The UAE’s e-commerce market reached Dhs32.3 billion in 2024 and is expected to grow to over Dhs50.6 billion by 2029, according to a new report by EZDubai in collaboration with Euromonitor International.
The figures come from the fifth edition of the E-Commerce Report in the MENA Region 2024, which highlights the UAE’s position as one of the fastest-growing digital retail markets in the region.
Key growth drivers
The sector’s growth is supported by widespread internet access, advanced logistics, and a digitally engaged population. Leading product categories in 2024 included apparel and footwear, consumer electronics, and home care.
The report also notes that credit and debit cards remain the most common payment method, but digital wallet usage has grown from 41% in 2020 to 53% in 2024. Flexible payment options such as Buy Now, Pay Later are gaining traction, contributing to higher basket values and conversion rates.
Delivery and logistics impact
Free delivery and free returns remain major incentives for UAE consumers. Retailers are balancing these expectations with the need to maintain profitability through strategic logistics management.
Regionally, the MENA e-commerce market recorded a 13% year-on-year growth, reaching Dhs126.7 billion in 2024. It is forecasted to hit Dhs212.2 billion by 2029, driven by mobile commerce, cross-border shopping, and improved logistics and payment systems.
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.”
tanvir@dubainewsweek.com
