UAE shoppers are bigger bargain hunters than their Saudi counterparts

Shoppers in the United Arab Emirates are bigger bargain hunters than their counterparts in Saudi Arabia. That is according to research from NielsenIQ.

While both UAE and KSA shoppers are described as promotion sensitive, those is the UAE are more likely to change stores as they chase promotions. In doing so, UAE shoppers exhibit a slightly stronger inclination toward brand preference. This suggests that while promotions are influential, brand reputation and trust play a role in their purchasing decisions.

KSA’s higher promotion intensity, coupled with increased efficiency, suggests that brands are strategically utilizing promotions to drive sales while minimizing costs. Temporary price reductions appear to be the dominant promotion type.

NielsenIQ’s data also shows that while the UAE has maintained a stable promotion intensity, there has been a slight decline in efficiency. Temporary price reductions have become more prevalent in recent years, suggesting a shift in promotional strategies.

The difference in price sensitivity between the two nations partially explains in part why the UAE market has a larger share of affordable brands, while the Saudi market is more skewed towards mainstream and premium brands.

Setting promotions aside, 72% of shoppers in UAE and 71% in KSA claim that they are willing to pay more for quality products as they care about quality. This number has increased +4 points versus a year ago.

Roughly the same number of retail consumers –63% of shoppers in UAE and 64% in KSA – believe it is worth paying more for anything that saves time for them. More importantly, this number has gone up by almost +10 points versus a year ago. NielsenIQ suggests that this validates the rise of smaller formats and e-commerce, channels that differentiate themselves through high convenience, among others.