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    Construction Business News Middle East
    Home»Logistics News»Tradeling Observes Rapid Growth in the UAE’s E-Commerce Market
    Logistics News Analysis News

    Tradeling Observes Rapid Growth in the UAE’s E-Commerce Market

    Vibha MehtaBy Vibha MehtaApril 5, 2023Updated:April 5, 2023
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    Tradeling, the Middle East’s leading business-to-business (B2B) e-marketplace, has observed significant growth in the Middle East and North Africa (MENA) region’s e-commerce sector; the UAE has been an exceptionally bright spot as important 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% annually between 2018 and 2022. The COVID-19 pandemic drove this growth as it accelerated the country’s digital shift and positioned it as an e-commerce leader among Gulf Cooperation Council (GCC) countries; the 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, 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 fueling 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’s e-commerce sales rose by 21% to reach an eye-popping $25 billion in revenue last year.

    With the UAE ranking as the fastest-growing e-commerce market in the world in 2022, and its online population estimated at approximately 1.5 billion people, 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.

    Marius Ciavola, CEO of Tradeling, commented, “While traditional brick-and-mortar stores are still going strong, they are gradually being phased out to become a thing of the past. The convenience of online shopping has been on full display in recent years, with e-commerce spearheading an ‘out with the old and in with the new’ mindset. Since the UAE began digitalising its economy in 2013, immense progress has been made in leaps and bounds across all sectors. E-commerce in particular, demonstrates this, as there is a proliferation of digital wallets, an increasing number of individuals are embracing the idea of a cashless society, and the vast purchasing power of the UAE’s approximate population of 10 million is being realised. The industry is poised to continue growing via investment and partnerships to highlight one simple fact: the future is now.”

    As MENA’s dominant B2B marketplace, Tradeling is instrumental in the UAE’s e-commerce rise. The company has multiplied 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. Partnerships with local entities such as Wio Bank and Food Tech Valley, as well as global ones like Mastercard, further solidify Tradeling’s presence while helping prop up the country’s economy.

    Dubai Chamber of Commerce Dubai Customs e-commerce sector Food Tech Valley Marius Ciavola MENA Tradeling Wio Bank
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