Market Overview
| Study Period | 2019 - 2030 |
|---|---|
| Base Year For Estimation | 2024 |
| Forecast Data Period | 2025 - 2030 |
| Market Size (2025) | USD 11.05 Billion |
| Market Size (2030) | USD 20.54 Billion |
| Growth Rate (2025 - 2030) | 12.39% CAGR |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0. |
|
UAE E-Commerce Market Analysis by Mordor Intelligence
The UAE e-commerce market size currently stands at USD 11.05 billion in 2025 and is projected to reach USD 20.54 billion by 2030, advancing at a 12.39% CAGR over 2025-2030. This rapid expansion positions the UAE e-commerce market as the region’s most mature digital marketplace, propelled by a mandatory national digital-identity framework, expanding mobile-wallet usage, and ownership-reform incentives that attract foreign platforms. The shift from physical retail to digital channels is underscored by 9.82 million online shoppers in 2024 and a forecast 11.11 million in 2025.[1]Emirates Today, “Online Shoppers in UAE,” emirates247.com Mobile first behavior, rising disposable income, and social-commerce adoption strengthen conversion, while regulatory clarity and advanced logistics sustain cross-border fulfillment.
Key Report Takeaways
- By business model, the B2C segment led with 68% of UAE e-commerce market share in 2024; B2B is forecast to expand at a 19.5% CAGR through 2030.
- By device type, smartphones captured 79% revenue share in 2024; smart TVs and voice-commerce devices are projected to grow at an 18.1% CAGR to 2030.
- By payment method, cards accounted for 49% of total spend in 2024, while Buy-Now-Pay-Later is expected to grow at a 14.6% CAGR over 2025-2030.
- By B2C product category, fashion held 22% of UAE e-commerce market size in 2024, whereas food and beverage is advancing at a 15.2% CAGR to 2030.
UAE E-Commerce Market Trends and Insights
Drivers Impact Analysis
| Driver | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Mandatory Federal 'UAE Pass' Digital Identity Accelerating Shopper On-Boarding | +2.8% | National, with concentrated adoption in Dubai and Abu Dhabi | Short term (≤ 2 years) |
| Rapid Uptake of Mobile Wallets (e& money, payit) Improving Checkout Conversion | +2.1% | National, with higher penetration in urban centers | Medium term (2-4 years) |
| Adoption of Foreign-Ownership Reforms Lowering Barriers for Global E-tailers | +1.9% | National, with spillover effects to GCC region | Long term (≥ 4 years) |
| High Disposable Income Fueling Luxury Online Purchases | +1.7% | Dubai and Abu Dhabi primarily, extending to Northern Emirates | Medium term (2-4 years) |
| Social-Commerce Momentum via TikTok Shop & Instagram Checkout | +1.4% | National, with youth demographic concentration in major cities | Short term (≤ 2 years) |
| Source: Mordor Intelligence | |||
Understand The Key Trends Shaping This Market
Download PDF
Mandatory Federal “UAE Pass” Digital Identity Accelerating Shopper On-Boarding
The UAE Pass eliminates manual KYC steps and has reduced acquisition costs by up to 35% for leading platforms, with 87% of retail investors now onboarding digitally.[2]Arabian Business, “Viral Dubai Chocolate Trend,” arabianbusiness.com eToro’s May 2025 integration showcases blockchain-verified credentials that speed registration and unlock instant BNPL credit checks. With 90% of all public services targeted for digital access by 2025, the UAE e-commerce market benefits from a unified identity layer that shortens checkout journeys and improves trust, reinforcing the nation’s goal of a paper-free economy.
Rapid Uptake of Mobile Wallets Improving Checkout Conversion
Mobile-wallet penetration rose from 41% in 2020 to 53% in 2024, aided by e& and payit, delivering 15-20% higher conversion for merchants.[3]Swissinfo, “Digital Wallet Adoption in UAE,” swissinfo.ch e& invested USD 20 billion in cloud and 5G deployments that cut page-load times and enable real-time settlements. The shift away from cash-on-delivery lowers logistics costs and aligns with Dubai’s aim to lift e-commerce’s GDP share to 12% by 2026.
Adoption of Foreign-Ownership Reforms Lowering Barriers for Global E-tailers
Since January 2022, 100% foreign ownership has removed the 49% cap for most sectors, letting global brands own UAE entities outright. Amazon expanded fulfillment automation, while Noon partnered with eBay to deepen assortment without local-partner constraints. Integration with new CEPAs reduces duties and accelerates customs clearance, making the UAE e-commerce market a springboard for reaching 2 billion consumers within a four-hour flight.
High Disposable Income Fueling Luxury Online Purchases
Average household disposable income above USD 40,000 underpins premium demand. Ounass leverages concierge delivery, and Emaar Malls posted USD 408 million revenue at 98% occupancy in Q1 2025, feeding online luxury cross-sell. Beauty and personal care could scale from USD 200 million to USD 1 billion by 2025, reflecting affluent shoppers’ preference for curated digital experiences.
Restraints Impact Analysis
| Restraint | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| High Last-Mile Costs in Non-Addressable Areas | -1.8% | Remote areas and outer emirates, limited urban impact | Medium term (2-4 years) |
| Margin Pressure from Quick-Commerce Price Wars | -1.2% | Dubai and Abu Dhabi primarily, spreading to other emirates | Short term (≤ 2 years) |
| Compliance Costs under UAE Personal Data Protection Law 2022 | -0.9% | National, with higher impact on international platforms | Long term (≥ 4 years) |
| Source: Mordor Intelligence | |||
High Last-Mile Costs in Non-Addressable Areas
Deliveries beyond metros can absorb 15-25% of basket value, compared with 3-5% in dense hubs, hampering universal coverage. Drone pilots remain nascent; hence smaller retailers must choose profitability over reach, moderating the UAE e-commerce market’s rural penetration.
Margin Pressure from Quick-Commerce Price Wars
Talabat’s USD 32 million Instashop buyout indicates consolidation as 30-minute delivery promises strain margins. Heavy discounting drives customer-lifetime losses, forcing well-funded players to absorb negative unit economics until scale efficiency improves.
Segment Analysis
By Business Model: B2B Platforms Drive Digital Transformation
B2C accounted for 68% revenue in 2024 as the largest slice of the UAE e-commerce market. However, the B2B segment is forecast to compound at 19.5% annually, illustrating how procurement digitization outpaces consumer retail. Tradeling shipped 3.3 million units in 2024 and expects over AED 2 billion (USD 2.54 billion) annual revenue, a milestone that places the company at the heart of UAE e-commerce market growth.
Higher order values, embedded trade finance, and multi-country reach create defensible economics. Tradeling and Mastercard now offer 5% card discounts, deepening buyer loyalty. C2C remains niche, yet Dubizzle’s Hatla2ee acquisition showcases regional scope. The UAE e-commerce market size for C2C is projected to climb modestly as specialized classifieds extend into verified payment and escrow services.
Note: Segment shares of all individual segments available upon report purchase
Get Detailed Market Forecasts at the Most Granular Levels
Download PDF
By Device Type: Mobile-First Commerce Dominates
Smartphones contributed 79% of 2024 sales, confirming mobile’s primacy in the UAE e-commerce market. e&’s 5G backbone and AWS alliance enable sub-second latency for in-app checkout. Desktop remains relevant for complex B2B catalogs, while connected devices such as smart TVs and voice assistants post an 18.1% CAGR.
The UAE e-commerce market size for emerging device commerce remains small today yet benefits from IoT uptake in affluent households. Voice-initiated re-orders and in-car pay-at-pump pilots diversify consumption moments, embedding commerce into daily routines and driving incremental traffic.
By Payment Method: Digital Transformation Accelerates
Cards held 49% of spend in 2024, the largest slice of UAE e-commerce market payments. BNPL, however, is climbing with a 14.6% CAGR as Tabby’s USD 160 million Series E fuels expansion across malls and marketplaces. Digital-wallet penetration reached 53% in 2024, aided by biometric UAE Pass authentication that reduces checkout clicks.
Merchant adoption of BNPL aligns with Sharia-compliant fee models, widening acceptance among Gen Z shoppers. Cryptocurrency gateways remain exploratory but gain regulatory support through Dubai’s VARA framework, indicating future diversification of the UAE e-commerce industry payments stack.
Note: Segment shares of all individual segments available upon report purchase
Get Detailed Market Forecasts at the Most Granular Levels
Download PDF
By B2C Product Category: Fashion Leads, Food Accelerates
Fashion held 22% share and generated 38.7% of UAE e-commerce market revenue in 2024, reflecting brand depth and influencer marketing. Quick commerce and viral social trends propel the food and beverage sub-sector at a 15.2% CAGR.
Consumer electronics remains sturdy at 19.9% revenue thanks to early tech adoption, while beauty and personal care could hit USD 1 billion sales by 2025. Real-estate momentum, evidenced by Emaar’s AED 19.3 billion (USD 5.26 billion) Q1 2025 property sales, raises home-furnishing demand, further diversifying the UAE e-commerce market.
Geography Analysis
Dubai anchors the UAE e-commerce market with a strategic agenda to boost GDP contribution and cut procedural costs by 20%. Same-day delivery coverage spans over 90% of Dubai’s urban population, supported by free-zone incentives and AI-enabled routing.
Abu Dhabi accelerates via KEZAD’s 252,000 m² Noon fulfillment hub that aids over 5,000 SMEs and supports cross-border flows into the wider GCC. Average order values reach USD 102 nationwide, highlighting premium demand. Northern emirates trail yet benefit from last-mile startups piloting micro-hubs to shorten delivery windows.
Cross-border, the UAE e-commerce market serves as a logistics bridge for AED 212.2 billion in regional online sales expected by 2029. CEPAs with India and Indonesia streamline duties, and double-stacked air-cargo corridors cut customs clearance to under four hours, cementing the UAE as the region’s digital-trade nucleus.
Competitive Landscape
The UAE e-commerce market houses a moderately concentrated field. Amazon.ae posted USD 499 million revenue, Namshi USD 249 million, and Noon USD 169 million in 2024. Noon’s new USD 2 billion funding signals intent to widen assortment and revamp same-day logistics.
Talabat’s Instashop acquisition merges food and grocery in a single app, targeting network-wide fulfillment synergies. Tradeling’s takeover of Axiom Telecom’s distribution arm introduces direct vendor relationships that compress shipment lead times.
Fintech-enabled players such as Tabby and Flow48 provide embedded credit lines, boosting conversion and basket size for merchants. Social-commerce startups Zbooni and ShopperON lower seller onboarding friction, fostering hyper-niche brand discovery and enriching the UAE e-commerce market’s competitive fabric.
UAE E-Commerce Industry Leaders
-
Noon AD Holdings Ltd
-
Sharaf DG LLC.
-
LetsTango.Com
-
Amazon Inc. (Amazon.ae)
-
Namshi General Trading LLC
- *Disclaimer: Major Players sorted in no particular order
Need More Details on Market Players and Competitors?
Download PDF
Recent Industry Developments
- March 2025: Talabat acquired Instashop for USD 32 million to consolidate quick-commerce grocery, seeking route-density efficiencies that improve unit economics.
- March 2025: Flow48 raised USD 69 million Series A to expand revenue-based SME financing, unlocking working-capital options for marketplace sellers.
- February 2025: Tabby secured USD 160 million Series E and partnered with Checkout.com, scaling BNPL across fashion and electronics verticals.
- October 2024: e& completed PPF Telecom Group acquisition, extending digital-service reach to 38 countries and reinforcing the UAE e-commerce market’s telecom backbone.
Research Methodology Framework and Report Scope
Market Definitions and Key Coverage
Our study defines the United Arab Emirates e-commerce market as the total value of goods and services ordered via internet-enabled channels (web or app) by individual consumers and businesses, covering B2C, B2B, and C2C transactions across categories such as fashion, consumer electronics, grocery, beauty, furniture, and niche hobby goods. Revenues are booked at checkout in United States dollars before delivery fees and taxes, matching UAE on-the-ground settlement practices.
Scope exclusion: purely digital content subscriptions, online travel bookings, ride-hailing fares, and business process outsourcing services sit outside this estimate.
Segmentation Overview
- By Business Model
- B2C
- B2B
- C2C
- By Device Type
- Smartphone / Mobile
- Desktop and Laptop
- Other Device Types
- By Payment Method
- Credit / Debit Cards
- Digital Wallets
- BNPL
- Other Payment Method
- By B2C Product Category
- Beauty and Personal Care
- Consumer Electronics
- Fashion and Apparel
- Food and Beverages
- Furniture and Home
- Toys, DIY and Media
- Other Product Categories
Detailed Research Methodology and Data Validation
Primary Research
Mordor analysts completed structured interviews and short surveys with online retailers, 3PL executives, digital-payment firms, and regulators across Dubai, Abu Dhabi, and Sharjah. These discussions clarified take-rates, cross-border share, and emergent payment habits, allowing us to validate secondary signals and adjust assumptions on shopper cohorts and average basket sizes.
Desk Research
We gathered foundational signals from tier-1 public sources such as the International Trade Administration, Dubai Chamber of Digital Economy, UAE Central Bank payment bulletins, Telecommunications and Digital Government Authority statistics, and trade association datasets that track courier volumes and card usage. Supplementary insight flowed from corporate filings, investor presentations, and reputable local press, which we stream into Dow Jones Factiva and D&B Hoovers for rapid screening. To gauge category-level momentum, customs shipment records and Questel patent counts around last-mile tech were also reviewed. This list is illustrative; many additional references informed our evidence bank.
Market-Sizing & Forecasting
A top-down demand pool model starts with UAE retail sales and household expenditure, isolates the online penetration of each product class, and is then cross-checked through sampled merchant gross merchandise value and selected logistics roll-ups. Key variables include internet user base, percentage of mobile checkouts, average order value, card-to-wallet split, delivery success rates, and VAT-adjusted pricing trends, all of which are trended back five years to ensure continuity. Multivariate regression captures how shifts in disposable income, smartphone penetration, and digital-wallet adoption interact to influence online conversion, while scenario analysis buffers for policy or infrastructure shocks. Gaps in bottom-up data are bridged with conservative interpolation using verified ratios from peer segments.
Data Validation & Update Cycle
Outputs face anomaly checks versus payment switch totals, customs records, and listed e-tailer disclosures. Senior analysts review every variance before sign-off. We refresh the model annually and trigger interim updates when material events, regulatory, macroeconomic, or technological, move the market; a final sense-check is run just before publication.
Why Mordor's UAE E-Commerce Baseline Stands Up to Scrutiny
Published figures often diverge because each firm selects different scopes, applies unique inflation or currency treatments, and refreshes at varied cadences.
Key gap drivers here include whether business-only procurement is folded in, how cross-border GMV is allocated, and the rigor of primary validations around basket value and returns.
Benchmark comparison
| Market Size | Anonymized source | Primary gap driver |
|---|---|---|
| USD 11.05 B (2025) | Mordor Intelligence | - |
| USD 79.94 B (2024) | Regional Consultancy A | Bundles wholesale B2B trade and overseas GMV, limited UAE-specific verification |
| USD 125.0 B (2024) | Industry Analysis Firm B | Applies gross MENA total then attributes full value to UAE, with no merchant-level cross-check |
The comparison shows that when scope creep or untested allocations slip in, estimates balloon. By anchoring estimates to clearly defined variables and double-confirming them with field insight, Mordor Intelligence delivers a balanced, transparent baseline decision-makers can rely on.
Need A Different Region or Segment?
Customize Now
Key Questions Answered in the Report
How large is the UAE e-commerce market today?
The UAE e-commerce market is valued at USD 11.05 billion in 2025 and is projected to hit USD 20.54 billion by 2030.
Which segment is growing fastest in the UAE e-commerce market?
B2B e-commerce is the fastest-growing segment with an expected 19.5% CAGR through 2030.
What payment method is rising quickest among UAE online shoppers?
Buy-Now-Pay-Later solutions show the highest growth, forecast at a 14.6% CAGR over 2025-2030.
Which product category leads UAE online retail?
Fashion and apparel hold the largest share at 22% of 2024 sales, while food and beverage is the fastest-advancing category at a 15.2% CAGR.
How are foreign-ownership reforms influencing UAE e-commerce?
The removal of the 49% ownership cap allows global platforms to set up fully owned subsidiaries, accelerating technology deployment and market entry.
What is the main logistical challenge for UAE e-commerce expansion?
High last-mile delivery costs in remote emirates raise order fulfillment expenses, limiting universal service coverage.
Page last updated on:
