UAE’s retail e-commerce market hits $3.9bn in 2020

UAE’s retail e-commerce market hits $3.9bn in 2020

The value of the UAE's retail e-commerce market has increased by 53% year-on-year (YoY) to record $3.9 billion during 2020, attributed to the digital shift caused by the coronavirus (COVID-19) pandemic. E-commerce has represented 8% of the retail market last year, as shown by a new analysis from Dubai Chamber of Commerce and Industry, based on recent data from Euromonitor. The study expected that the value of the retail e-commerce market will rise by a compound annual growth rate (CAGR) to reach $8 billion by 2025. This growth will be driven by several key factors, including high-income potential, high internet penetration rate, developed transport logistics network, modern digital payment systems, growing tech-savvy youth population, and strong government support. Meanwhile, the share of mobile-commerce (m-commerce) in the UAE's e-commerce jumped to 42% in 2020 from 29% in 2015. In 2020, the value of the country's retail m-commerce market reached $1.6 billion, up 56% compared to the previous year. The retail m-commerce market of UAE is expected to increase to $3.9 billion by 2025, and grow with a CAGR of 18.9% between 2020 and 2025.