UAE consumers drive consumption-led growth as online shopping surges: The UAE’s FMCG sector grew 5.5% in 2024, outpacing Saudi Arabia’s 2.4% increase, as consumers in the Emirates drove demand for snacking, beverages, and dairy products, according to a press release citing NielsenIQ’s State of the Nation 2024 report. E-commerce played a key role, with FMCG online sales rising 29% in the UAE and 46% in Saudi Arabia.

Tech + durable goods: E-commerce accounted for over 25% of tech and durable goods (T&D) sales across the UAE and Saudi Arabia, expanding faster than physical retail. The UAE’s traditional retail sector—small, independent outlets—grew 10%, compared to 1.7% in Saudi Arabia.

Premium preferences persist: The UAE saw 1k new FMCG SKUs and 457 T&D brands enter the market in 2024. Premium brands led the sector, generating 55% of tech revenues in the UAE and 40% in Saudi Arabia. However, value-conscious consumers also drove 10% y-o-y growth in entry-level brands across both markets.

The expert take: “The UAE’s diverse, consumption-led economy is driving FMCG and tech growth, with shoppers balancing premium purchases with value-conscious choices,” said Andrey Dvoychenkov, NielsenIQ APP Cluster Leader. “Success in 2025 will require bold innovation and strategic agility as consumer behaviors evolve.”

ICYMI- According to NielsenIQ State of the Nation report for 1H 2024, 72% of UAE shoppers prioritize quality and are willing to pay more for premium products. The UAE’s FMCG market offers a mix of affordable and luxury brands, while Saudi Arabia’s leans towards mid-tier offerings.

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