The UAE’s e-commerce market is on track to surge to $17 billion next year, as more consumers embrace the convenience of online shopping, according to a report by YallaHub, a Dubai-based marketplace aggregator and quick commerce start-up.

The market is expected to expand significantly in the coming years, with a compound annual growth rate (CAGR) of 6.54% from 2024 to 2028. 

Revenues in the market this year alone is expected to reach $9 billion, boasting a market penetration of 66.1%.

The Middle East and North Africa (MENA) region also mirrors the trend, with the regional e-commerce market forecast to reach $57 billion by 2026.

In the UAE, consumers shopping for toys and other merchandise for DIY and hobbies tend to lead e-commerce transactions, with the segment taking a market share of 29%.

Fashion consumers came second, with a market share of 27%, followed by electronics and media (18%), food and personal care (13%) and furniture and
appliances (12%).

Home and laundry care

However, there has been a “remarkable surge” in demand among consumers looking to buy home and laundry care products.

“The online home and laundry care goods market has seen a significant demand among UAE residents. Our data suggest that consumers readily purchase these products on e-shops and online platforms without needing to visit physical stores,” said Leo Dovbenko, CEO and co-founder of YallaHub.

Revenues in the home and laundry care segment are set to reach $75.66 million by 2024, with its market penetration rising to 7.3% in 2024 and 8.2% by the end of 2028.

For tissue and hygiene care products, revenue is projected to hit $19.41 million, while the e-commerce hair care market is poised to record more than $50 million in revenue by the end of 2024.

(Writing by Cleofe Maceda; editing by Seban Scaria)