UAE brands see surge in demand during Ramadan

The UAE is leading the value of the average Ramadan online shopping basket in the Middle East and North Africa (Mena) this year, with an average order value (AOV) of $102, a report showed on Thursday.

A new study from Flowwow, a Uae-based global gifting marketplace for local brands, and Admitad, an affiliate marketing platform, has revealed that Ramadan traditions are fueling a surge in online shopping across the Mena region and motivate people to buy more. The UAE is followed by Kuwait and Qatar with $99 and $79 respectively.

Despite the fact that the key days of the holy month are still ahead, according to Admitad partner network, the number of online orders has already increased by four per cent and gross merchandise value (GMV) by six per cent. The average order volume has also slightly increased — from $34.5 to $35.3.

Certain categories of goods and services have experienced significant spikes in popularity compared to non-ramadan periods. Hotels have seen a remarkable increase of 56 per cent, followed by aeroplane tickets (+40 per cent), flowers and souvenirs (+37 per cent), electronics (+30 per cent), and food delivery (+26 per cent). Additionally, there has been a notable surge in the purchase of sporting goods (+21 per cent).

“Given UAE’S diverse population, strong cultural tradition of gift-giving, and the increasing impact of digital technologies, the country’s online gifting market presents significant growth prospects and is predicted to expand at a compound annual growth rate (CAGR) of 19-20 per cent from 2024 to 2028,” a Flowwow statement said.

On the rise

Admitad experts made a comparison with last year’s activity and revealed that users are making 15 per cent more purchases during Ramadan 2024. Interestingly, although the number of purchases has increased, the total amount spent has remained relatively stable.

“As Eid Al-fitr approaches, a time when everyone is looking to buy gifts, we expect online shopping to hit new highs. This trend shows how digital shopping is not just about buying things easily but also about finding meaningful gifts that celebrate our traditions. ,” said Anna Gidirim, CEO of Admitad.