UAE's gifting boom: Cross-border gift share rises from 13% to 20.1% in 2024

Expats are increasingly turning to international online gifting to celebrate and share meaningful moments

Somshankar Bandyopadhyay

Published: Wed 30 Oct 2024, 10:00 AM

Last updated: Wed 30 Oct 2024, 11:19 AM

Recent research has revealed a 22 per cent increase in overall gift purchases in the UAE, with 20.1 per cent of these gifts being sent abroad — up by seven per cent and 11 per cent during the same period in 2022 and 2023.

According to data from Flowwow, a UAE-based gifting marketplace for local shops in 30+ countries, the top destinations for cross-border gifts were the United Kingdom (13 per cent), Spain (12 per cent), Turkey (10 per cent), Russia (8 per cent), the United States (7 per cent), Egypt (6 per cent), and Qatar (5 per cent).

This upward trend in cross-border gifting highlights the UAE’s role as a global economic, financial and innovation hub and reflects broader patterns across the Middle East and North Africa (Mena) region, where international connectivity is increasingly vital. Since 2020, about 400,000 people have relocated to the UAE.

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As of today, the number of expats in the UAE stands at 9.991 million, making up over 88 per cent of the country’s population. "This growing expat community, representing more than 200 nationalities, is driving the demand for cross-border e-gifting as residents seek to stay connected with loved ones worldwide," a Flowwow statement said.

Whether it is for personal occasions like birthdays, and anniversaries or for specific holidays such as Christmas, Easter, or Diwali, expats are increasingly turning to international online gifting to celebrate and share meaningful moments with family and friends. Flowwow experts noted this rise and conducted a deeper investigation into the reasons behind this trend.

From January to September 2024, domestic orders within the UAE accounted for a substantial 80 per cent of total sales, reflecting the region’s rich hospitality and gifting traditions. These local gifts had an average spend of Dh257, maintaining meaningful connections with families, friends and communities making every special moment even brighter. The UAE’s key gifting occasions were birthdays, anniversaries, promotions as well as key national and international holidays: Ramadan, Eid Al Fitr, Eid Al Adha, St Valentines, Christmas, Mother’s Day.

The leading destination for international gift deliveries was the United Kingdom, which comprised 13 per cent of international sales, with an impressive average spend of Dh505. This can largely be attributed to the significant number of UK expats residing in the UAE — around 240,000 British citizens. Many of these expats regularly send gifts back home for major occasions such as Christmas, birthdays, and anniversaries. The UK is a mature e-commerce market estimated at USD 280.55 billion in 2024, where consumers are well-acquainted with online gifting platforms and are willing to invest in high-quality gifts for their loved ones. Popular items sent include luxury hampers, flowers, and personalized gifts, all of which contribute to the higher average check value.

Spain followed closely, accounting for 12 per cent of total orders and featuring a notable average spend of Dh252. This trend is driven by the sizable Spanish expat community in the UAE, with more than 10,000 nationals making it the second-largest expatriate community in the MENA region. The Spanish community is one of our greatest assets, regularly sending gifts for key celebrations like Christmas, Reyes Magos (Three Kings’ Day), and birthdays. While Spain is a growing market for e-commerce, its gifting culture tends to be more modest, reflected in the lower average spend compared to the UK.

Turkey secured the third position with 10 per cent of all international transactions, where the average gift cost was Dh268. Key occasions such weddings, promotions and birthdays are common reasons for sending gifts to Turkey. While the average spend is lower than that of the UK, Turkish consumers still prioritise meaningful gifts, with popular categories including sweets like baklava, gift hampers and flowers.

Russia featured prominently, accounting for eight per cent of total international gift orders, with an average spend of Dh212. The United States followed closely, representing seven per cent of the total, with a higher average gift spend of Dh275. Egypt emerged as a significant market for gift exchange with the UAE, capturing 6 per cent of the overall gifting market, while Qatar made up five per cent of sales. The UAE’s gifting to Kazakhstan, Canada, and Estonia each accounted for four per cent of the total, with average checks ranging from Dh220 to Dh250.

India is one of the most significant markets for gift exchange with the UAE, reflecting the close ties many UAE residents maintain with family, friends, and colleagues in India. The average cost of gifts sent to India from the UAE typically ranges from Dh20 to Dh50, with flowers, sweets, and gift sets being popular choices. India’s gifting market is on the rise, valued at $72.56 billion in 2023, and is projected to grow at a CAGR of 3.4 per cent through 2029.

This growth highlights India as an increasingly important destination for gift exchange, supported by its vast and diverse market. While Flowwow does not currently operate in India, external analytics indicate that it is a substantial market for international gift deliveries, with significant potential for growth. The increasing demand for cross-border gifting solutions reflects the close-knit relationships maintained by expatriates in the UAE.

Flowwow CEO Slava Bogdan remarked, “Cross-border gifting trend illustrates that people want to be close to their loved ones despite the distance, and it’s Flowwow mission to provide easy-to-use solutions with enhanced processes and user flow to foster gift exchange in different countries. I believe our business will keep on growing as long as people will keep on loving each other and finding ways to show their feelings to those they appreciate.”

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