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Arab News
06-06-2025
- Business
- Arab News
Saudis dig deep into their wallets as Eid Al-Adha drives spending surge
RIYADH: Saudi Arabia's Eid Al-Adha holiday is proving to be a major economic driver, fueling robust growth across the Kingdom's livestock, retail, and domestic tourism sectors. Coinciding with the annual Hajj pilgrimage, the extended public holiday channels billions of riyals into the economy as businesses ramp up operations to meet soaring seasonal demand. Livestock markets are bustling, shopping centers are teeming with eager consumers, and hotels and resorts across the Kingdom are reporting high occupancy rates — all pointing to a dynamic shift in consumer behavior and an increasingly diversified economic landscape. Retail activity, in particular, is experiencing a seasonal boom. From glittering gold souqs and fashion boutiques to thriving e-commerce platforms, shoppers are on the lookout for Eid gifts, festive attire, and high-end products. A recent survey by Toluna and MetrixLab shows that 47 percent of Saudi consumers expect to spend more this Eid than last year. Over half (51 percent) are boosting their shopping budgets, while 44 percent are allocating more for dining out. Among the most in-demand items this season are fashion apparel, gold and diamond jewelry, perfumes, and electronics. In response, retailers are rolling out aggressive promotions, with 49 percent of consumers attracted to price discounts, 40 percent favoring bundled deals, and 33 percent looking for cash-back incentives. The digital retail landscape is also witnessing significant momentum. The survey highlights that 31 percent of consumers now fall into the 'heavy digital shopper' category — individuals who make purchases daily or several times a week. 'Eid gifting remains a core element of celebrations, with 89 percent of KSA residents planning to give gifts in 2025,' the report stated. The report added: 'Luxury gifting continues to rise, with 41 percent opting for fashion cloths, up from 36 percent in 2024, dates, and sweets 45 percent, and major electronic devices gaining popularity, rising from 22 percent to 24 percent.' Fragrances and gourmet items such as dates and chocolates also continue to dominate gifting choices, reflecting cultural values and the desire to present meaningful and luxurious tokens of appreciation. The trend of self-gifting, while slightly down from 2024, remains strong, indicating the growing role of Eid as a moment for personal indulgence. The tourism and hospitality sector stands out as one of the biggest winners during Eid Al-Adha, with hotels, resorts, and travel operators across Saudi Arabia witnessing a surge in demand. JS Anand, founder and CEO of Leva Hotels, told Arab News that the holiday's timing alongside the Hajj pilgrimage makes it a uniquely impactful season, not only for spiritual observance but also for economic momentum driven by both local and international tourism. 'Eid Al-Adha will increasingly serve as a key driver for business and consumption, benefiting both local and regional markets. Beyond its economic impact, the holiday is also a time for spiritual reflection, generosity, and community, while highlighting Saudi Arabia's vibrant culture and hospitality,' Anand said. He added: 'Increased consumer spending during this period benefits industries such as transportation, hospitality, and retail, while the extended holiday period further amplifies economic activity.' Speaking on shifting consumer behaviors, Anand noted that travelers are becoming more discerning and value-conscious. While they are not necessarily looking for the cheapest option, they want to ensure they're getting meaningful value for what they pay. He added: 'Guests increasingly expect hotels to deliver not just a place to stay, but a personalized, experience-rich offering that resonates with their lifestyle and preferences.' Domestic tourism continues to thrive, but international travel has surged in popularity among Saudi residents. According to Wego, 96.12 percent of Eid-related travel searches in the Kingdom are now for international destinations, up from 87.34 percent last year. Top destinations include Egypt, India, and the UAE, as well as Pakistan, Turkiye, and Bangladesh, along with a rising interest in European and Southeast Asian locales such as Italy, Thailand, and Malaysia. Despite the international travel boom, domestic destinations like Jeddah, Riyadh, and Madinah, alongside Dammam and Abha, remain popular for their cultural attractions and spiritual experiences. Wego data suggests that cultural exploration is becoming a primary driver in destination selection, as travelers seek meaningful connections during the holiday. Anand affirmed this trend: 'The hospitality sector must be agile, crafting offerings that cater not only to the loyal domestic traveler but also to the rising wave of international visitors.' He continued: 'For hotels, this means providing thoughtfully tailored packages, seamless digital booking experiences, and culturally resonant, memorable stays that appeal to both local guests and the growing base of inbound international tourists discovering Saudi Arabia during the festive Eid season and beyond.' Businesses are also preparing for the holiday through targeted promotions and operational enhancements. 'Today, it's all about creating value-added, memorable, immersive experiences and curating unique, personalized offerings to meet the surge in demand and deliver exceptional value.' Mohammed Al-Mu'ajil, a tourism expert, told Arab News that Saudi Arabia is seeing remarkable shifts in travel and consumer behavior this Eid season. 'In 2025, Saudi Arabia witnessed a significant rise in consumer spending, with total expenditure reaching approximately SR148 billion ($39.46 billion) in March, the highest level since May 2021, reflecting a 17 percent increase compared to the previous year. This growth is attributed to the Ramadan and Eid Al-Fitr seasons, in addition to the Umrah season,' Al-Mu'ajil said. With more people shopping and traveling, businesses are also recalibrating their approach to Eid. Al-Mu'ajil also highlighted the increasing role of technology and digital outreach stating: 'Companies are increasingly relying on digital channels to engage with customers, with 94.03 percent of internet users in the Kingdom active on social media platforms such as X, TikTok, and Snapchat.' He also explained that domestic hotel nights increased by 14 percent, while international hotel nights rose by 13 percent. The Kingdom recorded a 48 percent increase in international visitors during the first quarter compared to the previous year, driven by Vision 2030 initiatives and relaxed visa regulations. International destinations are seeing strong demand from Saudi tourists, particularly Egypt, Turkiye, and Dubai, due to their geographic proximity, cultural similarities, and diverse tourism offerings,' he said. 'Red Sea cruises have also emerged as a new and appealing option, offering luxurious and comprehensive travel experiences.' He added that domestic travel remains a strong draw, stating: 'On the domestic front, cities such as AlUla, Abha, Al-Baha, Jeddah, and Riyadh have become favored destinations for Saudi travelers. These cities are distinguished by their natural and cultural diversity as well as advanced infrastructure, making them attractive to families and holidaymakers during the Eid season.' Al-Mu'ajil added that digital platforms are increasingly central to consumer engagement, noting that the number of e-commerce users in Saudi Arabia is projected to reach 34.5 million by the end of 2025. 'With Internet penetration expected to rise from 66.7 percent in 2023 to 74.7 percent by 2027, digital engagement is reshaping how Saudis prepare for Eid, from online bookings to promotional offers,' he said. Increased spending More than half — 51 percent — of consumers in the Kingdom said they are willing to spend more on Eid gifts this year. According to the Toluna and MetrixLab report, this is driven by a mix of improved financial confidence and a desire to make the holiday more special after years of pandemic-related limitations. About 38 percent of consumers expressed a desire to make this Eid more special to compensate for pandemic-era limitations, while 36 percent noted improved financial standing. In addition, 35 percent plan to expand their gift lists to include more people, and 30 percent expressed a desire to be more generous with their families and friends. These sentiments are reflected in higher spending across multiple categories. Fashion apparel, fragrances, and electronics have seen a significant bump, while gold and diamond jewelry purchases have also increased slightly. The trend underscores Eid's growing role not just as a religious and cultural moment, but as a peak period of emotional expression through gifting and consumer engagement With 89 percent of consumers planning to give gifts, and significant growth in retail and travel expenditures, Eid Al-Adha is proving to be not just a spiritual cornerstone — but a vital pillar of the Kingdom's economy. The economic impact of Eid Al-Adha is particularly evident in the livestock sector, which sees a surge in demand — particularly in sheep and goats. Local farmers, traders, and international suppliers navigate challenges such as rising feed costs and supply chain constraints while ensuring a steady supply. Although the Kingdom's livestock market remains robust, escalating feed prices have put upward pressure on animal prices, prompting some households to consider shared sacrifices or smaller livestock options. Seasonal livestock markets are also set up across major cities to accommodate the peak demand period. The evolving behavior of Saudi consumers — seeking quality, cultural relevance, and immersive experiences — indicates broader societal shifts and economic resilience. As Vision 2030 continues to reshape the Kingdom's economic landscape, seasonal events like Eid Al-Adha serve not only as cultural milestones but also as indicators for consumer confidence and economic diversification.
Khaleej Times
23-03-2025
- Business
- Khaleej Times
UAE consumer spending expected to rise as Eid approaches
Consumer enthusiasm for shopping and leisure activities during Eid has increased, with 46 per cent expecting to spend more than they did in 2024, a study showed on Thursday. A recent survey by Toluna and MetrixLab shows that consumers plan to allocate more of their budgets to socialising (51 per cent), dining out (44 per cent), and entertainment and staycations (43 per cent), reflecting a renewed focus on premium experiences during the holiday. As Eid 2025 approaches, social interactions remain a top priority, with 85 per cent of UAE residents planning to visit relatives and friends, a slight increase from 84 per cent in 2024. Shopping malls continue to be a major attraction, not just for retail therapy (78 per cent, slightly down from 81 per cent in 2024) but also for entertainment purposes (72 per cent), reflecting a growing consumer demand for immersive Eid experiences beyond shopping. Additionally, 66 per cent of UAE residents are planning to engage in cultural activities, underscoring a heightened appreciation for traditional and community-driven celebrations. However, there are areas where consumers intend to cut back compared to 2024: 31 per cent plan to spend less on food delivery, and 37 per cent aim to reduce their spending on fast food. Instead, residents are prioritising in-person dining experiences and home-cooked meals, reinforcing a shift toward more personalised and traditional Eid celebrations. Eid gifting Eid gifting remains a core element of celebrations, with 90 per cent of UAE residents planning to give gifts in 2025. The survey reveals a notable rise in self-gifting, increasing from 39 per cent in 2024 to 42 per cent this year, as consumers indulge in personalised treats and luxury purchases. Children continue to be the primary recipients of Eid gifts, with 66 per cent of consumers planning to buy gifts for them—slightly down from 68 per cent in 2024. Gifting for spouses (64 per cent) and parents (50 per cent) remains consistent, while gifting for friends increases slightly from 46 per cent to 47 per cent. Luxury gifting continues to rise, with 55 per cent opting for chocolate, dates, and sweets (up from 53 per cent in 2024), gold and diamond jewelry increasing to 29 per cent (from 27 per cent), and major electronic devices gaining popularity, rising from 13 per cent to 15 per cent. More than half (51 per cent) of UAE residents is willing to spend more on Eid gifts, driven by a mix of emotional and financial factors. 45 per cent stated they want to make Eid more special this year to compensate for the pandemic years, up from 41 per cent in 2024. Additionally, 41 per cent cited improved personal finances, marking an increase from 36 per cent last year, while 37 per cent plan to buy gifts for more people (compared to 31 per cent in 2024). Furthermore, 28 per cent want to do something special for their family and friends, reflecting a 5 per cent increase from last year. As Eid approaches, 'We see strong demand for premium electronics and home appliances, as families invest in products that enhance their lifestyle. Refrigerators, washing machines, and kitchen essentials are among the top choices, with customers taking advantage of festive promotions to upgrade their homes. This period is about convenience, quality, and making lasting investments. Additionally, Eid gifting sees a significant rise, with personal grooming products and small domestic appliances (SDA) becoming popular choices for thoughtful presents,' Vikas Chadha, CEO Jumbo Electronics, told Khaleej Times. From an omnichannel perspective, key growth drivers have been large appliances, digital imaging, and small domestic appliances (SDA), all of which have shown steady growth, Chadha said. 'However, when it comes to personal devices like smartphones, laptops, and tablets, we are seeing a strong shift towards online purchasing on our e-commerce platform, These categories have experienced double-digit year-on-year growth, reflecting evolving consumer preferences and the increasing convenience of online shopping,' he added. Retail spending trends: Key shopping categories for Eid 2025 Several shopping categories are set to experience higher consumer spending compared to 2024, including: • Groceries (+63 per cent) • Chocolate, dates, and sweets (+55 per cent) • Fashion clothing (+49 per cent) • Fragrance (+48 per cent) • E-Commerce and Digital Shopping Gain Further Traction With digital convenience shaping shopping behaviours, the proportion of heavy online shoppers (those who shop daily or multiple times a week) has risen from 37 per cent in 2024 to 41 per cent in 2025. This trend underscores the growing reliance on digital platforms for Eid shopping, particularly for luxury and limited-edition purchases. Retailers looking to attract Eid shoppers should focus on pricing strategies and value-driven promotions, as the survey found: • 54 per cent of consumers are motivated by price discounts, making it the most influential factor. • 38 per cent prefer offers that provide more quantity for the same price. • 33 per cent are drawn to bundle offers that provide added value. • 24 per cent appreciate brands that contribute to charity on their behalf, reinforcing the importance of corporate social responsibility in purchasing decisions. Travel plans Travel remains an integral part of Eid celebrations, with 52 per cent of UAE residents considering staycations and 48 per cent planning international trips. This reflects a balanced approach between local luxury experiences and overseas travel, indicating a strong demand for premium hospitality and leisure activities during the holiday season. Georges Akkaoui, enterprise account director MEAT at Toluna, remarked: 'The survey highlights a clear shift in consumer behavior for Eid 2025, with greater emphasis on social interactions, cultural engagement, and increased discretionary spending. Businesses and retailers that align their strategies with these evolving consumer preferences — offering exclusive promotions, limited-edition collections, and value-driven experiences — will be well-positioned to maximise engagement and sales during the festive season'.
Zawya
27-01-2025
- Business
- Zawya
Toluna and MetrixLab reveal 2025 UAE consumer trends: Financial prudence, sustainability, and travel dominate priorities
Key takeaways include: Prudent Spending Meets Value: Consumers are cutting back on discretionary expenditures while remaining willing to pay more for products and services that provide tangible benefits. Hybrid Vehicles Gain Popularity: With 41% of respondents favoring hybrids, sustainability is shaping automotive preferences. Travel Remains a Top Priority: Despite caution in other areas, 86% of UAE residents plan international vacations, prioritizing premium travel experiences. Sustainability Is Non-Negotiable: Eco-friendly packaging, clean-label products, and ethical practices are essential considerations for 60% of UAE consumers. UAE- The 2025 New Year Resolutions Insights Report, conducted by Toluna and MetrixLab, reveals key behavioral trends among UAE consumers. Based on responses from 550 UAE residents, the study identifies financial management, health, sustainability, and travel as top priorities. Notably, 93% of UAE residents have set resolutions for 2025, compared to 82% in 2024. Of those, one in four fully achieved their resolutions last year, while seven in ten partially succeeded. Additionally, 88% of respondents expressed confidence in achieving their 2025 goals. Concerns about the rising cost of living (57%), financial security (53%), and health (49%) are shaping decision-making in 2025 Financial Prudence Takes Priority With inflationary pressures continuing to shape consumer behaviors, financial management is the leading priority for UAE residents. 85% of respondents are focused on managing their expenses and saving money. Breaking this down: 44% are opting for a new job, 70% to manage their finances better and 77% to exercise more and eat healthy food. The shift toward prudence is evident in several key spending adjustments. For instance, 38% of respondents plan to reduce their spending on luxury goods and premium services, while 48% intend to cut back on dining out and food delivery and 39% on takeaway. Additionally, 37% of UAE residents are limiting their purchases of accessories, and 34% on electronic gadgets. While financial caution dominates, there is also a selective focus on maintain spending in areas that improve quality of life with 49% of respondents aim to continue investing in entertainment/ TV subscription, and 47% on skincare products. As well, Fitness remains a priority for 41% of UAE residents, who plan to maintain or increase their memberships to gyms and wellness centers, 49% on staycation, clothing and entertainment zone. Furthermore 64% expressed a desire to spend more time with family in 2025, reflecting a shift toward nurturing personal relationships and meaningful experiences alongside financial discipline. Big Ticket Expenses. While 30% of UAE residents plan to reduce spending on big ticket expenses, mainly on preowned cars (36%) and designer/ luxury brands (34%), it has been noticed the tendency to spend on high luxury items including buying a property/ house (77%), gold/diamond jewelry (75%) and high-end electronic items (71%). Health and Wellness Drive Consumer Choices The health-conscious movement is gaining momentum, with 49% of UAE residents prioritizing wellness as part of their New Year's resolutions with 77% to exercise more regularly and eat healthy food. This trend is influencing purchasing decisions across food and beverage categories, with consumers seeking products that align with their health goals, for instance 69% plan to consume more homemade cook, 67% a lot of fresh food while 68% to try out new healthy food products. Moreover, 60% are willing to pay premium for Fresh food with the quality and freshness (56%) scored the main elements impacting the purchase decision of groceries for UAE residents. The report highlights that 41% of respondents are willing to pay a premium for organic food, showcasing a preference for clean and sustainable options. Furthermore, 30% are investing in plant-based alternatives, while 34% are opting for "free-from" products such as gluten-free and allergen-free items. These figures underscore the demand for brands that offer transparency, nutritional benefits, and ethical sourcing in their products. Travel Remains a Cornerstone of Spending Despite financial caution in other areas, international travel continues to be a top spending category for UAE consumers. The report reveals that 97% of respondents plan to travel abroad in 2025 mainly to KSA (23%), USA (15%) and Turkey (13%) with an average of three trips per traveler anticipated during the year. Luxury travel, in particular, remains a strong preference, with 86% of UAE residents willing to spend more on premium experiences. This includes high-end airline services, five-star accommodations, and curated travel packages. Even for those cutting back on other expenditures, vacations are seen as an essential part of life, reinforcing the importance of the UAE's travel and hospitality sectors. Sustainability Shapes Consumer Behavior Sustainability continues to play a critical role in purchasing decisions for UAE residents, with many actively prioritizing environmentally responsible choices. The report indicates that 41% of respondents are willing to pay more for eco-friendly packaging, while 43% favor clean-label products that emphasize ethical sourcing and transparency. Beyond packaging, 60% of UAE consumers consider a brand's environmental and social responsibility as critical factors in their purchasing decisions despite the current economic situation. This emphasis on sustainability is further reflected in the automotive sector, where hybrid vehicles have emerged as the most likely car type to purchase for 41% of respondents in 2025. This trend highlights the growing importance of green mobility solutions in the UAE market. Social Media Dominates Consumer Engagement Digital platforms remain indispensable tools for engagement, with UAE consumers increasingly relying on social media for connection and discovery. The report reveals that 6 in 10 of UAE residents are actively planning to use YouTube and Instagram with 79% intend to engage more, leveraging diverse content offerings, versus 65% on Facebook and 62% on TikTok. These platforms present vital opportunities for brands to amplify their messaging, connect with tech-savvy audiences, and drive meaningful engagement. By tailoring their strategies to leverage the strengths of each platform, businesses can maximize their visibility and impact. Georges Akkaoui, Enterprise Account Director at Toluna MEAT, comments, 'The UAE's consumer landscape in 2025 reflects a clear shift toward purpose-driven decision-making. Financial prudence, sustainability, and personal well-being are shaping priorities. This report offers a roadmap for businesses seeking to navigate the UAE's evolving consumer landscape. By addressing these key trends, brands can foster trust, build loyalty, and drive meaningful growth in 2025.' About Toluna Toluna is a leading global research and insights provider that empowers clients to make smarter data-driven decisions. Combining our flexible platform, cutting-edge technology, expansive portfolio, and passionate experts, we simplify our clients' work and enable them to deliver greater business impact. From DIY to full-service consultancy, Toluna's unique approach can be tailored to fit any time, budget, and resourcing needs. 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