— The United Arab Emirates continues to make bold strides in the digital economy as its e-commerce market reaches AED 32.3 billion (USD 8.8 billion) in 2024, according to the latest edition of the Middle East and North Africa E-Commerce Report 2024. The report, developed by EZDubai in collaboration with Euromonitor International, forecasts the market to soar past AED 50.6 billion (USD 13.8 billion) by 2029.

This rapid growth reflects the UAE’s evolving digital landscape, underpinned by a tech-savvy population, widespread internet access, and a robust digital infrastructure. Young consumers, who are more inclined to shop online, are playing a pivotal role in reshaping retail behavior.

Key Drivers of Growth

The most purchased categories in 2024 included apparel and footwear, consumer electronics, and home care products. Credit and debit cards remained the preferred online payment methods, though digital wallets saw significant uptake—rising from 41% usage in 2020 to 53% in 2024. Flexible payment options such as “Buy Now, Pay Later” are also gaining traction, boosting conversion rates and average cart sizes.

Free delivery and easy returns continue to be powerful incentives, with online retailers leveraging these features to heighten customer satisfaction while maintaining logistical efficiency and profitability.

A Region on the Rise

The e-commerce market across the broader Middle East and North Africa (MENA) reached AED 126.7 billion (USD 34.5 billion) in 2024, reflecting a 13% annual growth rate. With growing mobile commerce, cross-border transactions, and investment in digital ecosystems, the region is projected to climb to AED 212.2 billion (USD 57.8 billion) by 2029.

Countries like the UAE and Saudi Arabia are leading the charge, thanks to strong government backing, smart regulations, and continual investments in logistics and digital transformation.

The Role of EZDubai

EZDubai, a purpose-built e-commerce zone in Dubai South launched in 2019, has been instrumental in this growth. Positioned strategically within Dubai’s logistics district, it is designed to attract top-tier global e-commerce players by offering world-class infrastructure and unmatched logistical connectivity.

Mohsen Ahmad, CEO of the Logistics District at Dubai South, emphasized that the UAE’s progress in digital commerce reflects its forward-thinking policies and vision. “EZDubai is actively driving this transformation, enabling businesses to thrive in a tech-forward, logistics-rich environment,” he noted.

Looking Ahead

As online cross-border shopping gains momentum and more international brands enter the market, the UAE is solidifying its position as a regional and global hub for e-commerce. Enhanced payment systems, efficient logistics, and supportive legislation ensure the country remains at the forefront of the digital economy.