Consumer spending in the UAE surged in the third quarter of 2024, reaching a total of $3.7 billion across fast-moving consumer goods (FMCG), technology, and durable products, according to new data. This marked a 4.8 percent year-on-year increase, reflecting the country’s resilient economy and shifting consumer behaviors, as detailed in the latest NielsenIQ Retail Spend Barometer, powered by GfK intelligence.
The FMCG sector led the charge, generating $2.1 billion in sales, a 6.4 percent increase compared to Q3 2023. Meanwhile, the technology and durable goods sector contributed $1.5 billion, reflecting a more modest 2.5 percent year-on-year rise.
The growth was supported by strong back-to-school sales, the expansion of convenience retail, and the increasing popularity of digital shopping platforms. QuickCommerce services and online grocery deliveries gained traction, especially among younger, tech-savvy consumers.
David Cantatore, retail lead at NIQ Middle East, commented, “In the third quarter of 2024, we’ve seen sustained growth in the UAE’s retail landscape, driven by targeted promotions and increased demand in FMCG and tech sectors.” He added, “The expansion of new communities has fueled convenience retail, while online grocery shopping continues to reshape the sector, particularly for younger and busy professionals. This shift demonstrates the market’s adaptability and its strong consumer demand for digital solutions.”
FMCG outpaced the technology sector, showing a strong recovery with year-on-year growth rising from 3.2 percent in Q3 2023 to 6.4 percent in Q3 2024. The sector had faced a slowdown earlier in the year, where growth dropped from 9.4 percent in Q1 2023 to 3.5 percent in Q1 2024. On the other hand, the tech and durable goods sector saw a decline, with growth dropping from 7.7 percent in Q3 2023 to 2.5 percent in Q3 2024. However, promotions like back-to-school offers and new product launches, such as the Samsung Galaxy S24, helped sustain interest.
The rise of new residential communities in the UAE has also driven the expansion of convenience retail, encouraging smaller and more frequent shopping trips. This trend aligns with growing consumer interest in sustainable and healthier products, as well as the rapid adoption of digital grocery platforms.
Cantatore added, “The positive growth we are seeing across both sectors demonstrates the UAE’s dynamic retail environment and strong consumer confidence. As shopping behaviors evolve and digital solutions continue to rise, the retail sector remains poised for sustained growth and innovation.”
Digital trade in the UAE is projected to grow at an annual rate of 12.3 percent between 2023 and 2028, fueled by the increasing popularity of “buy now, pay later” models and advanced fintech systems. A joint report from the Ministry of Economy and the Abu Dhabi Chamber of Commerce in May revealed that over 40 percent of UAE consumers rely on innovative payment solutions, highlighting the nation’s shift toward digital commerce.
