E-commerce in the MENA region saw a significant increase in 2023, with a growth rate of 11.8%. The UAE alone reached a total e-commerce market size of Dh27.5 billion in 2023, and it is predicted to exceed Dh48.8 billion by 2028. This growth can be attributed to the tech-savvy Gen Z and millennial population, as well as strong government regulations and investments in digital infrastructure.
EZDubai, the dedicated e-commerce zone in Dubai South, collaborated with Euromonitor International to release the ‘E-Commerce Report in the MENA Region 2023’. The top three verticals in the UAE in 2023 were apparel and footwear, consumer electronics, and media products. Consumers in the UAE prefer mobile-based shopping, using credit and debit cards as the dominant payment methods for online purchases.
The overall e-commerce market in the MENA region is expected to reach Dh183.6 billion in 2028, reflecting a CAGR growth of 25% since 2018. Major trends shaping e-commerce in the region include increased omnichannel adaptation, a rise in digital payments and payment apps, the popularity of membership programs, and the expansion of online grocery shopping. Mobile commerce has seen significant growth in the UAE and Saudi Arabia, with values reaching approximately Dh14.3 billion and Dh16.1 billion, respectively.
Mohsen Ahmad, CEO of Dubai South’s logistics district, highlighted the impressive growth of the e-commerce industry in the region and the favorable policies focusing on digital payments and logistics infrastructure. The UAE’s introduction of a new e-commerce law in 2023 aims to enhance the digital economy by encouraging investment, protecting consumer rights, and fostering innovation. EZDubai, launched in 2019 by HH Sheikh Mohammed bin Rashid Al Maktoum, aims to attract leading e-commerce companies and solidify the UAE’s position as a regional e-commerce hub.
In conclusion, the e-commerce sector in the MENA region continues to grow rapidly, driven by technological advancements, government support, and changing consumer preferences. With the increasing adoption of mobile commerce, digital payments, and omnichannel experiences, the future of e-commerce in the region looks promising. Companies like EZDubai are playing a key role in shaping the landscape of e-commerce and contributing to the region’s economic growth.
