Rapid Growth of eCommerce market in UAE – Study and Report

For most of us, the first thing about UAE comes in our mind the is the oil paradise, luxurious cars, rich dried fruits, fantastic shopping malls, an awesome tourist destination, and the Dubai shopping festival. Among the Gulf Cooperation Council (GCC), UAE is located in the Middle East on the Persian Gulf, maintains the high standard of living.

Despite the fact, from last two decades the Middle East countries are focusing on developing their infrastructure. According to Ekos Global’s research, these countries are paving the way in the right direction for growing technology and it says UAE ranks 20th for internet penetration.

Online shopping sector is increasing at extremely high rates in emerging industry like Southeast Asia, China, and India, however, the Middle East countries are showing more interest in eCommerce development. According to visionary innovation group, eCommerce is estimated to reach $ 10 billion by 2018 in the United Arab Emirates (UAE) and according to AT Kearney, this figure is expected to reach $20 billion in the Gulf countries.

Although, shopping malls are completely part of the countryside with Dubai mall being the biggest in the world. Nearly 48% of the populations of Dubai buy goods and services through the internet. If we talk about in terms of velocity, UAE makes between one and five purchases per week online.

Facts that prove UAE’s eCommerce growth

The Middle East is the exceptionally fruitful soil for eCommerce development. The country’s eCommerce has taken an admirable leap, due to the fact that they are investing more and more in the internet infrastructure. Here are the following facts that show how UAE will emerge as leading eCommerce market in the upcoming years.

•The researchers at Frost & Sullivan revealed that Current growth of UAE’s eCommerce market is worth nearly $2.5 billion in a year and this figure is expected to grow up to $ 10 billion by 2018.
•Among the Gulf countries, the UAE holds the largest market share of 53%.
•The UAE has the highest computer ownership market share of 76% around the GCC.
•In the Middle East, for every 10 online customers, UAE accounts for 5 of them.
•e-Tail sales are also estimated to triple between 2014-2019 in the UAE

Regional Leaders

Presently, the Middle East eCommerce marketplace is ruled by a large number of local platforms, like Souq.com and Wadi.com and global brands, such as Amazon, eBay, and Aliexpress.com. The rapid growth in eCommerce sector attracts local companies to invest more in recent years. According to reports, Souq.com which is one of the best eCommerce providers in the region completed a USD 275 million funding round last year, becomes the first unicorn of the Middle East.

On the other hand, another major eCommerce platform Wadi.com has confirmed to have raised $67m in series. The huge investment came in just 10 months after Wadi’s launch.

While most of these companies are located in mostly Saudi Arabia, Qatar, and The UAE. The IT sector and eCommerce are not only growing in Gulf countries, these are also on the rise in Egypt as well. The country Saudi Arabia, Kuwait and The UAE are known for the highest number of eCommerce customers in the Middle East, over 30 million active online stores.

Barrier to growth for eCommerce in GCC

There are considerable difficulties to entry in many countries that is both cultural and infrastructural. These are more than prominent factors in much of the local online buying possible is being essentially unexploited.

One of such difficulties is the lack of house addresses and sophisticated postal facility, which makes package delivery inconvenient in the region. The current process is basically based on giving drivers a set of packages and contact numbers and usually, these only get delivered after multiple phone calls between a customer and the driver. The way that packages are delivered here in the Middle East, as well as South America, Russia, Brazil, has not changed in past 30 years. The founder of Fetchr, Joy Ajlouny said that a company which aims to solve exactly this problem via a proprietary tech system which schedule packages pick-up and delivers by using GPS system from a user’s mobile.

How eCommerce Market managed to make An Impression

The UAE, with its fabulous malls and grand shopping areas, has always been a promising land to retailers. From electronic gadget, clothing, home decors, perfumes, accessories or anything you want to buy, you can get all these stuff. Earlier, people were wavering to take risk in online payments on eCommerce websites. It took a lot of time for retailers to face the e-tailer’s risk in the Middle East. The biggest reason was the unwillingness of people to take risk with online payments.

The UAE has started taking similar business followed by the success of eCommerce websites in the US and UK. The country has managed to make a remarkable benchmark in the eCommerce industry globally.

The evolving lifestyles of the people and the huge demand for smartphones, eCommerce sector has made people’s life easier by allowing them to browse any things or product and getting it delivered to their home. Moreover, these websites make sure that they are built on the safe platform and constantly working on various ideas to impress their online customers. Hence, this has rooted out the major concern of safe and secure payment gateways, building improved trust and reliability in their websites. This is the best way for a business to make use the mutual opportunity and turn it to their favor. After all, it is important to go with the modern trends in the market to compete their competitors.


Non-commercial related IT businesses are also on the rise in Gulf countries, which radically improve the overall infrastructure of the country. For example, Uber in Cairo has surprised the local taxi market and the North African Metropolis is now one of the leading marketers for the San Francisco-based ride-sharing app.

In the end, The UAE is becoming more and more a reap target for investors, eCommerce, and IT entrepreneurs. Nowadays, Companies, consultancies, and organization that develop eCommerce sites are in great demand. A knowledgeable eCommerce developer should be able to guide and take you through the platforms, payment methods, site security design, marketing and framework methodology. For all this, you need to ensure to get the desired ROI by choosing the right Web Design company in Dubai. There is a steady increase in forums, workshops, and seminars for eCommerce site holders and consultants. Such type of initiatives only confirms the advance growth and future of eCommerce business in UAE.

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