UAE consumers maintained robust spending patterns during the third quarter of 2024, collectively spending $3.7 billion on fast-moving consumer goods (FMCG), technology, and durable goods, marking a 4.8 percent increase compared to the same period last year.
According to the latest insights from the NielsenIQ Retail Spend Barometer, UAE shoppers spent $2.1 billion on fast-moving consumer goods in Q3 of 2024, achieving a 6.4 percent increase compared to the same period last year. Tech and durables followed suit, with sales reaching $1.5 billion, marking a 2.5 percent year-on-year growth, demonstrating the market’s continued resilience and adaptation to evolving consumer needs.
UAE consumer spending trends
The FMCG sector saw a significant boost, climbing from 3.2 percent in Q3 2023 to 6.4 percent in Q3 2024. This positive trend was also observed in Q2 of 2024, although Q1 saw a decline. Similarly, UAE consumer spending on tech and durables faced a slower growth trajectory, with the rate decreasing from 7.7 percent in Q3 2023 to 2.5 percent in Q3 2024, reflecting a shift in consumer dynamics within the sector. After a particularly robust Q1 performance, which saw new product launches including the Samsung Galaxy S24, the market has shown a gradual stabilization.
“The positive growth we’re seeing across both sectors reflects the UAE’s dynamic retail environment and strong consumer confidence. As we continue to witness the evolution of shopping behaviors and the rise of digital solutions, the retail sector remains well-positioned for sustained growth and innovation,” stated David Cantatore, retail lead NIQ Middle East.
UAE consumer spending in the third quarter of 2024 was strong, particularly driven by back-to-school sales and the growing prominence of convenience retail. The total expenditure of $3.7 billion reflects the country’s robust retail market and the increasing adoption of digital shopping solutions.
In addition, the growth of new communities across the UAE has catalyzed the rise of convenience retail, with consumers making more frequent, smaller shopping trips. This shift in shopping behavior came with an increasing preference for healthier and sustainable products, as well as the rapid adoption of online and QuickCommerce grocery shopping platforms, particularly among younger, tech-savvy consumers and busy professionals.
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Retail landscape goes digital
The retail landscape last quarter has been significantly shaped by the rise of online shopping and QuickCommerce solutions. These digital platforms have transformed traditional shopping and spending patterns, offering UAE consumers seamless digital experiences and convenient home delivery options. The success of back-to-school promotional campaigns and new product launches has further contributed to the rise in UAE consumer spending.
“The growth of new communities is fueling 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,” added Cantatore.
