The latest report confirms that the sector has managed to exceed $5 billion by 2021 and is expected to surpass this figure over the years

E-commerce market value in the UAE on the rise

photo_camera PHOTO/ARCHIVO - The UAE's e-commerce sector continued to show growth in 2021, according to the recent report released by EZDubai

EZDubai, an e-commerce company based in the southern part of the city of Dubai, has just released a report stating that over the past year, online commerce has seen considerable growth compared to other years. According to the group, the value of the market has increased to more than $5 billion (18.36 billion Emirati dirhams).

"The growth of e-commerce in the region motivates us to make its market in the UAE a global powerhouse," says Mohsen Ahmed, managing director of the Logistics District-South Dubai. 

The report confirms that online commerce is a trend in recent years. Compared to 2020, online shopping has increased significantly for all types of products. Surveys state that more than 75% of respondents are more likely to shop online than in person. 

EZDubai, which works in partnership with Euromonitor International, an expert in market analysis and consumer insights, forecasts that by 2025, the amount raised will exceed $8 billion - 29.38 billion UAE dirhams. They also point out that the sectors where most purchases will be made by the country's population will be industry, household goods and furnishings, food and beverages, and, finally, multimedia and electronic products.

The document also points to the positioning of Middle Eastern countries as a strong competitor in the global market. According to the report, these territories are in a strong momentum that is very well exploited to continue the development of e-commerce. This is due to the high GDP per capita of these nations, and that the spread of the internet and technological ways to perform any act are booming. 


Of these regions, Emirates and Qatar lead the ranking. Both countries have a GDP per capita of more than $40,000, and within their borders, more than 90% of the population uses the internet on a consistent basis. This is due to a number of projects that have been undertaken with the aim of deploying fibre optics to every home in the country, as well as the fact that users have the highest active mobile broadband subscriptions. 

Added to this is the impact of the effects of the pandemic. People have started to use other ways to pay, and have moved away from the physical format for shopping, increasingly using credit/debit cards or even their own mobile phones. The report notes that credit cards are the preferred method of payment for the majority of the Emirati population. It is also worth noting that restrictive measures to prevent contagion, and the fear of contagion, have led people to shop online from their own homes without having to expose themselves to any risk.

Users, for their part, increasingly prefer it, as they can obtain a wide range of products that can be found outside the country's borders, or purchase other items that are not produced locally. It also allows them to compare prices without having to travel to see where the cheapest is.

This sector is growing significantly in the MENA region and due to its nascent entry into the market, it is being able to attract local and international investment for its further development. Ahmed also recalls that the growth of this sector is mainly due to the support of the government in the region.

"The continued support of the government, and the availability of our services and solutions to help clients achieve their goals, are some of the main factors for the advancement of the sector, as we continue our efforts to meet the increasing demand resulting from the growth of e-commerce and the spread of the internet," concluded Ahmed. 

Internationally, many foreign countries are also consumers and order Emirati products online. These include the United States, India and China. These nations tend to buy clothing and footwear products from the Gulf country, although beauty and personal care products are also very popular outside the country.

More in Economy and business