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Preface
The UAE’s e-commerce market is expanding steadily, with revenue projected to reach USD 8 billion by 2025, supported by one of the world’s most connected and digitally active populations. In 2024, over 94% of online shoppers were under 34 and 82% were male, reflecting a young, male-driven consumer base with strong demand for electronics and tech products. Expatriates, who make up nearly 90% of the population, continue to shape luxury and international brand consumption, with spending typically peaking during major holidays. Alongside these demographic strengths, government-backed incentives, free trade zones, and advanced logistics reinforce the UAE’s role as a regional e-commerce gateway. Growing adoption of flexible payment methods further signals a market defined by wealth, innovation, and rapid digital transformation.
Key Insights
- Young male-dominated consumption and electronics boom in the UAE
The UAE’s young population boosts its economy and market. In 2024, over 94% of online shoppers were under 34 years old, with males making up 82.2% of this group. UAE men show strong enthusiasm and purchasing power for electronics, positioning the country among global leaders in per capita electronics consumption. - High-income expatriates drive quality consumption, with religious holidays being peak periods
The UAE’s expatriate population accounts for a staggering 88%. High-income expatriates from developed countries tend to favour international brands, luxury goods, and high-end customised services. They are highly sensitive to product quality and the shopping experience, and are willing to pay a premium for high-quality and personalised experiences. As the primary consumer base, they are highly active on e-commerce platforms, frequently purchasing luxury goods, technology products, health and environmentally friendly products, and other high-end items online. During Ramadan, National Day, and festivals, increased promotions in the UAE’s e-commerce market are driven by wealthy expatriates. - Tax benefits and logistics upgrades enable e-commerce companies to easily reach the Middle East and global markets
Free trade zones in the UAE attract international sellers with policies offering 100% ownership, tax exemptions, and customs advantages. The zones in Dubai and Abu Dhabi have advanced logistics and digital infrastructure, serving as e-commerce hubs for the Middle East and beyond. - BNPL reshapes the payment ecosystem and local integration becomes essential
In the UAE, BNPL services such as Tamara have evolved from payment options to key localisation strategies. As consumers favour flexible payments, BNPL meets needs for cash flow and interest-free instalments, boosting merchants’ payment conversion and order success rates. - Antom now supports Tamara, the UAE’s leading BNPL service.
Additionally, 67% of UAE consumers prefer paying online with credit or debit cards, ranking alongside Ukraine as the highest globally. Meanwhile, 86% report feeling either “very confident” or “somewhat confident” about the security of digital payments. However, many UAE consumers have fallen victim to fraud, with some experiencing multiple incidents. Antom uses AI-powered risk control and real-time decision-making to protect merchants and ensure compliance. This helps to prevent fraud and deliver a secure digital payment experience.
Inside the UAE: expat-led demand, policy advantages, and the shift to digital payments
Market overview
The United Arab Emirates (UAE) has a population of 10.48 million, with males making up 64% of the total. The country has a notably youthful population, with 82% aged between 15 and 64, driving strong consumer growth. The official language is Arabic.
With a large economy and high living standards, the UAE ranks among the world’s wealthiest nations. In 2023, its GDP reached $514.13 billion, with a per capita GDP of $49,040.7 – on par with the UK.
Additionally, the country boasts a rapidly growing e-commerce market, which counted 4.2 million users in 2023 and is projected to reach 5.7 million by 2029, with Statista forecasting a compound annual growth rate (CAGR) of 6.02% between 2025 and 2029.
