United Arab Emirates’ e-commerce volume to reach $11.5B by 2029: Official

By Sibel Morrow

DUBAI (AA) – E-commerce volume in the United Arab Emirates (UAE) is expected to reach $7 billion by the end of 2024 and rise to $11.5 billion by 2029, marking a 50% increase, Mitch Bittermann, senior vice president of commercials at Dubai CommerCity, said Thursday.

Speaking to Anadolu on the sidelines of the WORLDEF Dubai e-commerce forum, Bittermann highlighted the advanced free zone facilities provided by Dubai CommerCity, which go beyond traditional services to offer companies comprehensive support.

"We are also an ecosystem. We are focusing on digital commerce, which basically means tenants who are coming in, they're not just getting a lease and a license, but they get so much more. They need to open a bank account. They need to do fulfillment. They need to find potential clients, and this is how we're going to help them. We are building this ecosystem where we connect all of our tenants together in order to grow for the future," he said.

- E-commerce growth in UAE

Bittermann noted the rapid growth of the e-commerce sector in the UAE.

"So first of all, if you think about digital commerce or e-commerce here in the region alone, the UAE today in 2024, we will reach $7 billion in total volume this year. By 2029, this value will become $11.5 billion, so that means it's a 50% increase for the next five years to get from where we are right now. So that is a massive opportunity for all of us to focus on e-commerce,” he said.

Dubai CommerCity’s support enables e-commerce companies to take full advantage of this growth, he said.

He said the company’s goal is to contribute to the UAE's economic diversification and enhance its global competitiveness in digital commerce.

Emphasizing the role of technology, Bittermann explained that Dubai CommerCity integrates cutting-edge solutions, including blockchain solutions, the Internet of Things (IoT) and artificial intelligence (AI), to lead the e-commerce industry.

One such innovation is a blockchain-based solution integrated with Dubai Customs, he said.

"So that means any order which comes into the free zone, any order which goes out automatically, the information will be sent to Dubai Customs. Up to now, we have Puma, we have Birkenstock, we have the luxury closets. We're shipping out of Dubai CommerCity into more than 80 countries worldwide," he added.

- ‘Multi-Channel Inventory System’ to be launched

Bittermann also announced the launch of a new multi-channel inventory system during WORLDEF Dubai, which allows e-commerce businesses to manage all sales channels from a single platform.

"This system consolidates data from various sales platforms—be it brand websites, marketplaces, social commerce platforms or physical stores—into one program," he said.

"You can actually see orders from all the different marketplaces -- be it brand.com, be it marketplace, be it social commerce, be it the retail store. All this information will be put into one program, and you have basically just one overview where you can see what are sales, how are the sales tracking, what are your conversion rates per channel, what's the average order value, what's the sales you're achieving by the end of the day.”

Bittermann concluded by emphasizing Dubai b ambition to become a global hub for digital commerce.

"All of this is part of the journey where we are getting involved and where we are helping companies to come here, attract foreign direct investment and then help them to take off from the UAE," he said.

He said WORLDEF Dubai serves as a prime opportunity to showcase these advancements and bolster the e-commerce sector both regionally and globally.