The UAE’s e-commerce market reached $8.8 billion (AED32.3 billion) in 2024 and is projected to exceed $13.8 billion (AED50.6 billion) by 2029, according to a report published by EZDubai, the e-commerce zone in Dubai South. The fifth edition of the “E-Commerce Report in the MENA Region 2024” was developed in collaboration with Euromonitor International, the premier provider of global business intelligence, market analysis, and consumer insights.
The e-commerce sector in the UAE continues to flourish, propelled by a tech-savvy, youthful population with a strong inclination towards online shopping. This growth is complemented by advanced infrastructure, extensive internet access, and efficient delivery services. In 2024, the top three product categories by value were apparel and footwear, consumer electronics, and home care.
According to Euromonitor’s Digital Consumer Survey, credit and debit cards remain the most popular payment methods in the UAE. However, the use of digital wallets has surged significantly, rising from 41 percent in 2020 to 53 percent in 2024. Additionally, alternative payment solutions such as Buy Now, Pay Later are gaining traction, improving both conversion rates and average basket values—demonstrating consumer confidence in flexible payment options.
Free delivery and free returns serve as major incentives for e-commerce in the UAE, with retailers strategically balancing these offerings to boost customer satisfaction while carefully managing logistics to mitigate their impact on profitability.
Regionally, the MENA e-commerce market reached $126.7 billion (AED462.4 billion) in 2024, marking a 13 percent year-on-year growth. This increase was driven by the rise of mobile commerce and cross-border transactions. By 2029, the market is anticipated to attain $212.2 billion (AED778.1 billion).
Read more: Middle East mobile app revenues soar to $1.7 billion, recording 18.6 percent YoY growth
Cross-border e-commerce expansion
Growth throughout the region, particularly in the UAE and Saudi Arabia, is bolstered by infrastructure investments, government-supported digital initiatives, and a highly connected consumer base. Food, beverages, and home care products experienced notable growth between 2019 and 2024, a trend expected to extend to other categories.
The expansion of cross-border e-commerce in MENA is also fueled by the rising demand for international products, enhanced logistics and payment platforms, and more efficient customs processes.
In his remarks, Mohsen Ahmad, CEO of the Logistics District at Dubai South, stated, “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 fuelled 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.”
EZDubai was designed to attract leading e-commerce companies and set a benchmark with its infrastructure. The e-commerce zone, launched in January 2019 by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister, and Ruler of Dubai, is strategically located in the heart of the Logistics District of Dubai South.
