UAE E-Commerce Market Size

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 JD.com 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.