EZDUBAI: E-COMMERCE VALUE IN THE UAE REACHED AED 27.5 BILLION IN 2023, EXPECTED TO SURPASS AED 48.8 BILLION BY 2028

Technology

EZDUBAI: E-COMMERCE VALUE IN THE UAE REACHED AED 27.5 BILLION IN 2023, EXPECTED TO SURPASS AED 48.8 BILLION BY 2028

The e-commerce market size in MENA is estimated at AED 106.5 billion in 2023.

EZDubai, a dedicated e-commerce zone in Dubai South, has unveiled the fourth edition of its ‘E-Commerce Report in the MENA Region 2023’. This report, developed in collaboration with Euromonitor International, a leading provider of global business intelligence, highlights significant developments in the region's e-commerce landscape.

According to the report, the UAE’s e-commerce market size reached AED 27.5 billion in 2023, with projections suggesting it will surpass AED 48.8 billion by 2028. This rapid growth is largely driven by a tech-savvy Gen Z and millennial population, supported by strong government regulations and significant investments in digital infrastructure. In 2023, the top three e-commerce verticals in the UAE by value were apparel and footwear, consumer electronics, and media products.

The report emphasizes a preference for mobile-based shopping among UAE consumers, who value convenience and cost-effectiveness. Credit and debit cards dominate as the preferred payment methods for online purchases, with 93.2% of respondents in Euromonitor International’s 2023 survey expressing confidence in traditional banking. The widespread use of smartphones for online shopping highlights a growing reliance on seamless, mobile-centric experiences and underscores the importance of social media in the e-commerce sector.

The MENA region's e-commerce market also experienced robust growth in 2023, increasing by 11.8% year-on-year to nearly AED 106.5 billion. Since 2018, the market has seen a compound annual growth rate (CAGR) of 25%. By 2028, the MENA e-commerce market size is expected to reach AED 183.6 billion.

Key trends shaping MENA e-commerce include increased omnichannel adoption, a rise in digital payments, and a shift towards payment apps. Membership programs and the expansion of online grocery shopping are also significant trends. Notably, mobile commerce in the UAE and Saudi Arabia has surged, with values nearly quadrupling from 2018 to 2023, reaching approximately AED 14.3 billion and AED 16.1 billion, respectively.

Mohsen Ahmad, CEO of Logistics District, Dubai South, commented on the findings: “We are pleased to launch the fourth e-commerce report in partnership with Euromonitor and share the latest insights on the sector with our stakeholders. The region’s e-commerce industry has been witnessing impressive growth and is primed for further robustness in the future, thanks to widespread high-speed internet connectivity and favorable policies focused on developing digital payments and logistics infrastructure. The UAE has also introduced a new e-commerce law in 2023 to enhance its digital economy by encouraging investment, protecting consumer rights, and fostering innovation. At EZDubai, our mandate is to contribute to the government’s vision and cement the emirate’s position as a hub for regional e-commerce.”

Launched in January 2019 by HH Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, EZDubai aims to attract leading e-commerce companies with its state-of-the-art infrastructure. Strategically located in the heart of the Logistics District of Dubai South, EZDubai sets a benchmark for the e-commerce sector in the region.