UAE E-Commerce Market Reaches AED42.2 Billion in 2025 With Sustained Growth Projected

NewsDesk
By
NewsDesk
Industry Gulf NewsDesk is the desk responsible for Industry Gulf's daily news coverage, monitoring and reporting developments across the Gulf from official sources, including national news...
3 Min Read
Officials tour EZDubai during its e-commerce zone launch. | EZDubai

The sixth edition of the annual e-commerce report launched by EZDubai Logistics Hub in partnership with Euromonitor International detailed the UAE market’s performance last year. It rose from AED17.6 billion in 2020 to AED42.2 billion in 2025, achieving a 19 percent compound annual growth rate over that period. The hub, located in Dubai South, positioned the findings as evidence of evolving consumer behaviour, payment innovations and logistics improvements reshaping the sector.

The outlook remains positive with the report projecting a 9.9 percent CAGR between 2026 and 2030, leading to a market size of AED67.2 billion by the end of the decade. E-commerce penetration stood at 15.7 percent of total retail sales in 2025 and is set to go beyond 20 percent by 2030, according to Euromonitor International data. These metrics come from the assessment of the country’s digital commerce ecosystem.

At the broader MENASA level, the market expanded from AED232.1 billion in 2020 to AED519.2 billion in 2025, more than doubling in value, the report showed. The document forecasts growth to AED909.3 billion by 2030, backed by greater digital payment use, internet access and infrastructure spending. Euromonitor International analysts pointed to broader consumer participation as a key supporting element.

Apparel and footwear generated the highest e-commerce revenue in the UAE at AED11.4 billion during 2025, the document showed. Consumer electronics ranked second, followed by home care products. Consumer appliances are expected to see accelerated growth in coming years driven by strong consumer spending power and demand for premium upgrades.

The latest figures build on prior assessments from the same research partnership, which tracked the market at AED32.3 billion for 2024 in its previous edition released in 2025. This progression aligns with regional benchmarks where the UAE maintains a leading position in digital retail adoption. A separate Mordor Intelligence analysis projected the UAE e-commerce sector to reach USD12.3 billion in 2026 when including a wider scope of transactions.

EZDubai Logistics Hub encouraged businesses to leverage the insights from the Euromonitor International partnership to adapt strategies in the expanding market. The report series has produced consistent annual updates that map developments through 2030. Such data supports stakeholders seeking to engage with the sector’s trajectory across the MENASA region.

Share This Article
Industry Gulf NewsDesk is the desk responsible for Industry Gulf's daily news coverage, monitoring and reporting developments across the Gulf from official sources, including national news agencies and government communications. Its focus is accurate, timely and factual coverage of the region.