Industry expected to grow at a CAGR of 9.4% from 2024 to 2029
EZDubai, the fully dedicated e-commerce zone in Dubai South, has released the fifth edition of its ‘E-Commerce Report in the MENA Region 2024’ in collaboration with Euromonitor International, the world’s leading provider for global business intelligence, market analysis and consumer insights.
The report reveals that the UAE’s e-commerce market reached AED 32.3bn (US$ 8.8bn) in 2024 and is projected to surpass AED 50.6bn (US$ 13.8bn) by 2029.
The UAE’s e-commerce sector continues to expand, driven by a tech-savvy, youthful population with a strong preference for online shopping, alongside advanced infrastructure, widespread internet access, and efficient delivery services. In 2024, the top three product categories by value were apparel and footwear, consumer electronics, and home care.
Free delivery and free returns are powerful drivers of e-commerce in the UAE, with retailers strategically balancing these offerings to enhance customer satisfaction while carefully managing logistics to minimise their impact on profitability.
Surge
Regionally, the MENA e-commerce market reached AED 126.7bn (US$ 34.5bn) in 2024, recording a 13% year-on-year growth. This surge was fuelled by the rise of mobile commerce and cross-border transactions.
By 2029, the market is expected to reach AED 212.2bn (US$ 57.8bn. Growth across the region, particularly in the UAE and Saudi Arabia, is supported by infrastructure investments, government-backed digital initiatives, and a highly connected consumer base.
Food, beverages, and home care products saw significant growth between 2019 and 2024, a trend expected to extend to other categories. The expansion of cross-border e-commerce in MENA is also being driven by increasing demand for international products, improved logistics and payment platforms, and more efficient customs processes.
“The e-commerce sector in the UAE is evolving rapidly, and EZDubai is proud to be at the forefront of this transformation,” concluded Mohsen Ahmad, CEO, Logistics District, Dubai South.