United Arab Emirates Social Commerce Market Report Size Share Growth Drivers Trends Opportunities & Forecast 2025–2030

United Arab Emirates Social Commerce Market Overview

• The United Arab Emirates Social Commerce Market is valued at USD 3.2 billion, based on a five-year historical analysis. This growth is primarily driven by the increasing penetration of social media platforms, the rise of mobile commerce, and changing consumer behaviors that favor online shopping experiences. The market has seen a significant shift towards integrating social media with e-commerce, including in-app shopping, shoppable posts, and live-commerce formats, allowing brands and influencers to engage directly with consumers and convert social interactions into transactions.
• Dubai and Abu Dhabi are the dominant cities in the UAE's social commerce landscape, attributed to their high internet penetration rates, affluent populations, and a strong culture of online shopping. These cities serve as hubs for both local and international brands, leveraging platforms such as Instagram, TikTok, Snapchat, and WhatsApp for social selling to reach a tech-savvy consumer base that values convenience, personalization, and omnichannel shopping experiences.
• In 2023, the UAE government implemented regulations to enhance consumer protection in e-commerce, mandating that all online retailers must provide clear information regarding product pricing, delivery times, and return policies. This initiative is aligned with Federal Decree-Law No. 5 of 2020 on Consumer Protection and its implementing regulations issued by the Ministry of Economy, which set obligations on digital and e-commerce suppliers to disclose total prices, contract terms, guarantees, and after-sales service conditions to consumers. These measures aim to build consumer trust and promote a safer online shopping environment, thereby encouraging more users to engage in social commerce.

United Arab Emirates Social Commerce Market Segmentation

By Business Model:

The business model segmentation of the United Arab Emirates Social Commerce Market includes various subsegments such as Business-to-Consumer (B2C), Consumer-to-Consumer (C2C), Business-to-Business (B2B) Social Commerce, Direct-to-Consumer (D2C) via Social Platforms, and Cross-Border Social Commerce. Among these, the B2C model is the most dominant, driven by the increasing number of consumers shopping online through social media platforms and integrated storefronts on major marketplaces. The convenience of purchasing directly from social media ads, live streams, creator storefronts, and influencer recommendations has significantly influenced consumer behavior, leading to a surge in B2C transactions as brands use social channels as primary sales and discovery tools.

By Product Category:

The product category segmentation encompasses Fashion & Apparel, Beauty & Personal Care, Consumer Electronics & Gadgets, Grocery, Food & Beverage, Home, Lifestyle & Furnishing, Luxury Goods & Accessories, and Others. The Fashion & Apparel segment leads the market, reflecting the strong role of social platforms in product discovery, outfit inspiration, and brand storytelling for clothing, footwear, and accessories. The segment is fueled by the growing trend of online shopping, the influence of regional and global influencers, and the use of visual and short-form video content, which encourage consumers to browse and purchase fashion items directly through shoppable posts, live sessions, and creator-led campaigns on social media platforms.

United Arab Emirates Social Commerce Market Competitive Landscape

The United Arab Emirates Social Commerce Market is characterized by a dynamic mix of regional and international players. Leading participants such as Amazon.ae, Noon, Namshi, Ounass, Carrefour UAE, Dubizzle, Talabat UAE, Deliveroo UAE, InstaShop, Mumzworld, Sharaf DG Online, Al-Futtaim Group, Landmark Group, Chalhoub Group, Al Tayer Group contribute to innovation, geographic expansion, and service delivery in this space.

United Arab Emirates Social Commerce Market Industry Analysis

Growth Drivers

• Increasing Smartphone Penetration:The UAE boasts a smartphone penetration rate of approximately 99%, with over 10 million smartphone users as of future. This high penetration facilitates seamless access to social commerce platforms, enabling consumers to shop directly through social media apps. The World Bank reports that the UAE's digital economy is projected to contribute around $30 billion to the GDP in future, further driving the growth of social commerce as mobile shopping becomes increasingly prevalent.
• Rise of Influencer Marketing:The influencer marketing industry in the UAE is valued at around $1.3 billion in future, reflecting a significant increase in brand collaborations with social media influencers. This trend is fueled by the fact that 75% of consumers in the UAE trust influencer recommendations, according to a recent survey by Statista. As brands leverage influencers to promote products, social commerce is expected to thrive, creating a direct link between social media engagement and purchasing behavior.
• Growth of E-commerce Platforms:The UAE's e-commerce market is projected to reach $30 billion in future, driven by a surge in online shopping activities. The rise of platforms like Noon and Amazon.ae has made it easier for consumers to access a wide range of products. According to the Dubai Chamber of Commerce, e-commerce sales in the UAE are expected to grow by 25% annually, providing a robust foundation for social commerce to flourish as consumers increasingly prefer online shopping experiences.

Market Challenges

• Regulatory Compliance Issues:The UAE's regulatory landscape for e-commerce is evolving, with new laws being introduced to ensure consumer protection and fair trade practices. However, businesses face challenges in navigating these regulations, which can lead to compliance costs estimated at around $600 million annually for the sector. This complexity can deter smaller players from entering the social commerce market, limiting competition and innovation.
• Data Privacy Concerns:With the implementation of stringent data protection regulations, such as the UAE Data Protection Law, businesses must invest significantly in compliance measures. A report by PwC indicates that 65% of consumers in the UAE are concerned about how their data is used online. This skepticism can hinder the growth of social commerce, as consumers may be reluctant to share personal information necessary for transactions, impacting overall sales.

United Arab Emirates Social Commerce Market Future Outlook

The future of social commerce in the UAE appears promising, driven by technological advancements and changing consumer behaviors. As more brands adopt innovative marketing strategies, including augmented reality and personalized shopping experiences, the sector is likely to witness significant growth. Additionally, the increasing integration of payment solutions will enhance consumer confidence, making online transactions more secure and convenient. Overall, the social commerce landscape is set to evolve, aligning with global trends while catering to local preferences.

Market Opportunities

• Expansion of Payment Solutions:The introduction of diverse payment options, including digital wallets and buy-now-pay-later services, presents a significant opportunity for social commerce. With over 70% of consumers in the UAE preferring cashless transactions, businesses can enhance customer experience and drive sales by integrating these solutions into their social commerce platforms.
• Integration of AR/VR in Shopping:The adoption of augmented reality (AR) and virtual reality (VR) technologies in social commerce can revolutionize the shopping experience. As the UAE invests in smart city initiatives, brands can leverage AR/VR to create immersive shopping experiences, allowing consumers to visualize products in their environment, thereby increasing engagement and conversion rates.