Drones and AI to accelerate the UAE’s $17 billion e-commerce market

The United Arab Emirates’ rapidly expanding e-commerce sector, projected to reach $17 billion by 2025, is embracing cutting-edge technological solutions to revolutionize last-mile delivery systems. Industry leaders are increasingly turning to AI-powered drones and unmanned aerial systems (UAS) to meet growing consumer expectations for speed and convenience.

According to market intelligence from Statista, the UAE’s successful economic diversification efforts have created a robust ecosystem conducive to digital innovation. The country’s exceptionally high social media penetration rate, with approximately 11.03 million active users forecasted by 2026, has further accelerated e-commerce adoption.

Blue Ocean Global Group, through its subsidiary Blue Infinity LLC, is pioneering this transformation by providing comprehensive distribution services for both global and regional FMCG brands. Under the guidance of industry veterans Shahzad Ahmed and Ravi Narayan, the company has developed a data-driven approach that analyzes consumer behavior patterns to optimize inventory management and delivery efficiency.

Global projections from PriceWaterhouseCoopers indicate dramatic growth in drone-assisted deliveries, expected to surge from 5 million in 2024 to 808 million within the next decade. The economics of drone delivery are becoming increasingly favorable, with current costs of $6-$25 per delivery anticipated to drop by over 70% in the coming years, potentially falling to around $2 by 2034.

This technological shift is particularly significant for the MENA region, where Saudi Arabia’s e-commerce market is similarly booming—valued at $27 billion in 2024 and projected to exceed $50 billion by 2030. Millennials and Generation Z consumers, driven by digital-native lifestyles and seamless payment systems, are increasingly preferring online shopping for its convenience and efficiency.

Seasonal shopping events including White Friday, Yellow Friday, Singles’ Day, and traditional holiday periods create additional opportunities for brands to implement innovative promotional strategies and bulk deals. Blue Infinity’s approach emphasizes rapid market execution, adaptive pricing strategies, and enhanced product visibility across both traditional e-commerce and quick-commerce (q-commerce) platforms.

The convergence of AI analytics with advanced delivery systems represents a fundamental shift in regional retail dynamics, potentially serving 67% of the global population according to PwC estimates. This transformation promises to bridge accessibility gaps particularly for suburban and rural residents while creating new paradigms in customer satisfaction and operational efficiency.