The UAE enters 2026 with a clear structural shift in consumption behavior, reinforcing its lead as MENA's most mature e-commerce market, projected to reach $21.01 billion by 2031 as penetration may climb from 15% to 25%.
The annual e-commerce report by Flowwow, a UAE-based gifting marketplace, and Admitad, an international performance marketing company, reveals the UAE’s transition towards a value-driven economy: AOV reached $112 (double the MENA average, +9.8% YoY), while GMV grew 25% and order volume 17% YoY. UAE’s emerging ‘worth seeker’ consumers prioritise strategic spending, brand trust, and seamless experience as key considerations.
The report data, based on over 7 million online transactions across MENA in 2025, shows that the UAE e-commerce growth is driven by depth, not frequency. GMV (+25%) outpacing transaction volume growth (+17%) suggests that consumers are making fewer, but heavier and more intentional purchases. Spending power indicates the same trend and further sets the UAE e-commerce apart across MENA: AOV reached $112 (+10% YoY), more than twice the regional average ($48).
Shift in consumer behaviour indicates that UAE e-commerce acceleration is no longer driven by infrastructure expansion and customer acquisition alone. Over 90% mobile adoption with almost 65% of the population under 35, first-class digital infrastructure, and government strategic initiatives not only accelerate the growth, but they have also created more mature and increasingly selective shoppers.
This digital maturity empowers consumers to shop more deliberately: compare offers across platforms, weigh multiple factors, and seek the best value for their spend – not just the lowest cost. In the UAE market, with high expectations of an excellent online experience, this is a natural evolution.
Marketplace Dominance and Mobile-First Behaviour
With effortless access to alternatives, shoppers can easily compare offers and weigh the value of a purchase. According to Admitad’s data, marketplaces accounted for 75% of online purchases, while the share of mobile purchases increased from 44% to 50% in 2025.
Internal country dynamics reflect balanced and decentralised e-commerce development across the UAE. While Dubai remains a key hub, Abu Dhabi outperformed as the fastest-growing city, with more impressive growth and stronger purchasing intent. The report data shows that online orders grew by 21% in Abu Dhabi compared to 17% in Dubai in 2025, while GMV increased by 27% versus 20%, respectively. AOV reached $115 in Abu Dhabi vs $113 in Dubai.
The broader MENA e-commerce market, projected to reach $338 billion by 2031, expanded 25% in GMV in 2025, a 14% rise in order volume, and AOV jumped from $36 to $48, as mobile purchases grew from 40% to 48% of total sales.
Anna Gidirim, CEO of Admitad, commented:
“We expect e-commerce growth in MENA to remain strong in 2026, with orders increasing by 15-16% and GMV increasing by 25-27%. Ramadan and November-December, which host the largest sales, will once again be the busiest months. Eid al-Adha and the period from late August to mid-September will also be key drivers for businesses.”
The Calendar Economy in the UAE — Three Months Make the Year
The report shows that the value-driven mindset is visible in seasonal purchasing patterns. Peaks of consumer activity are concentrated in November (+40%), December (+31%), and March (+15%) — months coincide with Black Friday & Cyber Monday, the festive season, and Ramadan, respectively, with the highest mass retail promo and strongest cultural motivation. Consumers are planning purchases around key calendar moments to maximize value.
Compared to overall MENA activity, UAE сustomers paid more attention to car-related products and fashion categories with AOV $210 and $85, respectively. While these segments reflect orientation on practical value, they are also well-penetrated and largely transactional. For the UAE market, it means that further growth will come from underpenetrated categories with strong value propositions.
Slava Bogan, CEO of Flowwow, comments:
“While UAE e-commerce continues to experience exceptional growth, its nature is changing. The market is moving beyond infrastructural expansion toward growth driven by customers. Shoppers have matured, set their expectations, and aren't lowering them.
In this fast-changing e-commerce environment, growth belongs to businesses that can meet this shift, combining a tech-savvy approach and additional value like brand authenticity and emotional relevance behind every product. For local SMEs, this creates a unique opportunity to compete not on price alone, but on trust and differentiated value, scaling sustainably alongside the market.”
Online Gifting in the UAE: Niche Segments Growing 3x Faster than the Market
Fueled by overall e-commerce growth, digital maturity, and a shift toward a value-driven economy, the online gifting sector in the UAE witnessed a significant surge last year. Flowwow almost doubled GMV to $3.32 million (+94.6%) and order volume to 41,538 (+89.4%), three times outpacing UAE e-commerce growth as one of the fastest growing segments.
The number of customers rose to 25,182 (+88.4%), with an AOV of 294 AED ($80). Critically, 61.3% of orders came from returning customers — a strong indicator of trust in a category where reliability and emotional relevance define the experience.
The highest demand peaks by GMV growth (February +18.6%, March +17%, December +16.2%) align with promotional incentives and deep cultural relevance in the UAE, with over 200 nationalities and a rich gift-giving culture beyond the calendar occasions.
Despite a strong correlation between demand and seasonal occasions, the niche marketplace notes consistent year-round 11% average growth outside the peak months.
“While Valentine's Day remains our biggest peak, we're seeing how people in the UAE are moving beyond 'occasion-only' gifting. They're choosing gifts as a joy and mark everyday moments like surprising a friend who had a tough week.
Such everyday emotional commerce is what makes the UAE market so dynamic. For local florists and confectioners, it means more stable revenue streams and less dependence on a few major holidays. With the UAE gifting market projected to hit $6.38 billion by 2030, we're seeing the entire culture of gifting evolve.”
says Slava Bogdan, CEO and co-founder of Flowwow.
The platform's local sellers network grew by 66.5% to 398 businesses, driven by regional expansion in the UAE as Flowwow’s strategic priority and the development of the local sellers community to strengthen its growth on the platform.
While Dubai remains the largest market by volume, its growth rate now trails emerging regional cities beyond main hubs: Sharjah +255.3% (AED 202), Ajman +164.8% (AED 220), Abu Dhabi: +147% (AED 253), Dubai: +87.8 (AED 296). Such growth highlights untapped potential and rising consumer confidence in online gifting across the entire country.
Among core categories, flowers remain the dominant as the most in-demand with +65.5% growth, while the fastest growth is in emerging strategic categories that extend gifting into lifestyle and personal expression — Beauty (+149.5%), Sweets & Treats (+105.7%), Home & Garden (+111.8%), Gifts (+66.4%).
In the UAE, the most popular product formats reflect preference for unique, artisan-made products that stand out from mass-market offerings: Delicious sets (+334%), Edible bouquets (+287%), Artisan bouquets (+227%), Mono bouquets (+207%), Confectionery (+195%).
In 2026, Flowwow is preparing for a new phase of growth in the UAE market, aiming to contribute to the local economy with $6.5M in GMV and ensure further geographic expansion within the country. The niche gifting marketplace also plans to extend its seller base by launching new premium categories: confectionery, chocolate, perfumes, and curated bundles.
The platform will offer new opportunities for consumers as well, expanding into corporate gifting, launching a loyalty program, and introducing gamification elements to deepen user engagement.
News Source: Flowwow
