Sustainability in UAE Retail: Are Consumers Buying Green?

Hi Dubai

08-05-2025

Sustainability is no longer just a trend, it's changing the way people shop, live, and make everyday choices around the world. Globally, consumers are increasingly aligning their purchases with their values, seeking out brands and products that reflect environmental and social responsibility. A 2024 PwC survey found that 85% of global consumers say they've personally felt the impact of climate change, and on average, they're willing to pay around 9.7% more for sustainably produced goods, even as inflation bites into household budgets. In fact, products marketed as sustainable are now growing nearly three times faster than conventional ones. But what about here in the UAE? Are shoppers in Dubai, Abu Dhabi, and Sharjah really embracing green retail, or is sustainability still more of a marketing message than an everyday movement?
The UAE has set ambitious goals when it comes to sustainability. In 2021, it became the first country in the Middle East and North Africa to announce a net-zero emissions target by 2050, aiming to transform not just its energy sector but its entire economy. That commitment took center stage when the UAE hosted COP28 in 2023 at Expo City Dubai, where the world gathered to assess climate progress under the Paris Agreement. Retailers didn't sit on the sidelines — major players like Alshaya Group highlighted initiatives ranging from recycling programs to reusable packaging, hoping to align with the country's green vision and appeal to a more conscious consumer base.
Retail, after all, plays a massive role in this shift. The UAE's retail market, valued at over AED 300 billion, stretches across fashion, beauty, food, and lifestyle — all sectors deeply tied to consumer habits and trends. In fashion, for example, local brands like The Giving Movement have emerged, using recycled materials to make activewear and donating a portion of sales to charity, blending style with social impact. Supermarket giants like Carrefour have launched programs such as 'Choose Better,' designed to nudge shoppers toward healthier, more sustainable choices on the shelves. Even in beauty, a sector expected to hit $60 billion across the Middle East by 2025, the clean beauty trend is gaining ground, with consumers gravitating toward non-toxic, eco-friendly products.
But despite the ambition and activity, one question remains at the heart of it all: are UAE consumers truly putting their money where their values are? Are they consistently choosing greener products, or is the interest in sustainability still more about appearances than action? In this article, we'll unpack the data, explore what's driving (or holding back) green consumerism in the UAE, and look at where the retail market is headed. Let's dive in and see what's really happening behind the green labels. UAE Retail Market: How Big Is the Sustainability Push?
The UAE's retail landscape is undergoing a significant transformation, with sustainability becoming a central focus. As of 2024, the UAE's retail market is valued at approximately AED 300 billion, reflecting its substantial role in the nation's economy. This growth is not just in scale but also in the nature of consumer preferences, with a noticeable shift towards eco-conscious products and practices.
A notable development is the increasing presence of sustainable and eco-friendly brands in the market. Homegrown fashion labels like The Giving Movement and Abadia are gaining popularity by offering products made from recycled and organic materials. In the beauty sector, there's a rising demand for clean beauty products, with the Middle East's market projected to reach $60 billion by 2025, and clean beauty alone expected to hit $2.6 billion. These trends indicate a growing consumer inclination towards products that are not only high-quality but also environmentally responsible.
Government regulations are also playing a pivotal role in steering the retail sector towards sustainability. In Abu Dhabi, a ban on single-use plastic bags was implemented in June 2022, leading to the elimination of 364 million bags and a significant reduction in greenhouse gas emissions. Dubai followed suit by imposing a 25 fils charge on single-use bags starting July 2022, with plans to phase them out completely. These measures are part of a broader strategy to reduce plastic waste and promote the use of reusable alternatives.
These concerted efforts by both the government and private sector reflect a robust push towards sustainability in the UAE's retail market, aligning with global trends and the nation's own environmental goals. Consumer Attitudes: What Surveys and Reports Reveal
Consumer attitudes toward sustainability in the UAE are evolving, reflecting a growing awareness of environmental issues and a willingness to support eco-friendly practices. However, a gap persists between consumers' stated intentions and their actual purchasing behaviors.
According to PwC's 2024 Voice of the Consumer Survey, a significant majority of consumers globally are willing to pay an average premium of 9.7% for sustainably produced or sourced goods, despite concerns about inflation and cost-of-living pressures. This willingness is driven by the fact that 85% of consumers report experiencing firsthand the disruptive effects of climate change in their daily lives.
In the Middle East, including the UAE, consumers are increasingly prioritizing sustainability in their purchasing decisions. PwC's regional findings indicate that 53% of consumers are buying more sustainable products as a way to reduce their environmental impact.
However, the intention to purchase sustainable products does not always translate into action. A study published in the IOSR Journal of Business and Management highlights that while health consciousness, environmental awareness, and trust in certifications positively influence the intention to buy sustainable products, factors such as high prices and limited availability can deter actual purchases.
Price sensitivity remains a significant barrier. The same study notes that affordability is a crucial factor affecting consumers' perception and buying intention towards sustainable products in the UAE. Resolving issues like high prices and limited supply can significantly enhance the appeal of sustainable products to consumers.
Moreover, concerns about greenwashing—where companies make misleading claims about the environmental benefits of their products—can erode consumer trust. Transparency and credible certifications are essential to build and maintain consumer confidence in sustainable products.
While there is a growing awareness and willingness among UAE consumers to support sustainable products, actual purchasing decisions are influenced by factors such as affordability, availability, and trust in product claims. Addressing these barriers is crucial for translating consumer intentions into sustainable purchasing behaviors.
Retailers in the UAE are actively embracing sustainability, implementing various initiatives to reduce environmental impact and promote eco-friendly practices.
Carrefour UAE, operated by Majid Al Futtaim, has taken significant steps towards sustainability. In July 2024, to support the Plastic Free July campaign, Carrefour offered a 33% discount on durable, reusable jute bags. Customers bringing their own reusable bags or purchasing one in-store received additional SHARE loyalty points. Moreover, shoppers spending over AED 40 in the fruit and vegetable section were provided with complimentary reusable bags.
The Giving Movement, a Dubai-based sustainable fashion brand founded by Dominic Nowell-Barnes, emphasizes ethical production and eco-friendly materials. The brand donates $4 from each item sold to charity, supporting organizations like Dubai Cares and Harmony House. Their commitment to sustainability and social responsibility has garnered significant attention, positioning them as a leading example of sustainable fashion in the region.
Noon, a prominent e-commerce platform in the UAE, has introduced several eco-friendly initiatives. They have transitioned to using 100% recyclable packaging materials for their parcels, aiming to minimize waste and promote a cleaner environment. Additionally, Noon encourages customers to opt for combined deliveries, reducing the number of trips and, consequently, carbon emissions.
Amazon UAE is also making strides in sustainability. The company has committed to achieving net-zero carbon emissions across its operations by 2040. To this end, Amazon is investing in carbon-free energy, expanding the use of zero-emission transportation, and collaborating with partners to broaden its impact.
Collaborations and certifications play a crucial role in advancing sustainability in the UAE's retail sector. Emirates Nature-WWF partners with various organizations to promote sustainable practices, offering guidance and support to businesses aiming to reduce their environmental footprint. Similarly, the Dubai Sustainable Tourism initiative recognizes and supports eco-friendly practices within the tourism and hospitality sectors, encouraging businesses to adopt sustainable operations.
Through these concerted efforts, retailers in the UAE are not only responding to growing consumer demand for sustainable products but are also contributing to the nation's broader environmental goals. The Price Challenge: Is Green Still a Premium Choice?
In the UAE, the pursuit of sustainable living is gaining momentum, yet the cost of eco-friendly products remains a significant consideration for consumers. While there's a growing awareness and willingness to support green initiatives, the price disparity between sustainable and conventional products poses challenges.
Recent studies indicate that sustainable products often carry a premium, with prices averaging 28% higher than their conventional counterparts. This gap, though narrowing from a 39% difference in 2018, still influences purchasing decisions, especially among price-sensitive consumers.
Inflationary pressures further complicate the landscape. The Central Bank of the UAE projected a 2.3% inflation rate for 2024, attributing the rise to increased commodity prices, wages, and rents. Such economic factors can deter consumers from opting for higher-priced sustainable goods, despite their environmental benefits.
Recognizing these challenges, retailers are introducing affordable green alternatives to make sustainable choices more accessible. Union Coop, for instance, launched the 'Ektifa' organic product line, featuring locally sourced items like organic milk and flour. This initiative not only supports local agriculture but also aims to provide cost-effective organic options to consumers.
Additionally, Union Coop has implemented programs to encourage sustainable shopping habits, such as offering free multi-use shopping bags for purchases over AED 200. These efforts align with broader environmental goals and aim to reduce reliance on single-use plastics.
While challenges persist, these initiatives reflect a concerted effort to bridge the gap between sustainability and affordability in the UAE's retail sector. As consumer demand for eco-friendly products grows, continued innovation and support from retailers will be crucial in making sustainable living a practical choice for all. Youth and Gen Z: The True Green Buyers?
In the UAE, Gen Z and millennials are emerging as pivotal drivers of sustainable consumerism. A recent study highlights that 72% of Gen Z professionals in the UAE are concerned about climate change, with over half experiencing "eco-anxiety" due to environmental issues. This heightened awareness is influencing their purchasing decisions, as many seek products and brands that align with their environmental values.
Social media platforms like Instagram and TikTok play a significant role in shaping these sustainable behaviors. Influencers in the UAE are leveraging their platforms to promote eco-friendly practices, from sustainable fashion choices to zero-waste lifestyles. Brands are increasingly collaborating with these influencers to authentically engage with younger audiences and promote their sustainability initiatives.
Dubai Fashion Week has also become a showcase for sustainable innovation. Designers like Pipatchara have been recognized for their commitment to sustainability, using recycled materials such as plastic waste to create fashion pieces. These initiatives resonate with Gen Z consumers who prioritize environmental responsibility in their fashion choices.
Overall, the combination of environmental concern, social media influence, and industry initiatives is fostering a culture of sustainability among the UAE's younger generations. As Gen Z and millennials continue to advocate for eco-conscious practices, their impact on the retail landscape is expected to grow, driving further innovation and commitment to sustainability. Greenwashing and Consumer Distrust
Greenwashing, a term coined to describe the practice of making misleading claims about the environmental benefits of a product or service, has become a significant concern in the UAE's retail sector. As consumers become more environmentally conscious, some companies exploit this by presenting a false image of sustainability to attract eco-minded customers. This deceptive marketing undermines genuine sustainability efforts and erodes consumer trust.
In the UAE, the issue of greenwashing is gaining attention. While there are no specific regulations addressing green marketing, existing laws like the Consumer Protection Law (Federal Law No. 15/2020) and the Advertising Guide issued by the National Media Council provide some guidance applicable to green marketing practices. However, the absence of detailed regulations means that companies can sometimes make unsubstantiated environmental claims without facing significant repercussions.
The fashion industry, in particular, has faced scrutiny for greenwashing practices. A study focusing on the UAE's fashion sector revealed that consumers perceive fast fashion companies as engaging in greenwashing due to a lack of adequate evidence supporting their sustainability claims. This skepticism highlights the need for transparency and accountability in environmental marketing.
To combat greenwashing and build consumer trust, certifications play a crucial role. Labels such as LEED (Leadership in Energy and Environmental Design), Fair Trade, Organic, and FSC (Forest Stewardship Council) provide third-party verification of a product's environmental credentials. In the UAE, there is a growing demand for such certifications, especially in the food sector, where consumers seek transparency in the supply chain and look for labels that assure ethical and sustainable practices.
Despite the availability of certifications, consumer education remains a missing link. Many consumers are unaware of what these labels signify or how to distinguish genuine sustainability efforts from greenwashing. Without proper education, consumers may fall prey to deceptive marketing tactics, inadvertently supporting companies that do not adhere to sustainable practices. Therefore, raising awareness about environmental certifications and promoting critical evaluation of green claims are essential steps toward fostering a more transparent and sustainable retail environment in the UAE. Will UAE Consumers Truly Shift?
Looking ahead, the UAE's commitment to sustainability is poised to reshape consumer behavior and retail trends over the next decade. With initiatives like Expo City Dubai and the development of smart cities, the nation is laying the groundwork for a more environmentally conscious society.
Expo City Dubai stands as a testament to the UAE's dedication to sustainable development. As a legacy of Expo 2020, it has implemented rigorous targets to reduce its operational carbon footprint by 45% by 2030 and 80% by 2040, aiming for net-zero emissions by 2050. These efforts are part of a broader strategy to promote sustainable urban living and influence consumer habits towards greener choices.
The integration of smart technologies in urban planning further supports this vision. Cities like Dubai and Abu Dhabi are leveraging artificial intelligence, the Internet of Things, and sustainable infrastructure to enhance efficiency and reduce environmental impact. These smart city initiatives not only improve the quality of life but also encourage residents to adopt more sustainable consumption patterns.
Moreover, the UAE's retail sector is expected to evolve in response to these developments. As consumers become more environmentally aware, retailers are expected to offer more sustainable products and services, aligning with the nation's green objectives. This shift is likely to be supported by government policies and incentives that promote eco-friendly business practices.
The UAE's strategic investments in sustainability and smart city infrastructure are set to drive significant changes in consumer behavior and retail practices, fostering a more sustainable future for the nation.
As we look across the UAE's bustling malls, online platforms, and local markets, one thing is clear: the conversation around sustainability is no longer on the sidelines — it's at the heart of how retailers shape their brands and how consumers think about their choices. Awareness is undoubtedly rising, fueled by government ambition, social media influence, and the visible presence of eco-friendly products on shelves. But when it comes to actual buying behavior, the gap between intention and action remains wide. Many consumers express a desire to shop sustainably, yet affordability concerns, lack of transparency, and confusion over which claims are genuine still hold them back.
To truly unlock the potential of green retail in the UAE, several shifts are needed. Sustainable options must become more accessible and affordable, brands need to back up their claims with real transparency and certifications, and consumers must be equipped with the knowledge to navigate this new landscape confidently. Without these changes, sustainability risks will become little more than a fashionable label rather than a meaningful movement.
The UAE retail market now stands at a critical crossroads — a tipping point where ambition and action must align. The question is no longer whether consumers care, but whether brands and shoppers can meet halfway to turn intention into impact. Will the UAE become a model of sustainable consumerism in the region, or will the momentum stall at the surface level? The next few years will decide whether the country's green promise transforms from aspiration into everyday reality — and each choice, at every checkout, matters. Also read:
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