UAE consumer spending is set to grow the most globally in 2025

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UAE Consumer Spending Intentions – 2025

According to a new study, UAE consumer spending intentions are set to see a 13% increase in 2025. The anticipated increase in UAE consumer spending is believed to be the highest growth globally. AlixPartners published the 2025 Global Consumer Outlook report which surveyed over 15,000 consumers across nine countries. While spending is projected to decline in the U.S. and Europe this year, consumer sentiments in countries like the UAE, Saudi Arabia, and China remain buoyant. 

The expected rise in spending among UAE consumers is evident across all income levels, with high-income shoppers showing the most significant increase. The survey reveals that consumers below 45 will drive the spending surge across retail segments. This increase in consumer spending is largely attributed to greater disposable income. Conversely, consumers aged 45-64 are expected to either sustain their current spending habits or reduce them.

Improved UAE Economic Outlook – 2025

Nevertheless, consumer optimism in the region is fueled by an improved economic outlook and a decreased perceived need for saving among individuals. As a result, the UAE is expected to see higher spending across all sectors, especially in the clothing and grocery sectors. This is because the grocery sector witnessed the highest spending increase (47%) followed by the clothing sector (41%). In the Food and Beverage (F&B) sector, one-third of UAE consumers intend to dine out more while 41% plan to spend more on entertainment outside. It should be noted that the UAE’s F&B sector is set for robust growth at 17% CAGR backed by strong economic growth and booming tourism industry. Likewise, 26% of UAE consumers have also indicated travel and holidays.

The UAE is one of the safest countries to live with both Dubai and Abu Dhabi ranking highly in socio-economic standards, healthcare, education, and recreational amenities. The quality of life in the UAE has seen a drastic improvement with the country being home to high-income shoppers.

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Author: Waqas Siddiqui
I am passionate about supporting businesses in successfully expanding in the UAE and Gulf region. I can be reached at waqas@researchkonnection.com for research inquiries.