UAE E-commerce market Expected to Reach US$9.2 Billion in 2026

  • Publish date: Thursday، 06 October 2022 | Last update: Friday، 07 October 2022
Related articles
UAE Online Sales Are Set to Exceed AED 100 Billion in 2023
E-commerce Growth Value to Exceed $8 Billion in the UAE 2025
Noon expands into Asian markets

The value of the UAE e-commerce market is expected to reach US$9.2 billion in 2026, while the sector’s share of total retail sales in the UAE is projected to reach 12.6 percent by the same year, a new analysis from Dubai Chamber of Commerce has revealed.

فيديو ذات صلة

This browser does not support the video element.

The study, based on data from Euromonitor and released ahead of GITEX Global 2022, on10-14 October 2022, highlighted several factors boosting e-commerce activity in the UAE, as well as high-potential growth opportunities.

Read More: eCommerce definition and platforms explained.

Read More: 10 Reasons Why You Must Have an eCommerce Website in 2021

Read More: Al Bayader Powers Omnichannel, New eCommerce Platform and 9th Store

Total e-commerce sales in the UAE recorded remarkable growth in 2021, reaching $4.8 billion during the year, compared to $2.6 billion in 2019.
Mobile devices, such as Smartphones and tablets, accounted for a majority of e-commerce transactions last year as the mobile retail market reached US$2.6 billion, accounting for 44 percent of the total e-commerce market value. Mobile retail sales are expected to record a compound annual growth rate of 15.6 percent over the 2022-2026 period to reach US$4.6 billion.

Shoppers in the UAE, according to the report, preferred local retail websites to overseas retailers. In 2021, domestic e-commerce websites accounted on average for 73 percent of the total sales while foreign websites received only a 27 percent share.

The report stated that despite the clear preference of buyers utilising domestic websites, increased competition from foreign e-retailers projected in the future. Between 2022 and 2026, foreign e-commerce platforms are expected to grow by 19.2 percent, which would mark a 34 percent gain in market share.

Products

Consumer electronics in the UAE constituted the top-selling online products in 2021 with a 34 percent share, consisting mainly of smartphones, phone accessories, computer accessories, tablets, computers and TVs.

Apparel and footwear accounted for 31 percent, food and beverages 12 percent, media products 8 percent, personal accessories 5.8 percent, and consumer appliances 3.3 percent.

Related articles