EZDUBAI LAUNCHES FOURTH E-COMMERCE REPORT, HIGHLIGHTS KEY TRENDS SHAPING MENA E-COMMERCE MARKET

Technology

EZDUBAI LAUNCHES FOURTH E-COMMERCE REPORT, HIGHLIGHTS KEY TRENDS SHAPING MENA E-COMMERCE MARKET

The total e-commerce market value in the UAE reached AED 27.5 billion in 2023, and is expected to surpass AED 48.8 billion by 2028.  The e-commerce market size in MENA is estimated at AED 106.5 billion in 2023.

EZDubai, the pioneering e-commerce zone situated in Dubai South, has unveiled the latest findings of its ‘E-Commerce Report in the MENA Region 2023’ in conjunction with Euromonitor International, the foremost provider of global business intelligence, market analysis, and consumer insights. According to the report, the UAE’s e-commerce market witnessed substantial growth, reaching a total value of AED 27.5 billion in 2023, with projections indicating a surge to AED 48.8 billion by 2028.

The remarkable uptick in e-commerce adoption within the UAE is attributed to the tech-savvy Gen Z and millennial demographics, bolstered by robust governmental regulations and substantial investments in digital infrastructure. In 2023, the top three verticals by market value were identified as apparel and footwear, consumer electronics, and media products.

Mobile-based shopping emerged as the preferred mode among UAE consumers, driven by factors such as convenience and cost-effectiveness. The report highlights credit and debit cards as dominant payment methods for online transactions, with 93.2% of respondents favoring traditional banking systems. Furthermore, smartphones have emerged as a primary medium for online shopping, underscoring the growing importance of seamless, mobile-centric shopping experiences and the pivotal role of social media platforms.

Across the MENA region, e-commerce continued its upward trajectory in 2023, experiencing a year-on-year growth of 11.8% to reach approximately AED 106.5 billion. The report forecasts a further expansion to AED 183.6 billion by 2028, reflecting robust online adoption and a compounded annual growth rate (CAGR) of 25% since 2018.

Key trends shaping the MENA e-commerce landscape include the growing demand for omnichannel experiences, a surge in digital payments, and a notable shift towards payment apps. Membership programs and the expansion of online grocery shopping also emerged as significant developments. Moreover, mobile commerce witnessed a substantial surge in the UAE and Saudi Arabia, with values nearly quadrupling from 2018 to 2023, reaching approximately AED 14.3 billion and AED 16.1 billion, respectively.

Commenting on the findings, Mohsen Ahmad, CEO of Logistics District at Dubai South, expressed his satisfaction with the report's release, highlighting the region’s impressive e-commerce growth trajectory. He emphasized the pivotal role of high-speed internet connectivity and favorable policies, including the introduction of a new e-commerce law in the UAE in 2023, aimed at fostering investment, protecting consumer rights, and nurturing innovation.

EZDubai, established in January 2019 under the patronage of HH Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, aims to attract leading e-commerce entities and set a benchmark in infrastructure excellence. Strategically located in the Logistics District of Dubai South, EZDubai is poised to contribute to the government’s vision and solidify Dubai's stature as a regional e-commerce huh.