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UAE’s e-commerce market is expected to exceed Dh50.6 billion by 2029
Mena’s e-commerce market estimated at Dh126.7 billion in 2024
- PUBLISHED: Wed 21 May 2025, 8:09 PM
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The UAE’s e-commerce market is projected to surpass Dh50.6 billion ($13.8 billion) by 2029, a report showed on Wednesday.
According to the ‘E-Commerce Report in the Mena Region 2024, created by EZDubai, the fully dedicated e-commerce zone in Dubai South, in collaboration with Euromonitor International, the world’s leading provider for global business intelligence, the UAE’s e-commerce market reached Dh32.3 billion ($8.8 billion) in 2024.
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The UAE’s e-commerce sector continues to expand, driven by a tech-savvy, youthful population with a strong preference for online shopping, alongside advanced infrastructure, widespread internet access, and efficient delivery services. In 2024, the top three product categories by value were apparel and footwear, consumer electronics, and home care.
According to Euromonitor’s Digital Consumer Survey, credit and debit cards remain the most used payment method in the UAE. However, digital wallet usage has grown significantly, from 41 per cent in 2020 to 53 per cent in 2024. Additionally, alternative payment options such as Buy Now, Pay Later are gaining popularity, increasing both conversion rates and average basket values—highlighting consumer confidence in flexible payment solutions.
Free delivery and free returns are powerful drivers of e-commerce in the UAE, with retailers strategically balancing these offerings to enhance customer satisfaction while carefully managing logistics to minimise their impact on profitability.
Regionally, the Middle East and North Africa’s (Mena) e-commerce market reached Dh126.7 billion ($34.5 billion) in 2024, recording a 13 per cent year-on-year growth. This surge was fuelled by the rise of mobile commerce and cross-border transactions. By 2029, the market is expected to reach Dh212.2 billion ($57.8 billion). Growth across the region, particularly in the UAE and Saudi Arabia, is supported by infrastructure investments, government-backed digital initiatives, and a highly connected consumer base.
Food, beverages, and home care products saw significant growth between 2019 and 2024, a trend expected to extend to other categories. The expansion of cross-border e-commerce in Mena is also being driven by increasing demand for international products, improved logistics and payment platforms, and more efficient customs processes.
Mohsen Ahmad, CEO of Logistics District, Dubai South said: “The e-commerce sector in the UAE is evolving rapidly, and EZDubai is proud to be at the forefront of this transformation. By offering world-class infrastructure and seamless connectivity, we are enabling global and regional players to thrive and scale. This growth is also being fueled by the UAE government’s forward-thinking policies, smart regulations, and sustained investments in digital transformation, logistics, and infrastructure. As a result, the UAE is not only reinforcing its position as a leading e-commerce hub in the Mena region, but also emerging as a competitive global player shaping the future of digital commerce.”
Somshankar Bandyopadhyay is a News Editor with close to three decades of experience. Currently, he manages the business section, ensuring that the top economic and business news of the day reaches its readers.