UAE Dropshipping Market Expanding at a CAGR of 7.74% during 2025-2030

2024: Zid integrates with Amazon so that merchants can easily launch their stores on Amazon Marketplace through Zid and reach new Amazon customers. This also enhances cross-border sales between Saudi Arabia and the UAE.

According to MarkNtel Advisors study, The UAE Dropshipping Market size was valued at around USD 1,691.54 million in 2025 and is projected to reach USD 2,751.16 million by 2030. Along with this, the market is estimated to grow at a CAGR of around 7.74% during the forecast period, i.e., 2025-30.

Dropshipping companies are increasing their focus on payment options to ensure secure payments from customers and safeguard them from online frauds that are made about online payments. As per a LexisNexis study in 2025, the rate of online scams increases by 42% year-on-year in the UAE. To address this problem, various Dropshipping companies in the UAE such as AliExpress, Amazon, etc., are providing multiple payment options that are safe and verified like PayPal, Google Pay, bank transfer, debit card, Qiwi Wallet, etc. Such methods win the trust of customers.

Moreover, various drop shippers are providing their customers with buyer protection programs that return money to the customer if the product quality is mismatched. Such programs make it clear to customers that the website is not a fraud, thus further gaining their trust. Therefore, to ensure safe and secure transactions, the Dropshipping market is providing their customers with verified payment sources that win the trust of buyers and have a positive impact on the market by attracting more buyers.          

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Market Growth Driver: Online shopping platforms are experiencing high growth as customers get access to a wide variety of products in their niche categories at one stop. Dropshipping companies collaborate with various suppliers and local manufacturers to market their products on online platforms as this helps suppliers in increasing their sales. This aligns with the growing trend of online shopping. As a result, the drop shippers can provide their customers with a wide variety of products and gain profit. For instance, as per Sharaf DG, a UAE-based e-commerce website, over 1 million users visit their website every month to make purchases. Moreover, as per the Dubai Chamber of Commerce & Industry, the UAE is expected to generate about USD8 billion annually from sales in e-commerce by 2025 as 100% of its population have access to mobile phones and internet. Therefore, with the rising e-commerce, the Dropshipping market gets a push toward growth and this trend is expected to continue in the forecast period as well.

UAE Dropshipping Market Key Players:

Amazon, Noon, Desert Cart, AliExpress, Tradeling, Sharaf DG, Zid, HyperMart, The Toy Store, Cartlow, and Others

Market Segmentation Overview:

By Product Type

-Electronics

-Toys

-Furniture

-Healthcare

-Fashion

-DIY

-Personal Care

-Household and Kitchen Care

-Food

-Others

By Destination

-Domestic

-International

Based on the destination, the domestic products hold the largest market share around 77% because the domestic products financially benefit the Dropshipping companies by avoiding customs charges, freight charges, import permit fees, etc. Additionally, supplying domestic products helps in reducing delivery time. Moreover, if a customer makes an order for more than one product, it would be very difficult to deliver the products on time if any of those products were supplied by a supplier from a market outside of the UAE such as India, China, etc. Therefore, due to the cost-efficiency provided by Dropshipping domestic products, many companies prefer to deal in them, thus augmenting the revenue growth of this segment.

By Organization Size

-Small and Medium Enterprises

-Large Enterprises  

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By Region

·        Dubai

·        Abu Dhabi & Al Ain

·        Sharjah & Northern Emirates

The UAE Dropshipping Market Recent Development

2024: Noon partnerships with Adyen, a global leader in financial technology. The integration aimed to enhance the payment solutions for merchants and customers alike in the UAE thus providing seamless and secure payment experiences.  

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