Home Resources Marketplaces in the United Arab Emirates and Saudi Arabia: What Impact Does Amazon’s Presence in Dubai Have in 2025?

Marketplaces in the United Arab Emirates and Saudi Arabia: What Impact Does Amazon’s Presence in Dubai Have in 2025?

In France, 94 % of households now have internet access, up from 82 % a decade ago. Exactly the same digital shift is visible—only faster—in the Gulf, where almost the entire population is online and shopping habits have moved decisively to marketplaces.

Digital Adoption in the Gulf States

Young, Hyper-Connected Demographics

UAE internet penetration: 99 % (9.46 m users).
Saudi Arabia internet penetration: 99 % (30.8 m users).

Smartphone usage tops 126 % of the population in both countries, and Gen Z and millennials form the majority of active internet users—spending well over three hours a day on social media.

Shifting Shopping Habits

UAE: 6.5 million people bought online in 2024, with e-commerce steadily grabbing share inside the Dh 306 billion retail sector.
Saudi Arabia: E-commerce already represents 29 % of consumer retail payments in 2024 and is forecast to reach 46 % by 2030.

The UAE and Saudi Arabia: Flagship Markets

2024 market size	2025 forecast	2030 forecast	CAGR (2025-30)
UAE: US$10.87 bn	US$12.28 bn	US$21.18 bn	11.5 %
KSA: US$21.3 bn	US$27.96 bn	US$49.49 bn	12.1 %

Souq.com (2005 – 2017)

Amazon entered the region by acquiring regional champion Souq.com for US$580 m in 2017, instantly gaining a multi-country footprint.

Amazon.ae (2019 – present)

Replaced Souq.com in the UAE in 2019.
2024 revenue: US$739.7 m, the largest online store in the UAE.
New Abu Dhabi fulfilment centre (175,000 m²) scheduled to open in 2024, branded the most technologically advanced in MENA.
2023 expansion added 2.1 million ft³ of storage, boosting capacity by 70 %.

Amazon.sa (2020 – present)

Launched mid-2020 and now serves every province through Riyadh-based logistics.
2024 online revenue: US$406.9 m.
390,000 ft² Riyadh fulfilment centre opened in 2023 to accelerate same-day delivery.

Noon and Other Challengers

Noon has positioned itself as the regional champion, ranking #2 in the UAE and #1 in Saudi by web traffic and continuing to sign high-profile partnerships, such as a 2024 MoU with the Saudi Tourism Authority.
Expansion beyond the Gulf: Noon now ships to Egypt, leveraging Pargo’s 7,000 planned pickup points across MENA.
Other key players: CarrefourUAE.com, Namshi.com, Tradeling, and Shein—all thriving in niche verticals and cross-border fashion.

Core Online Spending Segments (2024 snapshot)

United Arab Emirates

Electronics & Appliances: 34.2 %
Fashion & Apparel: 30.9 %
Grocery: 15.3 %
Hobby & Leisure: 8.0 %
Care Products: 4.4 %

Saudi Arabia

Fashion & Apparel: 32 %
Electronics & Media: ~28 %
Home & Furniture: ~14 %
Beauty & Personal Care: ~11 %
Grocery & Foodservice: accelerating fastest post-pandemic

What’s Next for Middle-East Marketplaces?

Higher cross-border share: By 2025, 32 % of UAE online purchases will be made on international sites, creating extra demand for FBA equivalents.
Same-day standard: With Amazon’s and Noon’s mega-centres nearing completion, the race is on to push the standard delivery promise toward four hours in major cities.
AI-powered personalization: Both Amazon and Noon are deploying GPT-based product discovery tools in Arabic and English interfaces.
More regulation: The UAE introduced VAT compliance APIs for marketplaces in late 2024, and Saudi Arabia is piloting mandatory product origin disclosure labels for cross-border sellers.

For brands and sellers, listing on Amazon.ae and Amazon.sa today offers a launch-pad into a 50 million-strong, high-spending, mobile-first consumer base—and the window is wide open before marketplace saturation sets in.