The UAE’s ecommerce market will increase to $8 billion by 2025 as more citizens and businesses shop online.
Interestingly, UAE e-shoppers will continue to buy more from international portals, which reached 26% last year and is anticipated to reach 32% in 2025. That implies UAE portals will have to fight hard for every e-commerce dirham spent by UAE customers. Recently, UAE-based portals have increased their product diversity and lowered their pricing to match those sent from overseas. (Many of the outside orders may be from non-UAE Amazon sites.)
“In 2021, customers in the UAE made more online purchases across all categories, with an average of 75% of respondents regularly purchasing online,” says an EZDubai and Euromonitor International survey.
“Homewares and home furnishings, F&B, and media products will be the fastest growing industries from 2021 to 25.”
Cheaper or better?
Cross-border purchases are in demand as UAE consumers seek a wider selection of products or lower prices than those available locally. Plus, exporting higher-quality products not available locally.
In addition to fashion and footwear, cosmetics and personal care products are frequently purchased from the US, India, and China. “At the present rate of customer preference for online retail, the Middle East will see over $18 billion in e-commerce growth between 2021 and 2025, reaching over $49 billion in 2025.”
“The growth of e-commerce in the UAE and MENA region inspires us to work harder and closer with our e-commerce players to enhance the sector,” said Mohsen Ahmad, CEO of Logistics District – Dubai South.
