June, 2024

UAE E-Commerce Market Reaches AED 27.5 Billion in 2023, Projected to Surpass AED 48.8 Billion by 2028

Dubai, UAE: EZDubai, the dedicated e-commerce zone in Dubai South, has unveiled its fourth ‘E-Commerce Report in the MENA Region 2023’ in collaboration with Euromonitor International. The report highlights that the UAE’s e-commerce market reached AED 27.5 billion in 2023 and is expected to exceed AED 48.8 billion by 2028.

The surge in UAE e-commerce is driven by tech-savvy Gen Z and millennials, supported by strong government regulations and significant digital infrastructure investments. Top verticals in 2023 included apparel, consumer electronics, and media products. Mobile-based shopping is preferred, with 93.2% of consumers using credit and debit cards for online purchases.

The MENA region’s e-commerce market grew 11.8% year-on-year in 2023 to AED 106.5 billion, with a CAGR of 25% since 2018. It’s expected to reach AED 183.6 billion by 2028. Key trends include increased omnichannel adoption, digital payments, and the rise of mobile commerce, particularly in the UAE and Saudi Arabia.

Mohsen Ahmad, CEO of Logistics District, Dubai South, commented on the impressive growth and future potential of the region’s e-commerce industry, emphasizing the role of high-speed internet and favorable digital payment policies. He highlighted the UAE’s new e-commerce law introduced in 2023 to boost the digital economy.

Launched in January 2019 by HH Sheikh Mohammed bin Rashid Al Maktoum, EZDubai aims to attract leading e-commerce companies and solidify Dubai’s position as a regional e-commerce hub.

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