UAE online food delivery market likely to expand at 10.2% a year

Khaleej Times

5 days ago

Through 2033, the UAE's online meal delivery industry is anticipated to expand at a compound annual growth rate (CAGR) of 10.2 per cent, driven by consumer demands for convenience, speed, and loyalty benefits, data shows.
The Saudi Arabian market is projected to grow at a 15.4 per cent CAGR through 2030. This surge is primarily driven by urbanisation, advanced digital infrastructure including widespread internet access and smartphone usage, and a growing middle class with increasing disposable income and preference for digital convenience.
Recent data from Syrve Mena, a leading restaurant software provider in the Middle East, reveals that the first half of 2025 brought about a substantial shift in consumer behaviour in Saudi Arabia and the UAE. Mobile food delivery orders in the UAE and Saudi Arabia grew 30 per cent rise during H1, data showed.
'Mobile-based delivery will remain central to foodservice strategy in both the UAE and Saudi Arabia as they continue to develop digitally and increase mobile order volumes by over 10 per cent year-on-year. Consistent seasonal peaks, changing spending habits, and rapidly advancing technology are making mobile-first dining the new norm,' said Alexander Ponomarev, CEO at Syrve Mena.
According to reports, as mobile order volumes continue to grow steadily and consumers demand digital convenience, forecasts predict that the share of mobile-based orders will exceed 80 per cent in both markets by the end of 2025. This trend is further fueled by high digital penetration, making the digital transformation of the food delivery market inevitable. The dominance of food aggregators and restaurants' increasing drive toward process automation are also contributing to this shift.
According to Syrve Mena data, food aggregators continue to be the most popular mobile order channel in both markets. Approximately 75 per cent of mobile orders placed by surveyed restaurants are processed by apps like HungerStation, Talabat, and Deliveroo. The remaining 25 per cent is handled by call centres, proprietary apps, and websites run by restaurants — a tactic that larger chains seeking greater control over operational procedures can afford.
Majority of orders come from mobile devices. More than 70 per cent of all food delivery transactions are made through mobile phones, reflecting the region's preference for digital convenience. While it is challenging to accurately estimate the increase in mobile orders in H1 2025 compared to 2024, Talabat reports a 30 per cent year-over-year increase in Gross Merchandise Value (GMV) in Q1, which may indicate a significant rise in order volume in H1 2025. Revenue and adjusted Ebitda both grew by 34 per cent, while adjusted net income rose by 24 per cent.
Mobile delivery activity in the UAE reached its first peak in March 2025, coinciding with Ramadan, a time traditionally associated with increased food ordering. Another seasonal surge is expected between June and September, when high temperatures make outdoor dining less appealing and consumers turn to delivery more often.
The time slot from 8:00 PM to 11:00 PM consistently yields the highest volume of mobile delivery orders across most restaurant categories. For fast food, Italian, Indian, and international restaurant chains, this evening window is the most popular. However, Arabic food exhibits a distinct trend, with traditional breakfast items driving the highest delivery activity between 10:00 AM and 12:00 PM. Popular dishes range from kebabs in Arabic restaurants to rotis and butter naan in Indian chains.
In the global H1 2025 market, the most popular time for food ordering is generally 6:00 PM local time, according to restaurant industry reports. Additionally, there's a noticeable increase in breakfast orders, particularly on Monday mornings. The later evening peak in orders observed in the UAE and Saudi Arabia may be linked to Ramadan, when evening meals shift to after sunset, analysts say.