1. Market growth and potential

The Middle East e-commerce market is witnessing explosive growth, with the UAE expecting e-commerce to reach $17 billion in 2025, at a CAGR of 6.54%.7 Consumer behavior is accelerating its migration to online, with the prevalence rate of the “buy now, pay later” (BNPL) payment method exceeding 90%, which is further stimulating consumer demand Meanwhile, Dubai, with its regional hub status, it has become the core node of cross-border e-commerce in the Middle East. 2025 will host the Middle East Africa India cross-border e-commerce exhibition (September 4-6), attracting global merchants to layout the emerging markets

2. Core Driving Force: Policy and Technology

Policy support: the UAE government promotes logistics innovation, such as Dubai Customs using blockchain technology to optimize supply chain transparency and improve cross-border trade efficiency7

Technology empowerment: AI and big data are widely used in product selection, customer service, marketing, etc., and head enterprises use smart tools to reduce costs and increase conversion rates.

3. Competitive Focus: Localization and Branding

Competition in the Middle East market is intensifying, platforms such as Amazon, Shein, Temu, etc. are accelerating penetration, but localized operation becomes the key to breakthrough. Example:

Social media marketing: Instagram, TikTok and other platforms are attracting young consumers through netizen cooperation and precise hashtags.

Brand building: Chinese companies such as Mechatronics have strengthened their brand image through an omni-channel layout, shifting from “selling goods” to “brand exporting”.

4. Challenges and Strategies

Logistics and Compliance: The Middle East region has changing tariff policies (e.g., the European Union eliminated tax exemptions for low-value goods), so it is important to pay attention to local regulations and supply chain resilience.

Payment and trust: Optimizing local payment methods (e.g. COD cash on delivery) and accumulating product reviews to enhance consumer trust.

5. Future Outlook

The Middle East e-commerce market will continue to benefit from the demographic dividend (high percentage of young population) and the trend of consumption upgrading, and is expected to maintain steady growth through 2028. Companies need to combine AI-driven, deep localization and green sustainable strategies (e.g., eco-friendly packaging) to seize the opportunity.