The Future Of eCommerce In The UAE

The Future Of E-Commerce In The UAE 

In the past few years, the UAE has managed to position itself as one of the fastest-growing e-commerce markets in the world. It’s worth is estimated in billions of dollars and this number is expected to rise significantly in the future. The country has transformed into a digital hub providing access to high-speed internet to its citizens. This along with other factors has led to a rise in the popularity of online shopping.

The country’s e-commerce market has gone through numerous changes. From business-friendly laws and regulations to a rise in the popularity of online shopping culture, a variety of factors are responsible for the rapid growth of e-commerce in the area.

Here we’re letting you know about the future of e-commerce in the UAE and why this country is believed to be the next best thing in the world of e-commerce. 

Driving Forces of the UAE’s E-Commerce Market Growth 

There are multiple factors that have driven the growth of the e-commerce market in the UAE. Due to these factors, the vast majority of the population in the UAE prefers online stores over brick and mortar stores. Aside from being one of the fastest-growing economies in the world, the UAE is also cited as a popular shopping hub. Places like Dubai are popular for their huge collection of lifestyle products, electronics, apparel, fashion accessories, and food. That teamed with the following factors makes the UAE the ultimate e-commerce market.

The COVID-19 Impact on Ecommerce in the UAE

The Covid-19 situation and its impact on the global economy is a sign for ecommerce businesses to rally their strengths and identify new measures and strategies to maintain business continuity during social and economic hardships. A key example of this is the launch of a virtual store to allow Dubai Mall retailers to sell their products online on, providing flexibility for customers in the UAE to shop from their preferred brands during this unprecedented time. Learn more here.

Internet Usage and Smartphone Penetration

High internet usage accompanied by smartphone penetration is one of the primary driving forces of growth in the e-commerce market in the UAE. A significant advancement in digital technology has led to a dramatic increase in active mobile internet users in the country. A majority of the population uses the internet on their mobile phones instead of desktop or tablets. A significant rise in the popularity of the online shopping trend is believed to have resulted from the high internet and smartphone usage among the population.

Low Cost & Ease of Doing Business 

The booming e-commerce market in the UAE has attracted some of the major e-commerce players from all over the world. The local laws and regulations are one of the reasons why e-commerce has grown rapidly in the country and are expected to do so in the future. The UAE government has encouraged and facilitated big and small players in the e-commerce market to operate smoothly. Aside from the convenience factor, the cost of doing business in the country is relatively low making it the perfect destination for local and international e-commerce companies to establish a stronghold in the market.

Advancement in Technology 

E-commerce companies in the UAE are constantly experimenting with new technology. This has helped transform the culture of online shopping in the UAE. In cities like Dubai, cutting-edge technology has taken over the world of online shopping. Technological advancement has led to the development of native apps like digital concierge service. With technology playing a crucial role, it is safe to say that the e-commerce market in the UAE is bound to grow at an unprecedented rate.

Current State and the Future of the E-Commerce Market in the UAE

According to many reports, the e-commerce market in the UAE is growing at a rapid rate.  The current evaluation of the e-commerce market in the UAE is estimated to be worth $5.3 billion. The retail sector is leading in terms of sales followed by electronics. The trend of online shopping has taken over the entire country. There has been a significant rise in the number of e-commerce companies offering a full range of products at discounted rates. All these factors have led to the popularity of online shopping among the citizens of the UAE.

Online shopping portals such as,,, etc, are some of the most recognized and popular shopping destinations. These online stores boast a huge collection of different types of products ranging from electronics to fashion items. In this digital-friendly nation, a vast part of the population prefers shopping online instead of visiting the physical stores.

Local businesses and brick and mortar shops have also started warming up to e-commerce. A lot of them have either associated with e-commerce giants like Amazon or developed their own online stores to reach out to a wider customer base and increase their sales. Currently, a lot of prominent e-commerce companies from different parts of the world have started showing a keen interest in the UAE. Shopify held a 6-day event in the UAE to discuss the prospects of e-commerce in the country. VL OMNI was fortunate to be part of the event and discuss the future of UAE’s e-commerce market with the experts and entrepreneurs in the field.

Final Thoughts

Everyone from local brands to international companies has already started expanding in the different regions of the UAE. A lot of these firms are taking the omni-channel approach and using technologically advanced tools to deliver the best user experience to online shoppers. In fact, in the near future, most e-commerce companies are predicted to go mobile-friendly given the rise in popularity of smartphones for online shopping in UAE.

Most UAE citizens find online shopping not only convenient but also easy, hassle-free, and safe. The evolving shopping culture in the country is bound to help the local e-commerce scene grow and develop at a faster rate. Of all the businesses in the UAE in today’s time, e-commerce is considered to be one of the fastest-growing ones. The e-commerce market in the country is considered to be quite competitive as all the online stores are luring customers with their amazing deals and same-day delivery options.

Also, in the near future, new e-commerce companies are expected to make a big splash in the UAE’s e-commerce market. The business-friendly environment of Dubai and other places in the UAE is attracting e-commerce companies from developed countries like the USA and UK.


Guest Blog written by Anil Panghal. Anil is the Content Manager at Dbsouq. He writes on the eCommerce, startups, digital marketing, cosmetic & beauty, health, men or women fashion topics.



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