Online shopping is now a mainstream habit in the UAE. The country’s e-commerce market reached AED 42.2 billion (about USD 11.5 billion) in 2025, up from AED 17.6 billion in 2020, a compound annual growth rate of about 19%, according to the sixth annual e-commerce report from EZDubai Logistics Hub in Dubai South and Euromonitor International. This guide explains what is driving the growth, where Dubai fits in, and what challenges remain.
The short version
| Measure | Figure |
|---|---|
| UAE e-commerce market, 2025 | AED 42.2 billion (about USD 11.5 billion) |
| Market in 2020 | AED 17.6 billion |
| Growth, 2020 to 2025 | About 19% a year |
| Share of UAE retail sales, 2025 | About 15.7% |
| Forecast growth, 2026 to 2030 | About 9.9% a year |
| Forecast market size, 2030 | About AED 67.2 billion (USD 18.3 billion) |
| Projected share of retail, 2030 | Over 20% |
What is driving growth
- Digital payments. Cards, wallets and buy-now-pay-later options make checkout fast.
- High internet use. More consumers shop on mobile, including through social media.
- Logistics. Jebel Ali Port, Dubai International Airport and Dubai South make Dubai a base for shipping across the Middle East, Africa and South Asia.
- Government strategy. The UAE Digital Economy Strategy, adopted in 2022, aims to lift the digital economy from about 9.7% of GDP to 19.4% by 2031.
- New retail trends. Quick commerce, AI personalisation and faster last-mile delivery are growing.
Where Dubai fits in
Dubai hosts several zones aimed at online trade. Dubai CommerCity is a free zone built for e-commerce companies, with ready-made warehouse and office space. DMCC and Dubai Internet City attract trading and technology firms, and Dubai Silicon Oasis hosts startups. Free zones allow full foreign ownership, which suits overseas sellers who want a regional base.
If you want to sell online in the UAE
- Choose a licence type: mainland, free zone or e-commerce licence, depending on where you will sell and ship.
- Set up a local payment gateway and make sure prices include VAT where it applies.
- Plan returns, delivery times and customer support in Arabic and English.
- Follow consumer protection and data protection rules for online sellers.
Challenges
Competition from global platforms, the cost of last-mile delivery, returns handling and cybersecurity are the main pressures. Sellers also need to watch for fake listings and payment scams.
Related reading
See our guides to Dubai’s non-oil economy and why Dubai attracts foreign investment.
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- Why Dubai Attracts So Much Foreign Investment: Sectors, Rules and Risks
- Shopping Online in Dubai: Delivery, Payments, Returns and Where the Market Is Heading
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