The e-commerce market in the United Arab Emirates (UAE) continued to show growth in the first half of 2026, while online retail in the broader Persian Gulf region contracted. This indicates a shift in consumer behavior towards more considered and higher-value digital spending.
A study conducted by Udora, an UAE-based gift marketplace, and Admitad, which uses data from over 2.5 million online orders across the Gulf Cooperation Council (GCC) countries, showed that online shopping is deeply integrated into the daily lives of UAE residents, especially for home and lifestyle purchases. The Gross Merchandise Value (GMV) in the UAE increased by 2% year-on-year in the first six months, whereas the e-commerce GMV in GCC countries decreased by 9% over the same period.
Although the total number of orders in the UAE decreased by 9%, buyers began spending more per transaction, raising the average order value from $97 to $111 USD.
Categories related to daily consumption showed the largest growth: home goods rose by 18%, food and delivery services by 15%, and sports and entertainment products by 11%. Fashion remained the largest category in online retail, accounting for 20.6% of all purchases, followed by home goods, automotive items, and electronics.
Mobile shopping played a key role in the market's resilience. The number of orders placed via smartphones increased by 20.5% year-on-year, bringing the share of mobile purchases in total online transactions to 53%. This trend reflects consumers' increasing reliance on digital platforms for routine acquisitions, supported by expanding delivery services, the adoption of cashless payments, and the proliferation of super-apps.
The study results also indicate that consumers are becoming more selective rather than simply spending less. Promotions and discounts remain important, but they are increasingly used as a tool for purchase planning rather than stimulating impulse buying. More than half of all online transactions utilized coupons or promo codes, with the average discounted order value rising from $89 to $122 USD year-on-year. Among the categories that benefited most from promotions were electronics, fashion, and automotive goods.
Anna Ghidirim, CEO of Admitad, noted: 'Consumers today are becoming much more selective about when and where they spend their money.'
She added that the data shows they are not abandoning online shopping, but instead making larger and more deliberate purchases, continuing to rely on digital channels as part of their lifestyle.
Furthermore, the report revealed that buyers are increasingly making decisions influenced by online content and recommendations before completing a purchase. Approximately 15% of consumers relied on media and content websites for purchasing decisions, while 13% were influenced by social media content.
Stock market indices Sensex and Nifty opened in the red on Wednesday. The decline was triggered by renewed threats of tariffs on the pharmaceutical sector from US President Trump, as well as a sharp rise in oil prices amid escalating geopolitical tensions in the West Asia region.
The BSE Sensex index began the trading session with a drop of nearly 388 points, representing 0.50 percent from a level of 77,081. The index reached a low of 76,722.21, losing 748 points or 0.96 percent. Similarly, the Nifty 50 index fell by 90 points or 0.37 percent, opening at 24,097. This index, comprising 50 stocks, showed a minimum of 23,973.70, dropping by 214 points or 0.88 percent.
By 10:50 AM, both key indices were trading close to their daily lows: Sensex showed 76,832.77, indicating a decrease of 637 points or 0.82 percent, while Nifty was at 24,009.30, down 178 points or 0.74 percent.
At the sectoral level, the Nifty Pharma and Realty indices declined by more than 1.5 percent each. Declines were also observed in the Nifty PSU Bank, Financial Services, IT, Metal, and Oil & Gas indices. The only exception was Nifty Auto, which demonstrated a growth of almost 1 percent during the day.
In the broader market context, Nifty Midcap 100 and Nifty Smallcap 100 traded down by 0.65 percent and 1 percent, respectively. Meanwhile, the India VIX index rose to 12.94, increasing by more than 2.5 percent, signaling increased caution and volatility in the near term.
The Nifty Pharma and healthcare indices became the main laggards among the components of Nifty, leading to a nearly one percent drop in the main index. The fall occurred after US President Donald Trump announced a proposal to introduce a phased tariff regime on imported generic drugs aimed at stimulating domestic pharmaceutical production within the United States. The Nifty Pharma index dropped by 1.7 percent, reaching 25,639.70 during intraday trading.
Tushar Manudhane, Senior Vice President of Healthcare Institutional Research at Motilal Oswal Financial Services, noted that '90 percent of prescription generics are imported into the US, which effectively increases the tariff for everyone supplying the US market, and this is not specific to India.'
The rise in oil prices also contributed to the downturn in the domestic stock market. On Wednesday, prices rose by more than 1.57 percent, pushing Brent crude futures above $92.58 per barrel, while WTI crude futures increased by 1.34 percent, trading at $85.68 per barrel.
OMC stocks, representing state-owned oil companies including Bharat Petroleum Corporation, fell by 1.52 percent to 314 rupees per share, Hindustan Petroleum Corporation decreased by 2.13 percent to 398 rupees per share, and Indian Oil Corporation lost 0.77 percent, settling at 142 rupees on Wednesday after Brent crude prices jumped to $92 per barrel.
On Wednesday, the rupee opened weaker against the US dollar. The national currency weakened by 10 paise against the US dollar, reaching 96.34 compared to Tuesday's close at 94.24 per dollar.
Anil Kumar Bhansali, Head of Treasury at Finrex Treasury Advisors LLP, stated that 'traders continue to monitor the participation of the Reserve Bank of India through public sector banks to smooth out volatility. The central bank seems to allow gradual adjustment, preventing erratic movements.'
V. K. Vijayakumar, Chief Investment Strategist at Geojit Investment, believes that the ongoing conflict between the US and Iran and the rise in Brent crude prices will put pressure on markets, despite positive news in other areas. He added that 'market declines create opportunities to buy fundamentally sound stocks. Broader market superiority may continue in the short term.'
Rajesh Palvia, Head of Research at Axis Direct, noted that technically the market continues to trade cautiously below the 24,300 mark. He added: 'Sustainable growth above this level could revive momentum towards 24,500–24,550, while immediate support is at 24,100. A decisive break below this level could trigger further weakness towards 23,950. Any easing in crude oil prices would significantly improve market sentiment and serve as a trigger for a stronger recovery.'
