UAE consumer spending surges to $3.7 billion in Q3

UAE consumers maintained robust spending patterns during the third quarter of 2024, collectively investing $3.7 billion in fast-moving consumer goods (FMCG), technology, and durable goods, marking a 4.8 per cent increase compared to the same period last year.

According to the latest insights from the NielsenIQ Retail Spend Barometer, powered by GfK intelligence, UAE shoppers spent $2.1 billion on FMCG products in Q3 2024, achieving a 6.4 per cent increase compared to the same period last year. Tech & Durables followed suit, with sales reaching $1.5 billion, marking a 2.5 per cent year-on-year growth, demonstrating the market’s continued resilience and adaptation to evolving consumer needs.

The FMCG sector showed a significant boost in growth, climbing from 3.2 per cent in Q3 2023 to 6.4 per cent in Q3 2024. This positive trend was also observed in Q2 2024, although Q1 saw a decline, with growth dropping from 9.4 per cent in 2023 to 3.5 per cent in 2024. Similarly, Tech & Durables faced a slower growth trajectory, with the rate decreasing from 7.7 per cent in Q3 2023 to 2.5 per cent in Q3 2024, reflecting a shift in consumer dynamics within the sector.

UAE consumers showed strong spending in the third quarter of 2024, 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.

The growth of new communities across the UAE has catalysed the rise of convenience retail, with consumers making more frequent, smaller shopping trips. This shift in shopping behavior has been accompanied by 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.

The retail landscape in Q3 2024 has been significantly shaped by the rise of online shopping and QuickCommerce solutions. These digital platforms have transformed traditional shopping patterns, offering 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 quarter’s positive performance.

David Cantatore, retail lead, NIQ Middle East, explains: “In Q3 2024, we’ve witnessed sustained growth in UAE’s retail landscape, with strong consumer spending driven by targeted promotions and increased demand in both FMCG and tech sectors. 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.”

FMCG

Cantatore further adds: “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.”