UAE eCommerce market value to surpass $8bn by 2025; Report

By Shilpa Annie Joseph, Official Reporter
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The recent report by EZDubai, the fully dedicated eCommerce zone in Dubai South, has revealed that the UAE’s total eCommerce market value has reached over $5 billion in 2021 and is expected to surpass $8 billion by 2025.

The report was released in partnership with Euromonitor International, the world’s leading provider for global business intelligence, market analysis, and consumer insights.

According to the report, more consumers in the UAE made online purchases across all categories during 2021 compared to 2020, with an average of 75 percent of respondents typically purchasing online.​ The fastest-growing sectors by industry from 2021 to 2025 will be homewares & home furnishings, food & beverage, and media products.

The expansion of eCommerce in the Middle East and North Africa (MENA) region is mainly driven by strong internet penetration rates, high possession of digital devices, rising incomes, improving logistic advancements, and the increasing presence of global and recognized players that have brought variety and availability to local consumers amid the pandemic, as per the reports. ​

Mohsen Ahmad
Mohsen Ahmad
CEO – Logistics District
Dubai South

“We are pleased to launch the second eCommerce report in partnership with Euromonitor and share the latest insights on the sector with our stakeholders. The growth of eCommerce that is witnessed in the UAE and the MENA region encourages us to work harder and closer with our eCommerce players in order to boost the sector so that the emirate’s eCommerce market becomes a global powerhouse. The relentless government support, as well as the services and solutions that we tailor for our clients to fulfill their objectives, are key factors in the advancement of the sector. At EZDubai, we will continue to cater to the rising demand that comes in tandem to the growth of online buyers and internet penetration.”

Mr. Hussein Doughan, General Manager of Euromonitor International in Dubai said that, “The launch of the second eCommerce report in the MENA region, is due to several factors, among which is the growth of the eCommerce sector that reached over $31.7 billion in 2021.”

“We are delighted to present the report in partnership with EZDubai, and to provide industry players with a strong understanding of the key opportunities in the eCommerce industry through market growth performance, key success factors, and category analysis,” Mr. Doughan added.

UAE consumers purchase from cross-border retailers to access a wider range of products or search for lower prices or higher quality products not offered locally. Further, the UAE has affordable shipping costs for consumers looking to purchase outside the region.

“The leading countries, which UAE consumers purchase from include the USA, India, and China and are often related to apparel and footwear as well as beauty and personal care,” as per the reports.​

According to the report’s findings, foreign eCommerce (UAE consumers purchasing outside of the country) is rising fast, from 23 percent of total eCommerce sales in 2019 to 26 percent in 2021 and this is expected to rise to 32 percent in 2025.​

Related: Ajman Free Zone posts 42% rise in eCommerce license issuance in 2021