Dubai: The UAE's e-commerce market reached AED32.3 billion (US$8.8 billion) in 2024 and is projected to surpass AED50.6 billion (US$13.8 billion) by 2029, according to a report released by EZDubai, the fully dedicated e-commerce zone in Dubai South. 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.
According to Emirates News Agency, the fifth edition of the "E-Commerce Report in the MENA Region 2024," compiled in collaboration with Euromonitor International, highlights that in 2024, the top three product categories by value were apparel and footwear, consumer electronics, and home care. Euromonitor's Digital Consumer Survey indicates that credit and debit cards remain the most used payment method in the UAE. Digital wallet usage has grown significantly, from 41 percent in 2020 to 53 percent in 2024. Additionally, alternative payment options such as Buy Now, Pay Later are gaining popularity, increasing both conversion rates and average basket values, highlighting consumer confidence in flexible payment solutions.
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 minimize their impact on profitability. Regionally, the MENA e-commerce market reached AED126.7 billion ($34.5 billion) in 2024, recording a 13 percent year-on-year growth. This surge was fueled by the rise of mobile commerce and cross-border transactions. By 2029, the market is expected to reach AED212.2 billion ($57.8 billion).
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.
In his comments, Mohsen Ahmad, CEO of Logistics District at Dubai South, emphasized that the e-commerce sector in the UAE is evolving rapidly, and EZDubai is at the forefront of this transformation. By offering world-class infrastructure and seamless connectivity, global and regional players are enabled to thrive and scale. The UAE government's forward-thinking policies, smart regulations, and sustained investments in digital transformation, logistics, and infrastructure are reinforcing its position as a leading e-commerce hub in the MENA region, while also emerging as a competitive global player shaping the future of digital commerce.
EZDubai was designed to attract leading e-commerce companies and create a benchmark with its infrastructure. The e-commerce zone, launched in January 2019 by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister, and Ruler of Dubai, is strategically located in the heart of the Logistics District of Dubai South.