Top News

In the UAE, spending on tech & durables (T&D) from April 2024 to March 2025 reached $5.3 billion, marking a 2 per cent year-over-year increase, a study showed. Key growth categories include smartphones, media tablets, vacuum cleaners, and headsets.

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. While global GDP growth is projected at 3.2 per cent in 2025, the UAE is expected to grow by 4.0 per cent and Saudi Arabia by 3.0 per cent, with further acceleration anticipated through 2027. Consumers across these regions continue to demonstrate strong resilience amid ongoing challenges.

This robust performance is underpinned by strategic international partnerships, balancing ties with both BRICS and Western economies, alongside targeted investments in digital transformation and a young, digitally connected population.

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 channels evolve: Value and e-commerce gain ground

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.

E-commercecontinues to expand its footprint. In the UAE, it now accounts for 30 per cent of T&D and 11 per cent of FMCG sales, up from nine per cent a year ago. In Saudi Arabia, online sales are also rising, with a 7.7 per cent increase in T&D and a 1.4 percentage point gain in FMCG e-commerce share.

“The economic momentum we’re witnessing across the Middle East, particularly in the UAE and Saudi Arabia, is a testament to the region’s strategic vision and adaptability,” says Andrey Dvoychenkov, General Manager, NielsenIQ APP. “Consumers today are more empowered, informed, and value-driven than ever before. We’re seeing strong growth in both premium and value segments, and a rapid evolution in retail channels—especially online. For brands, success hinges on relevance, agility, and a deep understanding of consumer expectations.”

Brand competition intensifies in a crowded marketplace

Andrey Dvoychenkov, NielsenIQ APP General Manager

The region’s economic promise is attracting a surge of global brands. In the FMCG sector, Saudi Arabia now hosts over 10.500 active brands (up 5 per cent YoY), while the UAE features 13,000 brands (up six per cent). SKU counts are also rising, with 130,000 SKUs in the UAE and nearly 100,000 in Saudi Arabia.

The T&D sector is similarly competitive; the number of active brands has seen great increase with 18 per cent and 21 per cent respectively in UAE and KSA. SKUs have also seen more than 50 per cent growth across both markets. This creates a vibrant but crowded landscape, requiring sharper brand strategies and deeper consumer insights.

Premium vs. value: The rise of the strategic shopper

Middle Eastern consumers are increasingly discerning, balancing premium aspirations with value-driven choices. Both the UAE and Saudi Arabia recorded double-digit growth in premium and value FMCG segments, highlighting a bifurcated market.

In T&D, value segments grew six per cent in Saudi Arabia and three per cent in the UAE, despite the category’s premium lean. This underscores two key trends: the rise of price-conscious decision-making and the growing availability of competitive alternatives.

As the Middle East continues its upward trajectory, global brands are positioning themselves to seize the opportunity. “But success will depend on a nuanced understanding of the region’s evolving consumer landscape —from digital trust and pricing sensitivity to channel dynamics and assortment strategy,” an expert said.

MENA’s ecommerce potential attracts global payment providers and drives innovative solutions Why e-commerce is now part of everyday life in the UAE

---