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UAE e-commerce market zooms to $5 billion

More consumers in the UAE made online purchases across all categories during 2021, compared to 2020.

The total e-commerce in the UAE, surged to over $5 billion in 2021 and is projected to surpass $8 billion by 2025, according to a data released by EZDubai, a dedicated e-commerce zone in Dubai South, in partnership with Euromonitor International, the world’s leading provider for global business intelligence, market analysis, and consumer insights.

More consumers in the UAE made online purchases across all categories during 2021, compared to 2020, with 75% of respondents typically purchasing online, according to the report.? The fastest-growing sectors by industry from 2021 – 2025 will be homewares and home furnishings; food and beverage; and media products.

Countries in the Middle East are in a better position to enable further e-commerce development due to the high GDP-per-capita and internet penetration, the report said. The UAE and Qatar are on top, with GDP-per-capita above $40,000 and internet penetration above 90 per cent.

Both countries have successfully implemented fiber access in homes and have the highest active mobile-broadband subscriptions in the region.

Online shopping in the Mena region is fast catching up with global powerhouses such as China, with many online retailers scaling up services during Covid-19. By 2021, the total market size is expected to reach an estimate of $31.7 billion, according to the report.

According to the report, in the UAE, credit/debit cards are the preferred method of payment.

Commenting on the report, the CEO of the Logistics District – Dubai South, Mohsen Ahmad, said: “We are pleased to launch the second e-commerce report in partnership with Euromonitor and share the latest insights on the sector with our stakeholders. The growth that is witnessed in the UAE and the Mena region encourages us to work harder and closer with our e-commerce players in order to boost the sector, so that the emirate’s e-commerce market becomes a global powerhouse.

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