Electronic Commerce in UAE: Size, Growth, Regulation, and Support.

Electronic Commerce in UAE:

Electronic commerce is the buying and selling of goods and services through the Internet and other digital platforms and has become a vital part of the global economy, transforming the way consumers shop and businesses operate. The UAE is one of the leading countries in the region in terms of e-commerce development, adoption, and innovation. This article will provide an overview and information regarding Electronic Commerce in uae.

Size and Growth of E-commerce in UAE:

The UAE is the largest e-commerce market in the MENA region and ranks second in the world in terms of the Telecommunication Infrastructure Index, which measures the quality and availability of telecom services.

The main drivers of e-commerce growth in the UAE are:

  • High internet penetration rate: which is the highest in the region reaching 99% in 2020.
  • High smartphone penetration rate: the second-highest in the region reaching 91% in 2020.
  • High disposable income per capita: the highest in the region reaching approximately USD 43,103 in 2020.
  • Young and tech-savvy population: which accounts for 60% of the total population and 80% of the online shoppers.

The main segments of e-commerce in the UAE are:

  • Retail e-commerce: includes the online sales of physical goods, such as electronics, fashion, beauty, and home appliances.
  • Service e-commerce: this includes the online sales of intangible goods and services, such as travel, entertainment, education, and health.

Regulation and Support of E-commerce in UAE:

The UAE’s e-commerce sector is regulated by the Telecommunications and Digital Government Regulatory Authority, which is responsible for managing every aspect of the telecom and IT industries in the country, such as:

  • UAE Central Bank: They are a regulatory Framework for Stored Values and Electronic Payment Systems, that aims to facilitate e-commerce innovation and ensure consumer protection and financial stability.
  • Dubai E-commerce Strategy: This aims to enhance the emirate’s position as a leading hub for e-commerce and increase its share of the GDP.
  • Dubai CommerCity: They provide a unique e-commerce ecosystem to global and regional brands to assist them in setting up and operating their e-commerce business in the region.
  • EZDubai: They are a complete e-commerce ecosystem that facilitates B2B and B2C fulfillment, catering to local, regional, and global markets.


The UAE has a robust and advanced e-commerce sector, which is driven by high demand and adoption from customers and offers a range of products and services for various segments, such as retail, service, B2B, and B2C. The UAE’s e-commerce sector is expected to grow further in the coming years, as the country prepares for major events, such as Expo 2020 and the UAE Vision 2021, and leverages emerging technologies, such as 5G, blockchain, AI, and big data.



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