UAE e-commerce market forecast to reach $9.2bn by 2026

"Among the main product categories offering the most untapped potential in the e-commerce market in 2022 are apparel and footwear, personal accessories, beauty and personal care, and home and gardening," the report said.

More than one third of consumers in the UAE bought a product or service using their smartphone at least once a week, which is above the global average of weekly online purchases, the study said.

The mobile retail market reached $2.6bn last year, accounting for 44 percent of the total e-commerce market value. It is further expected to record a compound annual growth rate of 15.6 per cent over the 2022-2026 period to reach $4.6bn, the report said.

In the UAE, the growing number of loyalty rewards programmes offered by online retailers also drove up demand for online shopping.

Shoppers based in the UAE preferred local retail websites to overseas retailers, with domestic e-commerce websites accounting for 73 per cent of total sales. "The increasing momentum of e-commerce activity in the country is expected to provide more business opportunities in payment systems, financial technology, electronic logistics and distribution centres," Dubai Chamber said.