UAE consumer spending reached USD 3.7 billion in Q3 2024, marking a 4.8% year-on-year increase. This surge was driven by robust investments in Fast-Moving Consumer Goods (FMCG) and Technology & Durables (T&D). According to the NIQ Retail Spend Barometer, FMCG sales rose 6.4% to USD 2.1 billion, while T&D registered USD 1.5 billion, growing 2.5%.

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 experienced notable growth, driven by essential goods demand and the rise of convenience retail in new UAE communities. Additionally, consumers increasingly embraced QuickCommerce platforms and sustainable products, highlighting shifts in shopping behaviour.

Back-to-School sales and targeted promotions spurred T&D growth, generating USD 1.52 billion in Q3. Although Q1 showcased stronger performance with USD 1.65 billion, subsequent quarters displayed stabilisation. Seasonal campaigns like Back-to-School successfully offset declines.

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Digital transformation reshaped consumer habits, with online shopping and home delivery gaining momentum, especially among younger, tech-savvy professionals. Retail Lead David Cantatore noted: “Targeted promotions and digital solutions are key drivers of UAE’s retail resilience and innovation.”

FMCG Sector Performance

The FMCG sector thrived despite seasonal variations, maintaining strong consumer demand for household essentials. Q3’s USD 2.19 billion sales reflected adaptability through convenience retail and digital platforms.

The T&D sector leveraged seasonal opportunities, such as new tech launches and Back-to-School campaigns, demonstrating its ability to meet evolving consumer preferences.

Future Outlook

As the UAE retail landscape embraces digital innovation and sustainability, consumer spending trends point to continued growth, resilience, and adaptability.