Why e-commerce is now part of everyday life in the UAE

Each year, the data confirms what we see happening on the ground: e-commerce in the UAE is changing the way we do business and how consumers shop. These shifts are pushing the entire logistics sector to keep pace.

Our latest e-commerce report with Euromonitor International captures just how far we’ve come. The Mena’s e-commerce market has grown from $13.4 billion in 2019 to $34.8 billion in 2024—a 160 per cent increase. That’s not just strong growth—it’s a signal that digital retail is now woven into our everyday routines, from browsing to delivery. The UAE saw similar momentum, growing from $3.4 billion to $8.8 billion during the same period, driven by a growing tech-savvy youthful population  showing preference for online shopping and advanced supporting infrastructures that facilitate higher internet penetration and faster delivery services. This confirms that our ecosystem is delivering real and sustained impact.

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But the real story isn’t just about numbers. It’s about how naturally online shopping has become second nature to people here. Whether it’s buying essentials via quick-commerce apps or exploring new products through social platforms, the lines between physical and digital shopping continue to blur. Consumers expect faster delivery, easier returns, flexible payment options, and real-time support—and the market is rising to meet those expectations.

Technology is playing a major role. Mobile commerce is booming in the UAE, nearly quadrupled in value from 2019, reaching $8 billion in 2024 alone, and AI is already transforming the way platforms personalise experiences and predict demand. 

White Friday, the Middle East’s version of Black Friday, is driving mobile commerce. Retailers use mobile-first strategies during these events to boost revenue and retention to enhance customer engagement. This approach includes responsive design for seamless browsing, fast-loading pages to reduce drop-offs, easy navigation for better usability and mobile payment options such as digital wallets. By leveraging personalised recommendations, push notifications and app-based loyalty programmes, retailers are improving customer satisfaction, driving repeat purchases and maximising conversions in the growing mobile commerce landscape.

We’re also seeing greater adoption of digital wallets, BNPL solutions, and even gamified loyalty programmes that keep customers engaged. Consumer preferences in the UAE continue to evolve in step with the e-commerce landscape. While credit and debit cards remain widely used, the shift toward a cashless economy is unmistakable. Digital wallets are steadily gaining traction—used by 53 per cent of consumers in 2024, up from 41 per cent in 2020—thanks to their convenience, security, and features like integrated rewards. 

Buy Now, Pay Later solutions are also helping retailers boost conversion rates and customer satisfaction. Although cash-on-delivery has declined by 4 per cent over the past year, it still resonates with shoppers who prefer to pay upon delivery. At the same time, services like click-and-collect are becoming more popular, offering flexibility for shoppers and efficiencies for retailers. With government initiatives like the Aani platform enhancing real-time payment infrastructure, the momentum toward a digital-first shopping experience is only set to accelerate.

Being closely involved in building the infrastructure behind this ecommerce ecosystem, I see firsthand how important it is to stay ahead. Free zones and logistics hubs have evolved from offering space to becoming fully integrated enablers of digital trade—supporting everything from seamless cross-border operations to compliance with evolving national standards.

Of course, none of this is happening in isolation. The UAE’s proactive regulatory environment is accelerating transformation. From VAT refund systems for tourists to product compliance pledges signed by major platforms, there’s a shared commitment to making online retail as safe, transparent, and convenient as possible.

While we’re proud of the role EZDubai plays in shaping this journey, the bigger picture is even more exciting. E-commerce is no longer a trend in the UAE. It’s a way of life. And as expectations rise, I believe we are more than ready to deliver what’s next.

And we’re only just getting started!

The writer is CEO, Logistics District, Dubai South