UAE consumers demonstrated robust spending habits during the second quarter of 2024, collectively investing $3.8 billion in fast-moving consumer goods (FMCG), technology, and durable goods, a latest market study said.
The spending is a 3.4 percent increase from the same year-ago period, according to NIQ Retail Spend Barometer, powered by GfK intelligence.
The study said UAE shoppers spent $2.3 billion on FMCG and $1.5 billion on tech and durable products in Q2 2024, up by 4 percent and 2.6 percent, respectively, compared to the same period last year.
GfK intelligence said the rise in FMCG purchases underscores the ongoing demand for essential household items and personal care products.
Simultaneously, the increased investment in technology and durable goods reflects the UAE’s thriving digital economy and the rising disposable income of its residents, it said.
Key events such as the Dubai Shopping Festival, Pre-Ramadan and Ramadan sales, and the launch of the Samsung Galaxy S24 in January 2024 significantly impacted consumer spending in the first quarter.
The subsequent slump in Q2 is a typical trend observed following the Ramadan period.
Additionally, the summer months and holiday season affected tourism, impacting retail sales compared to Q1.
The study said the market’s almost flat growth in Q2 2024 can be attributed to the exceptionally strong performance in Q1 2024.
After a period of intense demand, particularly for items like consumer electronics, information technology and gaming, the market has reached a more stable phase.
“The demand for the consumer electronics sector has stabilized and is expected to recover more significantly by 2026-2027,” GfK intelligence said.
Roshni Sheth, NIQ Retail Lead, Middle East, said the positive spending trend is indicative of the UAE’s resilient economy and the confidence of its consumers.
“As the country continues to attract foreign investment and foster innovation, the retail sector is poised for further growth and expansion,” she said.
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