Tradeling, the Middle East’s B2B e-marketplace, has observed significant growth in the Middle East and North Africa, MENA region’s e-commerce sector. The UAE has been a bright spot as major investments, acquisitions and partnerships with global companies have helped the country position its capabilities as the 27th largest in the world.
Recent data shows that the UAE’s e-commerce market is projected to generate $17.2 billion in revenue by 2027 and experience an annual growth rate of 8.4% through the next four years .
E-commerce sales in the UAE were estimated to grow by an average of 23% per year between 2018 and 2022. The pandemic was a driving factor for this growth as it accelerated the country’s digital shift and positioned it among GCC countries.
UAE’s online shopping resulted in $2.6 billion in sales in 2019. Its market grew by 53% and recorded $3.9 billion in sales the following year before reaching $4.8 billion in sales in 2021 and reflecting an 84.6% increase over the two years prior .
Almost 100% of the population has Internet connectivity and mobile phone access, and this is what is fuelling 70% of e-commerce transactions. As a result, the Dubai Chamber of Commerce and Industry forecasts e-commerce in the UAE to generate $8 billion in sales by 2025.
The benefits of this strong trajectory have extended beyond the Emirates’ borders and bolstered the region as a whole. Despite signs of a global slowdown trend in online sales post-pandemic, MENA e-commerce sales rose by 21% to reach $25 billion in revenue last year .
With the UAE ranking as the fastest-growing e-commerce market in the world in 2022, all signs point towards this momentum being sustained. Furthermore, a recent change announced by Dubai Customs will likely spur additional e-commerce growth as residents and citizens within the country will pay less when shopping online; goods imported with a value of less than AED 1,000 are exempt from paying tax fees.
The threshold has increased from the AED 300 announced in January to effectively make products bought online for between AED 300 and AED 1,000 cheaper.
As MENA’s dominant B2B marketplace, Tradeling is playing an instrumental role in the UAE’s e-commerce rise. The company has grown rapidly since its inception three years ago with a wide selection of more than 1.7 million products across 14 categories and more than 200,000 registered buyers and sellers from 55 countries.Click below to share this article