Reasons Why Ecommerce Market is Booming in the UAE

by Zaara 03, Feb 2020

The online shopping concept has become one of the growing modes that future businesses rely on.

Be it the stylish way of adding your favourite products to the cart or clearing the payment procedure in one click through the electronic gadgets; e-commerce has positioned itself in the minds of the users and businesses.

The trend of e-commerce in the Middle East region has also been exceptional, and Dubai is catching up with the trend fast. 

This has widened the business scope for online investors to step in and explore the opportunities the market holds. If you are planning to invest in the e-commerce business setup in UAE, this is the right spot for you to understand the reasons behind the boom.

Ecommerce Growth in Dubai

The UAE is building toward a digitised economy to ease everyday life. The government has been one of the strongest supporters of ensuring that the e-commerce company registration in Dubai turns hassle-free. The pointers contributing to the same include:

1. Higher Penetration of Digital Moves

As the population of the UAE grows, so does the number of shoppers in the country. As a result, digitisation is fast becoming a massive part of everyone's everyday life here in the UAE, and e-commerce is set to grow exponentially for years to come.

2. Flexibility to Use Mobile Wallets

Today, the mobiles have replaced wallet to a great extent as it allows the users to clear their bills on the go. This has increased the growth of FinTech firms as the global giants are partnering themselves with the local and international banks.

3. A Stronger Logistics Connectivity

The UAE has got a strong logistics network that supports e-commerce businesses. The logistics stand as a game-changer in the market as the shipment timings drastically impact consumers' psychology.

To know more, here's a guide on All About the Logistics Business in the UAE, which will give you a better idea of the overall performance of the same.

4. Government Initiatives

The UAE Government has understood the increasing demand for the digital space and thus, has taken numerous steps to take necessary steps to build a strong foundation.

Strategies like UAE Vision 2021 came into existence to support the move at ease.

5. Easy Incorporation Process

Incorporating an e-commerce company in the UAE is an easy process as it requires a few steps to be covered that can be completed with the help of business consultants.

To complete the incorporation proceedings, an e-commerce license must be obtained from the government authorities. To perform the business activities smoothly, an e-commerce License in Dubai needs to be obtained.

6. A Free Ground of Operation

The United Arab Emirates is a flexible ground of operation that allows the investors to operate in multiple zones such as Mainland, Freezone and Offshore. Therefore, one can choose the spot based on the business needs and flexibility.

7. Flexibility of Multi-Currency

Another reason that provokes the investors is the flexibility to use multiple currencies, which turns out profitable for businesses to grow globally.

Whilst brick and mortar shops have dominated up to this point, e-business in Dubai is exponentially growing.

The share of online purchases is expected to grow considerably because local customers engage with digital technologies and the growing penetration of social media and mobile devices. As a result, E-commerce has been gaining popularity and is becoming more than just a fancy way to shop.

So, what are you waiting for? Looking forward to entering the zone?

Well, take a step today with Commitbiz. With years of experience, our experts are here to assist you with the best and most tailored services.

For more information, talk to our experts right now. Contact us today-we'd be glad to assist!


What are the top ecommerce segments in the UAE?

  • Food
  • Fashion
  • Electronics & Media
  • Personal Care
  • Furniture & Appliances

What is the ecommerce industry worth in the UAE?

$5 Billion by 2021

What are the different models of ecommerce business?

  • B2C (Business to Consumer)
  • B2B (Business to Business)
  • C2B (Consumer to Business)
  • C2C (Consumer to Consumer)

Who issues the license for ecommerce business?

Department of Economic Development (DED)

Which freezone is dedicated to the ecommerce business?

Dubai Commercity