Retail spending in the Mena region during Ramadan in 2023 is bound to hit $66 billion, with inflation contributing to the growth, according to a new report by Redseer Consulting.
Spending is expected to rise from $61 billion last year after plummeting to $46 billion in 2020 and increasing to $57 billion in 2021.
The report predicted that planned purchases will rise by 14 per cent during the Holy Month, while spending on cooking at home will decrease to 50 per cent on last year. In the meantime, gift spending will rise by 44 per cent while gathering expenditures will increase by 33 per cent.
The levels of enthusiasm about Ramadan shopping in the UAE this year seem unchanged compared to last year, according to responses to the survey. This is in stark contrast with Saudi Arabia where consumers have found their shopping zeal diminishing during the holy month.
Respondents in the UAE said that when shopping online, deals and promotions and fast delivery are the most important, while Saudi consumers prioritise free shipping during the month.
Respondents seem eager to spend on fashion, dining out and domestic travel, but they are less likely to spend on consumer-packaged goods and furniture than last year, according to the report.
The likelihood of spending on cars is at the same level as last year, Redseer Consulting reports.