As the holy month of Ramadan approaches, consumers across the UAE are gearing up for a season of reflection, generosity, and celebration. This period not only holds deep cultural significance but also presents a unique opportunity for businesses to align with evolving shopping behaviors.

Consumer excitement for Ramadan is at an all-time high, with a +20% year-over-year (YoY) surge in enthusiasm. Several key factors are fueling this trend: a growing willingness to spend (+5% YoY), a positive economic outlook reinforced by the IMF’s upward revision of the UAE’s 2025 growth forecast, and the convergence of Ramadan with seasonal events like spring fashion launches and Mother’s Day. These are set to drive Ramadan retail sales to an estimated $10 billion in 2025.

Retailers are adapting to these shifting dynamics by extending promotional periods and launching exclusive Ramadan-themed product lines. Additionally, social commerce is transforming product discovery, with consumers increasingly relying on peer recommendations, influencers, and community-driven shopping experiences. This highlights the need for brands to foster deeper consumer relationships and cultivate a strong sense of community around their offerings.

The impact of Ramadan spending is evident across multiple industries. Food services are witnessing increased demand, with more consumers dining out and ordering in for Iftar and Suhoor. Home & personal services are thriving as individuals invest in wellness and self-care. The retail sector, particularly grocery and beauty/personal care, is experiencing a surge of over 20%, driven by self-care trends and gifting traditions. Additionally, travel is on the rise, with greater interest in domestic and international trips before Eid. Home products are seeing a 10-15% growth, reflecting preparations for festive gatherings, while fashion and electronics continue to grow at a steady pace, fueled by exclusive collections and promotional campaigns.

As Ramadan 2025 unfolds, the UAE retail market is poised for significant expansion, driven by heightened consumer enthusiasm and strategic business adaptations. By prioritizing social commerce and community engagement, brands can strengthen consumer loyalty and maximize their impact during this pivotal season.

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