UAE consumer spending surges to $3.7bln in Q3, 2024 

UAE consumers maintained robust spending patterns during the third quarter of 2024, collectively investing USD 3.7 billion in Fast-Moving Consumer Goods (FMCG), Technology, and Durable Goods, marking a 4.8% 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 USD 2.1 billion on FMCG products in Q3 2024, achieving a 6.4% increase compared to the same period last year. Tech & Durables followed suit, with sales reaching USD 1.5 billion, marking a 2.5% 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% in Q3 2023 to 6.4% in Q3 2024. This positive trend was also observed in Q2 2024, although Q1 saw a decline, with growth dropping from 9.4% in 2023 to 3.5% in 2024. Similarly, Tech & Durables faced a slower growth trajectory, with the rate decreasing from 7.7% in Q3 2023 to 2.5% in Q3 2024, reflecting a shift in consumer dynamics within the sector. 

UAE Consumer Spending Trends 

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 USD 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 catalyzed 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.

Market Evolution and Digital Transformation 

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

The FMCG sector recorded USD 2.19 billion in sales during Q3 2024, reflecting the ongoing consumer demand for essential items and household products. Analyzing the quarterly trends in 2024, the sector showed varying performance throughout the year. Q1 started strong with sales of USD 2.30 billion, followed by a slight decrease to USD 2.28 billion in Q2. The Q3 figure of USD 2.19 billion represents a moderate adjustment, reflecting typical seasonal patterns and evolving market dynamics.

Looking at quarter-by-quarter performance, Q1 2024 demonstrated robust growth, while Q2 maintained relative stability. The transition to Q3 shows the market adapting to post-summer seasonality, with the sector continuing to show resilience through convenience retail channels and online platforms. The sector has shown particular strength in adapting to evolving shopping preferences and community needs, with the growth of convenience retail in new communities playing a significant role in maintaining steady performance throughout the year.

TECH & DURABLES

The Technology and Durables sector achieved USD 1.52 billion in sales during Q3 2024, driven by Back-to-School sales and continued innovation in consumer electronics. Examining the quarterly progression in 2024, the sector began strongly with Q1 sales reaching USD 1.65 billion, followed by a moderation to USD 1.54 billion in Q2, and a slight further adjustment to USD 1.52 billion in Q3.

The quarter-by-quarter analysis reveals an interesting pattern: after a particularly robust Q1 performance, which was boosted by new product launches including the Samsung Galaxy S24, the market has shown a gradual stabilization. The modest decline from Q2 to Q3 was partially offset by strong Back-to-School sales campaigns, demonstrating the sector's ability to leverage seasonal opportunities effectively.

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."