Home-grown brands face uphill battle as overseas players double down on UAE opportunity
AppsFlyer has released the UAE findings of its annual State of eCommerce Mobile Marketing report, revealing how Chinese eCommerce apps continue to dominate user acquisition (UA) spending in one of the world’s leading mobile-first economies. In the first half of 2025, Chinese apps accounted for nearly three quarters (73%) of all UA spend in the UAE. While further behind, France (13%) and India (8%) are also fast emerging as significant challengers, driven by targeted campaigns and potentially expat-focused strategies.
The report highlights the intensifying competition overseas brands pose to local eCommerce retailers, which saw their own UA investments shrink. This likely reflects a mix of budget reallocations, mounting competitive pressure, and market consolidation. However, AppsFlyer experts note that home-grown players still have an opportunity to grow, provided they adopt clearer strategies and embrace performance-driven, localised campaigns.
“Chinese apps have long been seeking growth outside their home market, and with tariffs and global trade headwinds pushing them to diversify, the UAE has been a natural fit given its premium audience and digital maturity,” said Sue Azari, Industry Lead – eCommerce, AppsFlyer. “At the same time, French brands are tapping into premium iOS users here, while Indian advertisers likely see the UAE’s significant South Asian expat base as an affordable, yet highly engaged segment.”
iOS shows breakout growth and lower fraud rates
The report underscores how iOS is entering a breakout phase in the UAE. While by the end of this year, Android app installs are projected to grow 713% since 2017, iOS is surging to over 1383% over the same period, with installs expected to more than double year-on-year in 2025. iOS has also seen a marked improvement in fraud prevention, with fraud rates dropping 63% year-on-year in H1 2025. By contrast Android’s fraud rate jumped 234% in the same period. This suggests iOS is becoming an increasingly attractive, and safer, channel for marketers, even as Android remains critical for scale.
UA spend dips overall despite strong early-year performance
Despite the UAE’s advanced mobile ecosystem, with smartphone penetration at 97% and average daily mobile internet use exceeding four hours, UA ad spending by eCommerce apps declined in H1 2025. Android UA spend fell 21% compared to the same period in 2024, while iOS spending was down just 6%, reflecting its relative resilience. Yet, H1 2025 still delivered the largest half-year remarketing spend to date, with Q1 alone tripling Q1 2024 levels — a clear sign of the impact of seasonal spikes during Ramadan and major retail events.
“Marketers should take note of the pronounced peaks in Q1 tied to Ramadan and plan their upcoming campaigns accordingly, while building in remarketing strategies to sustain engagement beyond holiday periods,” added Azari. “The decline in Android UA spend could also present opportunities for savvy brands to capture lower-cost inventory while still reaching a vast user base.”
With Android remarketing campaigns tripling late last year and iOS installs accelerating, the UAE remains a dynamic and competitive market for mobile commerce. “Advertisers who balance premium iOS strategies with cost-effective Android engagement, and adapt budgets around seasonal patterns, stand the best chance of standing out in a crowded field,” concluded Azari.
