NIQ Retail Spend Barometer
UAE

UAE shoppers spent USD 3.8 billion on FMCG and Tech & Durables goods in Q2 2024

• Consumers in UAE spent USD 3.8 Billion on FMCG and Tech & Durables products in Q2 2024 and witnessed a 3.4% growth from last year
• Shoppers spent USD 2.3 billion on FMCG in Q2 2024 with a 4% uplift compared to the same period last year
• Shoppers spent USD 1.5 billion on Tech & Durables products in Q2 2024 with a 2.6% uplift compared to the same period last year

Sales value growth for FMCG sector increased from 2.3% in Q2 2023 to 4% in Q2 2024 whereas a drop was witnessed in Q1 from 9.4% in 2023 to 3.5% in 2024 

The slow growth in Q1 2024 is largely attributed to a decrease in manufacturer promotional activities affecting sales revenues. In addition, a 1% increase in inflation was another factor that impacted the growth in Q1 2024 compared to the same period last year 

While Q1 2024 saw a price increase, Q2 2024 saw a drop in prices resulting in an increase in volume and value sales in Q2 2024 compared to the same period last year.  

Tech & Durables witnessed a decline from 10.6% in Q2 2023 to 2.6% in Q2 2024 whereas Q1 saw a growth from 9.4% in 2023 to 11% in 2024. 

The growth in Q1 2024 was largely attributed to aggressive promotional activities during key promotional events like Dubai Shopping Festival, Pre-Ramadan and Ramadan periods. In addition, new product launches for telecom sector during Q1 2024 had positive impact on sales. 

A flat growth in the market was witnessed during Q2 2024 due to already stronger Q1 2024 activities. In addition, market for sectors like Consumer Electronics, Information Technology & Gaming has stabilized post strong demand after the pandemic e.g. demand for biggest category of TV’s within Consumer Electronics sector has stabilized and market will only see recovery by 2026-27 due to longer replacement cycles. A similar trend is observed for Mobile Computing primarily due to saturation in demand in recent quarters post witnessing strong pent-up demand post the pandemic. 

“The Retail Spend Barometer focuses on the slowdown in certain categories and the overall stability of consumer spending in the UAE. This 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.” 

Roshni Sheth, NIQ Retail Lead, Middle East