3. 5.3 Analysis of key demographic trends and patterns related to ecommerce industry in United Arab Emirates

    4. 5.4 Analysis of the key modes of transaction in the ecommerce industry in United Arab Emirates

    5. 5.5 Analysis of cross-border ecommerce industry in United Arab Emirates

    6. 5.6 Current Positioning of UAE in the E-Commerce Industry in the Middle East


    1. 6.1 By Application

      1. 6.1.1 Food

        1. Fruits and Vegetables

        2. Fish, Poultry, and Meat

        3. Condiments (includes Oil, Sauces, and Spices)

        4. Confectionery Items

        5. Other Applications

      2. 6.1.2 Beverage

        1. Hot Drinks

        2. Soft Drinks and Other Beverages

      3. 6.1.3 Consumer Electronics

      4. 6.1.4 Fashion and Apparel

      5. 6.1.5 Beauty and Personal Care

      6. 6.1.6 Furniture and Home

      7. 6.1.7 Other Applications (Toys, DIY, Media, Etc.)


    1. 7.1 Company Profiles

      1. 7.1.1 Apple Inc.

      2. 7.1.2 Amazon Inc.

      3. 7.1.3 Noon AD Holdings Ltd.

      4. 7.1.4 Sharaf DG LLC.

      5. 7.1.5 LetsTango.Com

      6. 7.1.6 Microless

      7. 7.1.7 LuLu Group International

      8. 7.1.8 Tryano

      9. 7.1.9 Newegg Commerce Inc.

      10. 7.1.10 Dubai Shoppers

    2. *List Not Exhaustive


**Subject to Availability
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UAE Ecommerce Industry Segmentation

Conducting an e-commerce business means fostering relationships and selling information, services, and goods over computer communication networks. E-commerce usually refers to trading goods and services over the Internet, which means broader economic activity. E-commerce consists of B2B and B2C and internal organizational transactions that support these activities.

The UAE e-commerce market is defined based on the revenues generated from the sales of various end-user applications, such as food, beverage, consumer electronics, fashion and appraisal, beauty and personal care, furniture, home, and other end users. The analysis is based on the market insights captured through secondary and primary research. The market also covers the major factors impacting the market's growth in terms of drivers and restraints. The scope of the study has been segmented based on the application (food (fruits and vegetables, fish, poultry and meat, condiments (including oil, sauces, and spices), confectionery items, and other items), beverages (hot drinks, soft drinks, and others), consumer electronics, fashion and apparel, beauty and personal care, furniture, and home, and other applications (toys, DIY, media, etc.)) across the United Arab Emirates.

The UAE E-commerce market is segmented by Application (Food (Fruits & Vegetables, Fish, Poultry & Meat, Condiments, Confectionery Items), Beverages (Hot Drinks, Soft Drinks & Other Beverages), Consumer Electronics, Fashion & Apparel, Beauty & Personal Care, Furniture & Home). The market sizes and forecasts are provided in terms of value (USD million) for all the segments.

By Application
Fruits and Vegetables
Fish, Poultry, and Meat
Condiments (includes Oil, Sauces, and Spices)
Confectionery Items
Other Applications
Hot Drinks
Soft Drinks and Other Beverages
Consumer Electronics
Fashion and Apparel
Beauty and Personal Care
Furniture and Home
Other Applications (Toys, DIY, Media, Etc.)
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UAE Ecommerce Market Research FAQs

The UAE E-Commerce Market is projected to register a CAGR of 11.52% during the forecast period (2024-2029)

Apple Inc. , Inc. , Noon AD Holdings Ltd , Sharaf DG LLC. and LetsTango.Com are the major companies operating in the UAE E-Commerce Market.

The report covers the UAE E-Commerce Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the UAE E-Commerce Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.

UAE Ecommerce Industry Report

Statistics for the 2023 UAE Ecommerce market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. UAE Ecommerce analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.

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UAE Ecommerce Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)