BrazilRamadan retail sales in UAE to eclipse $10 billion this year
It is that time of year again: Ramadan! And with the fasting, prayer, and family time also comes a big uptick in shopping. Ramadan-related sales in the UAE have seen steady growth in recent years and could reach $10 billion in 2025, according to analysis from Redseer Strategy Consultants.
Much of that record growth forecasted is linked to more aggressive promotional campaigns this Ramadan season as well as consumer behavior shifting towards quality and experiences. Many brands in the UAE have begun to launch Ramadan-specific products or sales campaigns that aim to boost sales around the holiday season.
There has also been an expansion of the Ramadan sales window, with retailers stretching promotions out over longer periods. This general increase in Ramadan sales applies not just to retail, but also to the food services and travel industries.
The push being seen from retailers for extra revenue during the excitement of the holiday season is much in line with retailers in Western countries, which have been very successful with lifting sales and unpacking new offers during festive seasons, such as Black Friday and Cyber Monday.
The analysis from Redseer Strategy Consultants shows that value proposition and experience have been growing, while the importance of price has declined somewhat. Despite that, inflation and rising rental prices have been a few factors putting pressure on Emirati consumer budgets, which is making lower prices more attractive.
Compared with a similar analysis from last year, the importance of good quality products has risen by 36%. Fast delivery and the availability of a wide variety of products are also significantly more important to consumers this year.
These changes in consumer sentiment highlight the need for retailers and ecommerce players in the UAE to offer better quality products and a greater selection. Sales would likely also be boosted if retailers meet the evolving shipping expectations of consumers.
“The UAE’s Ramadan retail market is on an impressive growth trajectory, driven by evolving consumer preferences, a heightened shopping spirit, and a strong economic outlook,” said Sandeep Ganediwalla, partner at Redseer Strategy Consultants.
“As value proposition and shopping experience take center stage over price sensitivity, retailers who focus on quality, convenience, and engagement will emerge as the biggest winners in this evolving landscape.”
New clothes, family meals, and gift-giving all mean Ramadan season is increasingly seen as a time for shopping in the UAE. For example, opening hours at several shopping malls in Dubai were extended for Ramadan this year. Several popular retailers have also introduced huge discounts this season, with Noon for instance stunting with discounts of up to 80%.
In 2025, Ramadan began in the evening on Friday, February 28, and is expected to end on Saturday, March 29.
