How are E-Commerce Companies in UAE Excelling?

How are E-Commerce Companies in UAE Excelling?

The need to innovate and evolve in the digital era is critical to company success, and the worldwide pandemic has highlighted this even more. 

The new normal is directly responsible for the phenomenal acceptance of e-commerce. This notion relates to social distance, lockdowns, and the limited capacity permitted in physical retail locations. 

Due to this transition, the UAE awarded unprecedented e-commerce licenses in 2020, focusing on overseas firms. 

However, for entrepreneurs and investors looking to take their business to the next level, the UAE, the most advanced e-commerce market in MENA, offers limitless options.

E-commerce companies are on the rise in the UAE. Let’s look further at the factors accountable for this growth in the blog. 

Top E-commerce Companies in UAE

Several corporations dominate the e-commerce market in Dubai, from the top down to entrepreneurial initiatives. Learn about how Dubai ranked among the first cities for entrepreneurs.  Here are some of the best companies:

  • Apple
  • Amazon
  • Noon
  • Sharaf DG
  • Namshi
  • Microless
  • Danube Home
  • Ounass
  • Tryano
  • Hi Dubai
  • Dubai Shoppers

The Growth in the E-commerce Industry in UAE

The UAE leads the Gulf Cooperation Council (GCC) in e-commerce sales, with a record $3.9 billion in 2020, accounting for 10% of overall retail sales. This was primarily due to a digital transformation at Covid-19. Furthermore, according to Dubai Customs, e-commerce sales in the UAE are predicted to increase by 23% to US$27 billion (AED100 billion) in 2022.

According to the Dubai Chamber of Commerce and Industry, e-commerce is expected to produce $8 billion in sales by 2025 because the UAE market has nearly 100% internet and mobile phone connectivity.

The Factors Responsible for E-commerce Company’s Growth in UAE

 Due to its geographic and economic settings, the United Arab Emirates (UAE) is well-positioned to capitalize on the booming e-commerce business. To open an e-commerce business, you must obtain a license. Learn more about e-commerce licenses in Dubai

Furthermore, Dubai is regarded as a gateway to the rest of the world, having one of the world's most significant and most technologically sophisticated logistical infrastructures and a favorable environment for corporate growth and employment creation. Learn more about Dubai Logistics City (DLC) Free Zone

Even though Covid-19 has sparked the reforms, there are additional attractions luring investors and businesses to the UAE:

The Governmental Rules and Regulations

First, the UAE government is committed to helping entrepreneurs succeed. There are various new laws to fasten the sector's growth, particularly for entrepreneurs. 

Integrated AI

With artificial intelligence taking over critical retail jobs, you may use AI technologies to gather, study, and personalize the shopping experience from start to finish. Integrate AI to develop a more practical approach to analyzing customers' browsing and buying patterns, allowing you to see and rectify any issues causing them to leave.

Internet Users Rate

The UAE has an internet penetration rate of 100.9 percent; 9.26 million individuals, or almost 93 percent of the population, utilize mobile devices to access the internet. In addition, the UAE people between the ages of 16 and 64 spend 7.5 hours a day on average on the internet.

Area 2071

Area 2071, Hub71, FinTech Hive, and Dubai Future Foundation are some quick business incubators available to entrepreneurs. 

Registered company owners will get a three-year business license from the Dubai Development Authority (DDA), formerly the Dubai Creative Clusters Authority, to operate inside Area 2071. (DCCA).

The area 2071 is the destination for entrepreneurial ventures and boosts e-commerce companies to increase sales growth.

Cashless Economy

The UAE government's policy measures promote a cashless economy and transaction digitization. For example, digital payments accounted for around 23% of all transactions in the United Arab Emirates in 2020. 

In contrast, digital payment participation was just 18% in Saudi Arabia, the GCC's largest economy and one of the most populated. The UAE has experienced even quicker development, with digital payment volumes from SMEs increasing by 44% by 2022.

Increasing E-payment platforms

Online consumers' faith in e-commerce and e-payment platforms has improved significantly. Smart Dubai, Payfort, Ali Pay, CC Avenue, and PayTabs are examples of e-payment platforms that have been adopted.

Companies also use these e-payment platforms to make the payment process easier for their consumers.

Well-equipped Infrastructure

The UAE has an unparalleled logistical infrastructure which boosted the functions of the e-commerce companies in the UAE. This helps the e-commerce business since it necessitates a very unusual infrastructure.

Various factors are responsible for the growth of e-commerce companies in the UAE, which is pretty evident. So if you want to invest or start your own e-commerce business in the UAE, then this is the time. 

Business Setup Worldwide is here to assist you in the company incorporation process. In addition, if you require professional business advice, we will be happy to help. 

Please contact us for additional information and to realize your ambitions so that the entire operation runs smoothly and efficiently.


1. What is the value of the UAE's e-commerce industry?

$3.9 billion in 2020.

2. Does one need an e-commerce license in UAE to sell products online?


3. What are the emerging e-commerce business opportunities in the UAE?

Fashion and apparel
Food delivery

4. From 2021 to 2025, what is the predicted compound annual growth rate for the e-commerce sector?


5. What are the issues in the e-commerce industry in the UAE?

Payment Methods and Shipment Issues
Overburdened Logistics
VAT occurrence

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