UAE eCommerce Market to Hit US$11,782.3 Million, Growing with a CAGR of 8.6%
With the UAE e-commerce market forecast to grow at an accelerated pace with a CAGR of 8.6%, There are some sectors that are forecast to grow exponentially.
DUBAI, UAE, April 27, 2023/EINPresswire.com/ — According to a recent report titled “UAE e-commerce Market: Industry Trends, Size, Growth, Share, and Forecast 2023-2028”, the UAE’s e-commerce market is expected to reach US$ 11.78 billion by the end of 2023. The market is projected to experience a CAGR (Compound Annual Growth Rate) of 8.6% from 2023 to 2027, making the market size US$ 16.37 billion by 2027.
The report found that the most revenue is produced in China with an expected market size of US$ 1,487 billion in 2023. The number of consumers is also increasing rapidly and is expected to hit a figure of 7.32 million with a user penetration of 74.6% by 2027.
Market Shares Within the UAE’s e-commerce Market
The fashion industry has the largest chunk in the country’s e-commerce industry with a revenue share of 38.7%, with Electronics & Media following in second place with 19.9%.
The third largest players are Toys and Hobby & DIY which both enjoy a share of 15.4%, followed by Food & Personal Care with 13.6% and Furniture & Appliances with 12.4%.
The country bears the title of the 28th largest e-commerce market in the world with expected revenue of US$ 11,782.3 million by 2023, leaving Belgium behind.
The United Arab Emirates participated in the 17% growth rate of the global e-commerce market in 2023, showing the country’s contribution to the thriving industry. Online sales are predicted to soar in the coming years in the UAE as well as globally.
Five Leading e-commerce Stores in the UAE by Gross Sales in 2022
Amazon.ae is the largest online store in the Emirates with a revenue of US$477.6 million in 2022, while namshi.com and carrefouruae.com rank second and third with US$264.8 million and US$223.2 million, respectively.
The report revealed that these top three players obtain 35.2% of the leading 100 e-commerce businesses’ revenue in the country. These rankings account for every store that earns profit in the UAE, including global businesses and the ones with a national focus. Digital Gravity considered only revenue generated in the UAE for this analysis.
The report also discussed the net sales produced in the country in 2022 in the e-commerce sector. It focused on the five subcategories of the e-commerce industry, which are:
(1) Fashion
(2) Electronics & Media
(3) Furniture & Appliances
(4) Food & Personal Care
(5) Toys, Hobby & DIY
With the e-commerce market in the UAE forecast to grow exponentially, it has become essential for businesses to hire a reliable e-commerce web development agency to become a part of this multi-billion dollar industry.
Kashif Faraz
Digital Gravity
+971 4 242 1375
discover@digitalgravity.ae
