UAE e-commerce sector market value hits Dhs27.5bn in 2023
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UAE e-commerce sector market value reaches Dhs27.5bn in 2023

UAE e-commerce sector market value reaches Dhs27.5bn in 2023

Anticipated figures indicate that the UAE’s e-commerce market will surpass Dhs48.8bn by 2028

Gulf Business
UAE e-commerce hits Dhs27.5bn in 2023 GettyImages-157027870

The UAE witnessed a surge in its e-commerce sector, with the total market size reaching Dhs27.5bn in 2023.

Anticipated figures indicate the sector’s market value surpassing Dhs48.8bn by 2028.

These figures were published by EZDubai, the e-commerce zone situated in Dubai South, in the fourth edition of its E-Commerce Report in the MENA Region 2023, in collaboration with Euromonitor International.

Mohsen Ahmad, CEO of Logistics District, Dubai South, remarked, “The region’s e-commerce industry has showcased remarkable growth and is poised for further robustness, driven by widespread high-speed internet connectivity and favorable policies focused on digital payments and logistics infrastructure.”

Tech-savvy consumers contribute to growth

The rise is attributed to the tech-savvy Gen Z and millennial population, bolstered by robust governmental regulations and substantial investments in digital infrastructure.

The top three verticals by value in 2023 were identified as apparel and footwear, consumer electronics, and media products.

In the UAE, mobile-based shopping reigned supreme, driven by consumers keen on convenience and cost-effectiveness.

Credit and debit cards emerged as the dominant payment methods, endorsed by 93.2 per cent of respondents in Euromonitor International’s 2023 survey, highlighting unwavering trust in traditional banking.

Smartphones emerged as the preferred medium for online shopping, underlining a burgeoning reliance on seamless, mobile-centric shopping experiences, and underscoring the significance of social media.

Simultaneously, the MENA region witnessed a surge in e-commerce, with a year-on-year growth of 11.8 per cent in 2023, culminating in nearly Dhs106.5bn in market value.

This robust growth trajectory, boasting a compound annual growth rate (CAGR) of 25 per cent since 2018, is projected to propel the e-commerce market size to Dhs183.6bn by 2028.

E-commerce growth in the MENA region

Key trends shaping the MENA e-commerce landscape include the adoption of omnichannel strategies, a surge in digital payments, and a shift toward payment apps.

The proliferation of membership programmes and the expansion of online grocery shopping mark significant shifts.

Moreover, mobile commerce in the UAE and Saudi Arabia has witnessed an exponential surge, with its value nearly quadrupling from 2018 to 2023.

Read: Five ways ‘digital’ consumers are reshaping retail in 2024

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