In recent years, the e-commerce landscape in the United Arab Emirates (UAE) has evolved with remarkable momentum. This transformation is powered by the nation’s high internet penetration, a young and tech-savvy population and an affinity for digital shopping that continues to grow. According to Statista, the UAE market for e-commerce is expected to expand by over USD 10 billion between 2020 and 2025, making it an opportune time for entrepreneurs to start a company in the UAE. The benefits of starting an e-commerce business here are notable, with well-defined consumer preferences across various sectors, including the lifestyle and personal care market. Here, we’ll explore five best e-commerce businesses in the UAE that offer significant market potential.
According to ECDB, the UAE’s Hobby & Leisure e-commerce market is predicted to reach USD 573.0 million by 2024, establishing it as one of the best e-commerce businesses to start in the UAE with notable potential. This category, which accounts for 8.5% of the total e-commerce market in the UAE, includes products like craft supplies, model kits, board games and outdoor equipment. With rising consumer interest in hobbies and leisure, this market is projected to grow at a 0.9% CAGR from 2024 to 2028. An e-commerce business in the UAE market can thrive by offering a curated selection of products that cater to various interests, from DIY kits to outdoor adventure gear. In the lifestyle market in the UAE, the growing trend of personalization, where customers can choose or customise their hobby kits, is a valuable strategy.
The UAE fashion e-commerce market is predicted to reach a substantial USD 2,054.7 million by 2024, accounting for 30.6% of the total e-commerce market. The market is expected to grow even further, with a compound annual growth rate (CAGR) of 7.3% between 2024 and 2028, resulting in a projected market volume of USD 2,719.6 million by 2028. For entrepreneurs aiming to start a company in the UAE, fashion e-commerce presents significant opportunities, positioning it as one of the UAE market’s most promising sectors. Within the fashion market, apparel, footwear, bags and accessories are seeing significant demand. With the UAE’s diverse and style-conscious population, e-commerce businesses can thrive by offering a range of products that appeal to different tastes, from luxury brands to contemporary, modest and streetwear styles. Personalisation, exclusive collections and sustainable fashion options can attract a loyal customer base.
The UAE’s electronics e-commerce market is projected to reach USD 2,266 million by 2024, accounting for 33.7% of the total e-commerce market. This sector is expected to continue its growth, with a compound annual growth rate (CAGR) of 7.6% from 2024 to 2028, leading to a projected market volume of USD 3,033.3 million by 2028. With high demand for products like smartphones, laptops, smart home devices, and kitchen appliances, e-commerce businesses can capitalise on competitive pricing and a diverse product range. Offering value-added services such as tech support, extended warranties, and convenient delivery can help build customer loyalty.
The UAE food e-commerce market is rapidly expanding and is expected to reach USD 1,072.5 million by 2024, accounting for 16% of the total e-commerce market. This sector is set for strong growth, with a projected CAGR of 20.5% from 2024 to 2028, reaching a market volume of USD 2,263.6 million by 2028. For entrepreneurs, the food e-commerce market offers vast opportunities, particularly in niche areas such as organic, gourmet or health-conscious products. Focusing on convenience-oriented services, such as ready-to-eat meals, can help e-commerce businesses capitalise on the UAE market’s growing demand for time-saving food solutions.
The UAE's furniture and homeware e-commerce market is set to reach USD 249.6 million by 2024, representing 3.7% of the total e-commerce market in the UAE. While the sector is expected to grow steadily, with a compound annual growth rate (CAGR) of 1.7% over the next four years, it will still see a projected market volume of USD 266.7 million by 2028. Entrepreneurs looking to start an e-commerce company in the UAE can focus on high-quality, bespoke furniture that caters to modern aesthetics or specialise in unique home decor items, such as lighting, soft furnishings and kitchenware. With sustainability a priority for consumers, focusing on eco-friendly materials and design offers businesses a competitive edge.
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