Consumer spending in the UAE sees a significant increase during the holy month of Ramadan.
According to a recent survey conducted by the Interregional Center for Strategic Analytics in Abu Dhabi, household spending in the UAE surges by 20-40% during Ramadan, making it one of the most significant consumption seasons in the country.
This surge is fueled by special promotions and discounts offered by retailers across various sectors.
Areas Where Spending Decreases
In some areas, consumer spending witness some decline due to changes in daily habits during Ramadan, including:
- Non-Ramadan entertainment like: Cinemas, concerts, and events that do not align with the month’s traditions.
- Transportation & commuting: Fewer work-related travel expenses and reduced daytime mobility.
- Fast-food restaurants & cafes: Demand declines on quick meals and coffee shops, especially during daytime fasting hours.
- Gym memberships: A temporary drop in gym subscription renewals as exercise routines shift.
Planning for a Balanced Ramadan
The Interregional Center for Strategic Analytics recommends advance planning and budgeting for Ramadan.
In order to ensure a balance between enjoying the month and maintaining financial discipline.
The center encourages families on the below:
- Set a clear budget for the entire month.
- Plan expenses in advance to avoid impulse buying.
- Take advantage of discounts without unnecessary purchases.
By adopting these strategies, families in the UAE can make the most of Ramadan while keeping their finances in check.
Smart Spending & Budgeting Strategies for Ramadan
During Ramadan, many families in the UAE adopt cost-saving strategies to manage their expenses efficiently, following the below 6 steps:
- Budget-conscious grocery shopping by purchasing the essential food items and leveraging wholesale discounts.
- Home-cooked meals are preferred over ordering from restaurants.
- Mindful gift-giving, choosing symbolic gifts instead of luxury brands.
- Reducing electricity and water consumption.
- Avoiding peak-season ticket prices to have more control on the expanses.
- Cutting back on extravagant decorations and costly entertainment activities.
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Key Consumer Spending Trends During Ramadan
By Ramadan, expenditures are rising across food, shopping, entertainment, telecommunications and dining.
And also across charitable donations, community activities, travel, and purchases related to gifts, Eid celebrations, and household services.
As families in the UAE allocate a larger portion of their budget to spending during Ramadan, with a focus on:
- Shopping and social activities
- Dining out
- Gifting and Eid-related purchases
These consumer spending patterns reflect the cultural significance of the generosity month “Ramadan”, leading to a notable rise in expenditures.
Ramadan Mubarak to you and your family from UAE Voice team !
