Robust consumer spending drives UAE, Saudi economic momentum

In the UAE, spending on tech & durables (T&D) from April 2024 to March 2025 reached $5.3 billion, marking a two per cent year-over-year increase, a study showed. Key growth categories include smartphones, media tablets, vacuum cleaners, and headsets.

- Somshankar Bandyopadhyay

According to data from NielsenIQ, a leading consumer intelligence company, the fast-moving consumer goods (FMCG) sector in the UAE also saw a seven per cent increase, driven by rising demand for snacking, beverages, dairy, and frozen foods, with personal care spending up six per cent.

The Middle East continues to distinguish itself as a global economic outperformer, with the UAE and Saudi Arabia leading the charge.

Consumer spending remains strong across both markets, though increasingly value-driven. In Saudi Arabia, growth remained steady: FMCG rose by 3.3 per cent, and T&D by 0.2 per cent. Notable category gains include petcare (+10 per cent) and snacking (+9 per cent), reflecting evolving lifestyle priorities, while paper products and home care saw declines.

Retail dynamics are shifting rapidly. In the UAE, traditional trade channels outpaced organised retail, with FMCG growth of 10 per cent versus 3.2 per cent, while T&D saw balanced growth across both.