The UAE’s e-commerce market is forecast to maintain its upward trajectory at a CAGR of 9.9% between 2026 and 2030, reaching approximately AED67.2 billion ($18.3 billion) by 2030.
The market had reached AED42.2 billion ($11.5 billion) in 2025, up from AED17.6 billion ($4.8 billion) in 2020, representing a compound annual growth rate (CAGR) of 19% over the five-year period, said EZDubai Logistics Hub, the integrated logistics zone in Dubai South, who, in partnership with Euromonitor International, launched the sixth edition of its annual e-commerce report. In the UAE, payment innovation, BNPL, mobile commerce and advanced logistics infrastructure are among the key factors supporting the sector’s next phase of growth. Apparel and footwear led UAE e-commerce in 2025, while consumer electronics remained the largest e-commerce category across Menasa.
Evolving consumer behaviour
The report highlights e-commerce growth across the wider Middle East, North Africa and South Asia (Menasa) region, as evolving consumer behaviour, payment innovation and advanced logistics reshape the sector.
According to the report, E-commerce penetration in the UAE has also continued to expand, accounting for approximately 15.7% of total retail sales in 2025 and forecast to exceed 20% by 2030, reflecting the maturity of the country’s digital commerce ecosystem.
At a regional level, Menasa’s e-commerce market more than doubled from AED232.1 billion ($63.2 billion) in 2020 to AED519.2 billion ($141.4 billion) in 2025. The report forecasts the market size to reach approximately AED909.3 billion ($247.6 billion) by 2030, supported by rising digital payment adoption, improving internet penetration, broader consumer participation and continued investment in logistics infrastructure.
Strength and maturity
Mohsen Ahmad, CEO of EZDubai Logistics Hub, Dubai South, said: “The findings of our sixth e-commerce report demonstrate the continued strength and maturity of the UAE’s digital economy and the significant opportunities that remain across the wider region. The UAE has established a highly advanced ecosystem supported by world-class digital and logistics infrastructure, strong government initiatives and rapidly evolving payment solutions. At EZDubai Logistics Hub, we remain committed to providing businesses and industry stakeholders with insights that help them understand emerging trends and capitalise on the continued evolution of e-commerce.”
In the UAE, apparel and footwear was the largest e-commerce vertical in 2025 at AED11.4 billion, followed by consumer electronics and home care. Looking ahead, consumer appliances are forecast to record strong growth, supported by high purchasing power, demand for premium products and frequent household upgrades.
Key trends
The report also identifies several trends shaping the next phase of e-commerce growth across the UAE and Menasa. These include the increasing use of artificial intelligence and data-driven personalisation, the expansion of quick commerce and last-mile delivery, the convergence of social media and shopping, and the growing role of digital wallets, Buy Now Pay Later solutions and embedded finance in in enabling faster and more flexible online transactions.
The report further highlights the role of government-led digital transformation, advanced logistics infrastructure, strong connectivity and continued investment in AI and technology as important enablers of e-commerce growth across the UAE and Menasa.—TradeArabia News Service
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