The UAE’s e-commerce market is set for explosive growth, reaching $17 billion by 2025, according to a report by quick-commerce (QC) platform YallaHub. This surge will be fueled by rising internet penetration, smartphone adoption, and a preference for convenient online shopping experiences.
The report forecasts that the market will generate $9 billion in revenue from e-commerce by 2024, boasting a market penetration of 66.1%. The rapidly emerging segment of quick commerce is poised to reach $162 million by 2024, further accelerating overall market growth. Overall, it predicts a rise of 6.54% Compound Annual Growth Rate (CAGR) from 2024 to 2028.
According to the report, “Buy now, pay later” options will also gain popularity, with nearly 90% of sellers offering this payment method by 2024. Additionally, the “metaverse e-commerce” segment is set for significant expansion, with a projected 37% growth from 2024 to 2030.
Leading e-commerce segments
In 2023, leading e-commerce segments by market share included toys, DIY, hobbies (29%), fashion (27%), electronics and media (18%), food and personal care (13%), and furniture and appliances (12%). Notably, the online market for home and laundry care products witnessed remarkable demand, with consumers readily purchasing these items on e-commerce platforms.
Leo Dovbenko, CEO and co-founder at YallaHub, said: “The online home and laundry care goods market has seen significant demand among UAE residents. Our data suggests that consumers readily purchase these products on e-shops and online platforms, without needing to visit physical stores.”
Home and laundry care revenue will see increased market penetration, reaching 7.3% this year and 8.2% by the end of 2028, the report said.
