The fifth edition of the “2024 E-Commerce Report in the MENA Region” published by EZDubai, a free zone fully dedicated to e-commerce under Dubai South, was prepared in cooperation with Euromonitor International, the world’s leading provider of global business intelligence, market analysis, and consumer insights.
The UAE’s e-commerce sector continues to grow thanks to a tech-savvy young population with a strong inclination towards online shopping, advanced infrastructure, widespread internet access, and efficient delivery services. As of 2024, the top three product categories by value were apparel and footwear, consumer electronics, and home care products.
Digital wallet usage increased in the UAE
According to Euromonitor’s Digital Consumer Survey:
- Credit and debit cards were the most frequently used payment methods in the UAE.
- Digital wallet usage increased significantly from 41 percent in 2020 to 53 percent in 2024.
- Alternative payment options such as “Buy Now, Pay Later” are also gaining popularity, increasing both conversion rates and average basket values. This indicates consumer confidence in flexible payment solutions.
- Free delivery and free returns are among the strongest driving forces of e-commerce in the UAE.
- Retailers offer these advantages strategically to increase customer satisfaction while managing logistics carefully so as not to affect profitability.
MENA e-commerce market reaches $34.5 billion
Regionally, the MENA e-commerce market reached $34.5 billion (AED 126.7 billion) in 2024. It recorded a year-on-year growth of 13 percent. This growth was driven by the rise of mobile commerce and cross-border transactions. The market is expected to reach $57.8 billion (AED 212.2 billion) by 2029.
- Growth, particularly in the UAE and Saudi Arabia, is supported by infrastructure investments, government-backed digital initiatives, and a highly connected consumer base.
- Between 2019 and 2024, food, beverage, and home care products showed significant growth, and this trend is expected to expand to other categories.
- The expansion of cross-border e-commerce in the MENA region is gaining momentum thanks to growing demand for international products, improved logistics and payment infrastructures, and more efficient customs processes.
“The e-commerce sector in the UAE is undergoing rapid transformation”
Commenting on the matter, Mohsen Ahmad, CEO of the Logistics District at Dubai South, said: “The e-commerce sector in the UAE is undergoing rapid transformation, and we at EZDubai are proud to be at the forefront of this transformation. By providing world-class infrastructure and seamless connectivity, we enable global and regional players to grow and scale.
This growth is also supported by the UAE government’s visionary policies, smart regulations, and sustainable investments in digital transformation, logistics, and infrastructure. As a result, the UAE is not only strengthening its position as the leading e-commerce hub in the MENA region but also emerging as a competitive global player shaping the future of digital commerce.”
About EZDubai
EZDubai was designed to attract leading e-commerce companies and to create a benchmark with its infrastructure. Launched in January 2019 by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister, and Ruler of Dubai, the e-commerce zone is strategically located in the heart of the Logistics District of Dubai South.
