UAE Shoppers Go Digital-First as E-Commerce Reshapes Retail

UAE shoppers are rapidly moving online to groceries, electronics and daily essentials, while AI, social commerce and digital payments are reshaping product discovery, comparison and purchasing decisions.
UAE Shoppers Go Digital-First as E-Commerce Reshapes Retail
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Reviewed By:
Ankitha Phulare
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UAE consumers are increasingly moving their shopping journeys online. From Fast-Moving Consumer Goods (FMCG) and groceries to technology and durable products, the shift is strengthening e-commerce’s role in the country’s retail market. This comes as consumers seek convenience, competitive prices, and faster purchasing experiences.

Recent NielsenIQ data shows the UAE FMCG market grew 5.4% in the second quarter of 2026. E-commerce and traditional trade were among the key contributors. However,  modern trade remained relatively stable.

E-commerce Gains Ground

E-commerce is becoming increasingly relevant in the case of regular purchasing. According to the most recent data provided by NielsenIQ, e-commerce was responsible for 13% of UAE FMCG sales and more than 30% of revenues from technology and durable goods.

Such development is associated with changes in consumer behavior. In particular, consumers no longer consider the Internet to be a separate channel of purchasing. People start switching channels in accordance with prices, availability, convenience and other characteristics of the purchased products.

For retailers, this makes an omnichannel strategy increasingly important. Brands need to offer consistent pricing, product information and service across websites, apps and physical outlets.

AI Enters the Shopping Industry

Artificial intelligence is also becoming a regular part of the purchasing process. A Visa study found that 85% of UAE consumers have used AI tools to assist with shopping. Consumers use these tools to check product reviews, compare prices and find gift ideas.

The technology is also improving product discovery. Around 60% of respondents said they discover new brands or retailers while shopping online. Moreover, 93% said new technologies, including AI-powered tools, make online shopping faster and easier.

However, consumers remain cautious about giving AI complete control over purchases. Only 32% said they would trust AI agents to complete checkout independently. 

Also Read: How Will AI Assistants Become Workplace Partners

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