Consumer spending in the UAE reached $3.7 billion during the third quarter of 2024, marking a 4.8% year-on-year increase. This growth was primarily led by sectors such as Fast-Moving Consumer Goods (FMCG), technology, and durable goods.
According to NielsenIQ’s Retail Spend Barometer, UAE shoppers allocated $2.1 billion to FMCG products during Q3, reflecting a 6.4% rise from the same period last year. Technology and durable goods saw a more modest 2.5% growth, contributing $1.5 billion to the quarter’s total spending.
FMCG Sector: A Growth Leader
The FMCG sector experienced significant growth, climbing from 3.2% in Q3 2023 to 6.4% in Q3 2024. Seasonal campaigns like back-to-school promotions bolstered demand, while new communities’ development enhanced the role of convenience retail. Despite a strong start in Q1 2024 with $2.3 billion in sales, the sector witnessed a slight decline, landing at $2.19 billion in Q3.
Technology and Durables: Steady Performance
Tech and durable goods, influenced by consumer electronics innovation, achieved $1.52 billion in sales in Q3. While this sector started strong in Q1 with $1.65 billion in revenue, growth stabilised in subsequent quarters. Seasonal campaigns, including back-to-school promotions and new product launches like the Samsung Galaxy S24, supported sales during Q3.
Digital Shopping Transformation
Digital shopping and quick commerce platforms have reshaped the UAE’s retail market. Younger, tech-savvy consumers and busy professionals are driving demand for online grocery solutions, reflecting a shift in shopping behaviour. Convenience, healthier product preferences, and sustainability are becoming key motivators for shoppers.
David Cantatore, Retail Lead at NIQ Middle East, commented:
“The growth of new communities is fuelling convenience retail, while online grocery shopping is reshaping the landscape, especially among younger and busy professionals. This digital evolution demonstrates the market’s appetite to adapt and thrive in response to changing consumer preferences.”
Sustained Consumer Confidence
Despite minor adjustments in quarterly sales figures, the UAE retail sector remains resilient. Consumer confidence, coupled with innovations in retail strategies and digital adoption, positions the market for sustained growth. As highlighted by Cantatore, the evolving shopping dynamics and robust retail environment signify a positive outlook for the future.
This growth showcases the UAE’s standing as a dynamic and adaptable retail market, well-prepared for continued success.
