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UAE e-commerce defies regional slowdown as shoppers make fewer but bigger purchases
UAE online retail grew despite a regional downturn in the first half of 2026, as consumers shifted everyday spending online, embraced mobile shopping and prioritised value-driven purchases
- PUBLISHED: Wed 22 Jul 2026, 6:00 AM
The UAE’s e-commerce market continued to expand in the first half of 2026 even as online retail across the wider Gulf region contracted, highlighting a shift in consumer behaviour towards more deliberate and higher-value digital spending.
Research by Udora, a UAE-based gifting marketplace, and Admitad, based on more than 2.5 million online orders across the GCC found that online shopping has become increasingly embedded in the daily routines of UAE residents, particularly for household and lifestyle purchases. Gross merchandise value (GMV) in the UAE rose 2 per cent year-on-year during the first six months of the year, while GCC e-commerce GMV declined 9 per cent over the same period. Orders in the UAE fell 9 per cent, but shoppers spent more per transaction, pushing average order value up from $97 to $111.
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The strongest growth came from categories tied to everyday consumption, with home goods rising 18 per cent, food and delivery services up 15 per cent, and sports and entertainment products increasing 11 per cent. Fashion remained the largest online retail category, accounting for 20.6 per cent of purchases, followed by home goods, automotive products and electronics.
Mobile shopping played a central role in the market’s resilience. The number of orders placed via smartphones climbed 20.5 per cent year-on-year, lifting mobile’s share of total online purchases to 53 per cent. The trend reflects growing consumer reliance on digital platforms for routine purchases, supported by expanding delivery services, cashless payment adoption and the proliferation of super apps.
The findings also suggest consumers are becoming more selective rather than spending less. Promotions and discounts remain important, but increasingly serve as tools for planning purchases rather than encouraging impulse buying. More than half of all online transactions used coupons or promo codes, while the average value of a discounted order increased from $89 to $122 year-on-year. Electronics, fashion and automotive products were among the leading categories benefiting from promotions.
“Consumers today are becoming much more selective about when and where they spend their money,” said Anna Gidirim, chief executive of Admitad. “However, the data shows they are not abandoning online shopping. Instead, they’re making larger, more considered purchases while continuing to rely on digital channels as part of lifestyle.”
The report found shoppers are increasingly influenced by online content and recommendations before completing purchases. Around 15 per cent of consumers relied on online media and content websites for shopping decisions, while 13 per cent were influenced by social media content.
Associate Editor Somshankar Bandyopadhyay brings more than three decades of experience to the KT newsroom. Currently, he manages the news production of the business section, ensuring that the top economic and business news of the day reaches its readers.