UAE e-commerce market valued at over $5bn in 2021

UAE e-commerce market valued at over $5bn in 2021

Total e-commerce in the UAE reached just over $5bn in 2021 and is projected to cross $8bn by 2025, according to a new report launched by EZDubai, the e-commerce zone located in Dubai South, and Euromonitor International. The report found that more consumers in the UAE made online purchases across all categories during 2021 compared to 2020, with an average 75 per cent of respondents typically purchasing online. The fastest-growing sectors by industry from 2021-2025 will be homewares and home furnishings, food and beverage, and media products. Countries in the Middle East are expected to grow their e-commerce business owing to high GDP per capita and internet penetration rates. The UAE and Qatar are in the strongest position, with GDP per capita above $40,000 and internet penetration above 90 per cent. In 2021, the total market size of e-commerce in the MENA region was estimated at $31.7bn. The MENA region is expected to see e-commerce growth of over $18bn in absolute value terms over 2021-2025 reaching over $49bn by 2025. While the MENA is mostly a cash-based economy, after the pandemic, consumers shifted quickly to adopt credit and debit cards. The report noted that in the UAE, credit and debit