Consumer spending in the UAE surged to $3.7 billion in the third quarter of 2024, driven by robust performance in the fast-moving consumer goods (FMCG) and technology sectors, according to the NielsenIQ Retail Spend Barometer, powered by GfK intelligence. This represents a 4.8% year-on-year increase, showcasing the resilience of the UAE’s retail landscape and shifting consumer habits.
FMCG Leads the Growth
The FMCG sector spearheaded spending, recording $2.1 billion in sales—a 6.4% increase compared to Q3 2023. This resurgence followed a slower start earlier in the year and was fueled by back-to-school campaigns, convenience retail expansion, and a growing preference for digital shopping platforms.
Meanwhile, the technology and durable goods sector contributed $1.5 billion, reflecting a modest 2.5% annual growth. Despite a slowdown compared to the previous year, new product launches, including the Samsung Galaxy S24, and seasonal promotions helped sustain consumer interest.
Digital and Retail Evolution
The rise of new residential communities across the UAE has catalyzed the growth of convenience retail, encouraging frequent but smaller shopping trips. Simultaneously, online grocery delivery and QuickCommerce platforms have gained popularity, particularly among younger, tech-savvy consumers.
David Cantatore, Retail Lead at NIQ Middle East, noted:
“The UAE’s retail landscape has seen sustained growth in Q3 2024, driven by targeted promotions and evolving consumer preferences. The digital evolution of grocery shopping is reshaping the market, particularly for younger professionals.”
Diverging Sector Trends
While the FMCG sector has rebounded from earlier slowdowns, achieving its highest growth in over a year, the technology and durable goods segment has faced challenges. Growth dropped from 7.7% in Q3 2023 to 2.5% in 2024. However, demand for sustainable and healthier products has driven innovation in both sectors, aligning with consumer trends.
A joint report by the UAE’s Ministry of Economy and the Abu Dhabi Chamber of Commerce highlighted that over 40% of UAE consumers now use innovative payment solutions, further accelerating the shift toward digital commerce.
Cantatore added:
“The retail sector remains well-positioned for sustained growth, with digital trade expected to grow at an annual rate of 12.3% through 2028. This reflects strong consumer confidence and adaptability in the UAE.”
