UAE's E-Commerce Industry World’s Fastest Growing

The UAE’s E-Commerce industry is among the world’s fastest

The UAE’s E-Commerce industry expects to see a surge in the next decade. Recent statistics reveal an anticipated E-Commerce revenue of AED 37.5 billion ($10.21 billion) in 2023. Likewise, the UAE’s E-Commerce market size is projected to grow 7.65% between 2023-2027, valuing AED 50.5 billion ($13.71 billion) after five years. The UAE was the world’s fastest-growing ECommerce market in 2022 and the growing E-Commerce market is attributed to the surge in online shopping as a result of the global pandemic. 

The growth of UAE’s E-Commerce industry stems from robust internet adoption, digital device ownership and increasing purchase power. Overall, the UAE saw a massive improvement in the Quality of Life Index in 2022. Dubai’s ranking improved from 95 to 49 while Abu Dhabi finished 24th from 84th position it held in 2021. The solid logistics infrastructure and dearth of fulfillment solutions providers have also enabled the country to witness unprecedented growth. 

Household goods, furniture, food and drinks and apparel will continue to dominate the E-Commerce market. As one of the leading market research companies in Dubai, we can affirm that UAE consumers are spending more on clothing, luxury goods, fuel and dining out. The increased UAE consumer spending was helped by the drop in petrol prices and removal of many Covid-related restrictions in 2022. 

UAE E-Commerce Thrives with Global Impact

Almost 100% of UAE’s population has mobile connectivity resulting in 70% of E-Commerce transactions. Strong internet penetration positively impacted not only the UAE but the entire MENA region. Despite global post-pandemic sales slowdown, MENA ECommerce revenues surged by 21%, reaching a remarkable $25 billion last year. 

Strong Mobile Commerce Growth and Local Preference in UAE

Over 33% of UAE consumers made weekly mobile purchases, surpassing the global norm for online shopping frequency. The mobile retail sector achieved a value of AED 9.5 billion ($2.6 billion) in 2022. This constitutes to 44% of the overall E-Commerce market worth. Anticipated growth indicates annual growth rate of 15.6% from 2022-2026, aiming to reach AED 17 billion ($4.6 billion). The rise of loyalty rewards programs by online retailers also fueled the demand for online shopping. 

UAE E-Commerce Growth Linked to Economic Growth

Other factors influencing online shopping surge pertains to strong economic performance. In 2022, the UAE GDP grew by 7.9% and it is predicted to maintain strong momentum in 2023 as well. As for the first quarter of 2023, UAE GDP grew by 3.8% achieving a value of AED 418.3 billion ($114 billion). To bolster economic growth further, the UAE Ministry of Finance also unveiled a 4-year strategy focusing on sustainability, innovation, financial leadership and future planning. 

Research Konnection is one of the best market research companies in the UAE. We specialize in E-Commerce startups in UAE. Contact us on for support in E-Commerce trends in UAE. 


Author: Waqas Siddiqui
As a research consultant, I am passionate about supporting businesses in successfully expanding in the UAE and Gulf region. I can be reached at for research inquiries.