AI, social media reshape UAE online shopping landscape

Khaleej Times

10 hours ago

Artificial intelligence and social media are reshaping the online shopping landscape in the UAE, as consumer habits shift rapidly toward mobile-first, app-driven, and highly personalised e-commerce experiences.
According to DHL's E-Commerce Trends Report 2025, nearly all UAE consumers —96 per cent — expect to shop primarily through social media platforms by 2030, bypassing traditional websites entirely. This transformation is driven by the convergence of digital convenience, AI-powered tools, and a new generation of shoppers whose buying behavior is deeply influenced by real-time trends and immersive content.
The report, which surveyed 24,000 online consumers across 24 countries, highlights how social commerce has become mainstream in the UAE, with 86 per cent of shoppers having already made purchases directly through apps like TikTok, Instagram, and Facebook. The findings suggest a growing preference for in-app purchasing journeys, with 69 per cent of consumers buying through Facebook and 68 per cent via Instagram. These platforms now serve as both discovery engines and transaction hubs — making them central to any retail strategy aiming to stay relevant in the region's rapidly evolving digital marketplace.
'The UAE consumer is among the most tech-savvy and socially connected globally,' said Samer Kaissi, CEO of Gulf Cluster and UAE country manager at DHL Global Forwarding. 'Our research shows a clear shift toward smart, frictionless shopping powered by AI and delivered through trusted social ecosystems. Brands that fail to adapt will risk being left behind.'
One of the strongest signals from the report is the consumer demand for intelligent shopping tools. Nearly 89 per cent of respondents in the UAE expressed a strong preference for AI-driven features such as virtual try-ons, voice-activated search, and smart recommendations that match individual needs and behavior. Voice commerce, in particular, is gaining momentum, with 59 per cent of users already making purchases through voice commands — a trend that reflects increasing comfort with hands-free, mobile-based interactions.
These expectations are reshaping the way retailers approach customer engagement. The focus is shifting from just product availability and pricing to immersive and personalized experiences that start on social feeds and end with in-app transactions. According to global research by PwC, 73 per cent of consumers now expect brands to understand their individual needs and deliver tailored content — a standard that AI systems are uniquely positioned to meet by analysing behavior patterns, sentiment, and context in real time.
But the shift to AI-powered, socially driven shopping also comes with new challenges. Delivery remains a key friction point: 84 per cent of UAE consumers say they will abandon their online carts if their preferred delivery option isn't available. In addition, 85 per cent report they will not complete a purchase if the return process is not convenient or reliable. Trust in logistics has become critical, with 67 per cent of respondents stating they avoid buying from sellers who partner with delivery providers they don't trust.
Sustainability is another rising priority in the UAE's e-commerce ecosystem. DHL's report reveals that 82 per cent of shoppers now consider sustainability in their purchase decisions, and 42 per cent have abandoned their carts due to environmental concerns. Retailers are being called upon not just to reduce their operational footprint, but to actively empower customers to shop more sustainably — including offering recycling schemes, buy-back programs, and carbon-neutral shipping options. Encouragingly, 68 per cent of UAE consumers indicated a willingness to participate in such initiatives if made available by brands.
Industry experts say this convergence of AI, social commerce, and sustainability is not just a passing trend but a long-term shift that will define the future of retail. According to a recent McKinsey report, the global social commerce market is projected to grow three times faster than traditional e-commerce over the next five years, with the Middle East and Asia leading the charge due to high smartphone penetration and youthful demographics.
In the UAE, the shift is also being accelerated by government-led digital transformation initiatives and the presence of a mobile-native population that embraces innovation. Retailers who embed AI-driven personalisation, seamless in-app purchases, and sustainable practices into their digital channels are more likely to win consumer trust and drive long-term loyalty.
The evolving online shopping journey in the UAE illustrates how technology is blurring the lines between content, commerce, and community. AI is not replacing the human touch but enhancing it — offering smart solutions to long-standing consumer pain points such as decision fatigue, lack of fit assurance, and delayed fulfillment. From virtual AI twins that help users try on clothing to agentic checkout systems that anticipate preferred payment methods, the future of shopping is intelligent, responsive, and highly social.
As the 2025 digital economy gains momentum, the message from UAE consumers is clear: they expect online shopping to be fast, personalised, and planet-friendly — and they're increasingly turning to AI and social media to make it happen. 'Retailers that meet these demands will not only thrive in this competitive environment but help shape the next chapter of digital commerce in the region,' industry experts said.