UAE consumer spending rose 13% in 2023

UAE consumer spending rose 13% in 2023

Overall UAE consumer spending rose by 13 per cent in 2023 compared to 2022, driven by a 14 per cent increase in the retail economy, a report showed on Thursday.

According to Majid Al Futtaim’s ‘State of the UAE Retail Economy’ Report, the highest growth in spend compared to 2022 came in the first half of 2023, due to the higher base effect from the previous year’s Fifa World Cup, which had given impetus to consumer spending as a result of a surge in tourists in the second half of 2022.

“It’s fair to say that the UAE has become synonymous with an unparalleled retail experiences, offering a diverse range of world-class shopping malls, luxury boutiques, hotels, restaurants, and experiences to an international consumer base. The country’s vibrant retail landscape has long been on a steep growth trajectory and this trend continued in 2023 as factors including tourism and consumer confidence drove increased spending,” the report said.

Consumer spending in the retail economy displayed robust growth throughout the year, with the absolute consumer spend in 2023 split evenly across the first half and the second half of the year.

Overall, spending remained buoyant throughout 2023 but stood out in the final quarter16 (contributing to