MENA’s economic promise builds brand competition in crowded retail marketplace

Dubai is the most populous city in UAE and a major global city. The Middle East continues to distinguish itself as a global economic outperformer, with the United Arab Emirates and Saudi Arabia leading the charge. While global GDP growth is projected at 3.2 per cent in 2025, the UAE is expected to grow by 4 per cent and Saudi Arabia by 3 per cent, with further acceleration anticipated through 2027.

Brand Competition and Market Landscape

As a result, the region’s economic promise is attracting a surge of global brands. In the fast-moving consumer goods (FMCG) sector, Saudi Arabia now hosts more than 10.500 active brands (up 5 per cent YoY), while the UAE features 13,000 brands (up 6 per cent). Similarly, the technology and durables (T&D) sector is also competitive, with the number of active brands witnessing great increase with 18 per cent and 21 per cent respectively in UAE and KSA. This creates a vibrant but crowded landscape, requiring sharper brand strategies and deeper consumer insights.

Market Performance Summary:

• UAE FMCG: 13,000 active brands (up 6%) with 130,000 SKUs.
• Saudi Arabia FMCG: 10,500 active brands (up 5%) with nearly 100,000 SKUs.
• T&D Sector: Over 50 per cent SKU growth across both markets.
• UAE T&D Spending: Reached $5.3bn (April 2024 to March 2025).

Consumer Behavior: The Rise of the Strategic Shopper

Middle Eastern consumers are increasingly discerning, balancing premium aspirations with value-driven choices. Both the UAE and Saudi Arabia recorded double-digit growth in premium and value FMCG segments, highlighting a bifurcated market. According to NielsenIQ App's Andrey Dvoychenkov, "For brands, success hinges on relevance, agility and a deep understanding of consumer expectations."

Consumer spending remains strong across both markets, though increasingly value-driven. In the UAE, the FMCG sector saw a 7 per cent increase, driven by rising demand for snacking, beverages, dairy, and frozen foods, with personal care spending up by 6 per cent. In Saudi Arabia, growth was more moderate but steady: FMCG rose by 3.3 per cent, and T&D by 0.2 per cent.

Retail Evolution and E-commerce Expansion

Retail dynamics are shifting rapidly. In the UAE, traditional trade channels outpaced organised retail, with FMCG growth of 10 per cent versus 3.2 per cent. People visit the textile market place in Bur Dubai, UAE, contributing to a bazaar culture cultural vacation scene in a Deira Dubai UAE retail store environment. Locations like Murshid Bazar and Naif Souq remain significant landmarks for visitors and tourists.

E-commerce continues to expand its footprint. In the UAE, it now accounts for 30 per cent of T&D and 11 per cent of FMCG sales, up from 9 per cent a year ago. In Saudi Arabia, online sales are also rising, with a 7.7 per cent increase in T&D and a 1.4 percentage point gain in FMCG e-commerce share. The economic momentum we’re witnessing across the Middle East is a testament to the region’s strategic vision and adaptability.