UAE consumer spending expected to rise as Eid approaches

Khaleej Times

23-03-2025

Consumer enthusiasm for shopping and leisure activities during Eid has increased, with 46 per cent expecting to spend more than they did in 2024, a study showed on Thursday.
A recent survey by Toluna and MetrixLab shows that consumers plan to allocate more of their budgets to socialising (51 per cent), dining out (44 per cent), and entertainment and staycations (43 per cent), reflecting a renewed focus on premium experiences during the holiday.
As Eid 2025 approaches, social interactions remain a top priority, with 85 per cent of UAE residents planning to visit relatives and friends, a slight increase from 84 per cent in 2024. Shopping malls continue to be a major attraction, not just for retail therapy (78 per cent, slightly down from 81 per cent in 2024) but also for entertainment purposes (72 per cent), reflecting a growing consumer demand for immersive Eid experiences beyond shopping. Additionally, 66 per cent of UAE residents are planning to engage in cultural activities, underscoring a heightened appreciation for traditional and community-driven celebrations.
However, there are areas where consumers intend to cut back compared to 2024: 31 per cent plan to spend less on food delivery, and 37 per cent aim to reduce their spending on fast food. Instead, residents are prioritising in-person dining experiences and home-cooked meals, reinforcing a shift toward more personalised and traditional Eid celebrations.
Eid gifting
Eid gifting remains a core element of celebrations, with 90 per cent of UAE residents planning to give gifts in 2025. The survey reveals a notable rise in self-gifting, increasing from 39 per cent in 2024 to 42 per cent this year, as consumers indulge in personalised treats and luxury purchases.
Children continue to be the primary recipients of Eid gifts, with 66 per cent of consumers planning to buy gifts for them—slightly down from 68 per cent in 2024. Gifting for spouses (64 per cent) and parents (50 per cent) remains consistent, while gifting for friends increases slightly from 46 per cent to 47 per cent.
Luxury gifting continues to rise, with 55 per cent opting for chocolate, dates, and sweets (up from 53 per cent in 2024), gold and diamond jewelry increasing to 29 per cent (from 27 per cent), and major electronic devices gaining popularity, rising from 13 per cent to 15 per cent.
More than half (51 per cent) of UAE residents is willing to spend more on Eid gifts, driven by a mix of emotional and financial factors. 45 per cent stated they want to make Eid more special this year to compensate for the pandemic years, up from 41 per cent in 2024. Additionally, 41 per cent cited improved personal finances, marking an increase from 36 per cent last year, while 37 per cent plan to buy gifts for more people (compared to 31 per cent in 2024). Furthermore, 28 per cent want to do something special for their family and friends, reflecting a 5 per cent increase from last year.
As Eid approaches, 'We see strong demand for premium electronics and home appliances, as families invest in products that enhance their lifestyle. Refrigerators, washing machines, and kitchen essentials are among the top choices, with customers taking advantage of festive promotions to upgrade their homes. This period is about convenience, quality, and making lasting investments. Additionally, Eid gifting sees a significant rise, with personal grooming products and small domestic appliances (SDA) becoming popular choices for thoughtful presents,' Vikas Chadha, CEO Jumbo Electronics, told Khaleej Times.
From an omnichannel perspective, key growth drivers have been large appliances, digital imaging, and small domestic appliances (SDA), all of which have shown steady growth, Chadha said. 'However, when it comes to personal devices like smartphones, laptops, and tablets, we are seeing a strong shift towards online purchasing on our e-commerce platform, Jumbo.ae. These categories have experienced double-digit year-on-year growth, reflecting evolving consumer preferences and the increasing convenience of online shopping,' he added.
Retail spending trends: Key shopping categories for Eid 2025
Several shopping categories are set to experience higher consumer spending compared to 2024, including:
• Groceries (+63 per cent)
• Chocolate, dates, and sweets (+55 per cent)
• Fashion clothing (+49 per cent)
• Fragrance (+48 per cent)
• E-Commerce and Digital Shopping Gain Further Traction
With digital convenience shaping shopping behaviours, the proportion of heavy online shoppers (those who shop daily or multiple times a week) has risen from 37 per cent in 2024 to 41 per cent in 2025. This trend underscores the growing reliance on digital platforms for Eid shopping, particularly for luxury and limited-edition purchases.
Retailers looking to attract Eid shoppers should focus on pricing strategies and value-driven promotions, as the survey found:
• 54 per cent of consumers are motivated by price discounts, making it the most influential factor.
• 38 per cent prefer offers that provide more quantity for the same price.
• 33 per cent are drawn to bundle offers that provide added value.
• 24 per cent appreciate brands that contribute to charity on their behalf, reinforcing the importance of corporate social responsibility in purchasing decisions.
Travel plans
Travel remains an integral part of Eid celebrations, with 52 per cent of UAE residents considering staycations and 48 per cent planning international trips. This reflects a balanced approach between local luxury experiences and overseas travel, indicating a strong demand for premium hospitality and leisure activities during the holiday season.
Georges Akkaoui, enterprise account director MEAT at Toluna, remarked: 'The survey highlights a clear shift in consumer behavior for Eid 2025, with greater emphasis on social interactions, cultural engagement, and increased discretionary spending. Businesses and retailers that align their strategies with these evolving consumer preferences — offering exclusive promotions, limited-edition collections, and value-driven experiences — will be well-positioned to maximise engagement and sales during the festive season'.