Consumers in the UAE are loosening their purse strings when it comes to premium grocery baskets, while treading more cautiously when it comes to spending on technology, according to NielsenIQ’s 3Q 2025 State of the Nation report (pdf). This is a reversal of the trend in Saudi Arabia, where spending on higher-end tech is taking precedence.

Spending momentum in the UAE remained strong in the twelve months leading into September. Spending on both value and premium items in the FMCG category climbed 20%, with revenues rising 7.7% y-o-y — seeing significant growth compared to tech and durables, which saw sales climb 6.9% y-o-y, with spending rising on premium products as opposed to value-tier ones.

What they said: “UAE shoppers show strong growth at both ends of the spectrum, presenting opportunities for suppliers to cater to both entry-level and premium segments,” General Manager for the Arabian Peninsula and Pakistan Andrey Dvoychenkov told NielsenIQ.

Luxury retail gains momentum: The UAE is among the strongest performers in the Middle East luxury market, according to a Bain & Company press release. Luxury spending in the region is projected at 4-6% in 2025, supported by tourism in Dubai and Abu Dhabi and steady domestic demand. UAE consumers favor luxury experiences like fine dining, hospitality, and travel over traditional goods, the report states, while accessible luxury products are gaining traction among younger, value-conscious shoppers. High-end offerings in yachts, private jets, and premium hospitality also remain robust.

Modern trade dominates FMCG: Modern trade — which includes supermarkets and large chain stores — account for roughly 70% of FMCG sales in the UAE, while traditional trade — think smaller mom-and-pop shops — represents 18% and e-commerce contributes 11.9%, gaining two percentage points compared to the same period last year. In the tech segment, organized retail generates more than 75% of revenues, with online channels covering nearly one-third of sales — showing consumers’ growing comfort with purchases of high-value electronics digitally even as grocery shopping remains largely store-based.

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