The total size of UAE’s e-commerce market is expected to exceed AED48.8 billion ($13.29 billion) by 2028, states the 4th edition of the E-commerce in the Middle East and North Africa 2023 report by EZDubai, a dedicated e-commerce zone in Dubai South. In 2023, the e-commerce market’s total size in the UAE reached AED27.5 billion. The report reveals that, in 2023, the leading sectors by value were clothing and footwear, consumer electronics, and media products.
Preferences shift
In a statement, EZDubai explained that the UAE is seeing substantial growth in e-commerce adoption due to its youth demographic, strong government support, and substantial investments in digital infrastructure.
Moreover, the report states that consumer preferences in the UAE are shifting towards online shopping. Hence, consumers believe that it saves them both time and money. Moreover, 93.2 percent of UAE consumers use credit or debit cards to make online purchases, indicating strong confidence in traditional banking services. Additionally, smartphones are highly popular as a means for online shopping, which further contributes to the surge in the UAE e-commerce market.
Read | UAE ranks second globally in shopping satisfaction: Report
MENA landscape
Shedding light on trends in the Middle East and North Africa (MENA) region, the report revealed that the e-commerce sector in the region grew 11.8 percent in 2023 to around AED106.5 billion. This growth follows an increase in internet usage in the MENA region. By 2028, EZDubai expects the e-commerce market in the MENA region to grow to AED183.6 billion.
In addition to e-commerce growth, mobile commerce in both the UAE and Saudi Arabia has seen a significant surge, with values quadrupling from 2018 to 2023, reaching around AED14.3 billion and AED16.1 billion, respectively.
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