https://arab.news/gqv3d
RIYADH: Middle Eastern consumers are proving resilient but increasingly strategic, spreading spending across channels and price tiers as they navigate a more complex retail environment, data shows.
The latest “State of the Nation” report from market research firm NielsenIQ, covering performance in the first quarter of 2026 in the UAE and Saudi Arabia, puts the combined consumer basket spanning fast-moving consumer goods, tech, and durables at $56.2 billion.
UAE FMCG growth came in at 7.3 percent, driven by double-digit gains in snacking, beverages and ambient foods. The Kingdom told a more mixed story, with overall FMCG spend edging down 1.1 percent as declines in home care, baby care and frozen foods weighed on the market, even as its tech and durables segment grew 6 percent.
The findings stand against a broader backdrop of regional outperformance. According to Bain & Co., the MENA market is expected to continue expanding steadily, with regional executives remaining confident. The UAE and Saudi Arabia have helped drive volume growth, with MENA’s CPG market generating more than $450 billion in FMCG sales in 2024.
Andrey Dvoychenkov, NielsenIQ’s general manager for the Arabian Peninsula and Pakistan, said the data pointed to a fundamental shift in how brands must compete.
“The Middle East consumer is far from passive; they are deliberate, channel-agnostic, and increasingly sophisticated in how they allocate their spend,” he said.
Channel shift accelerates
One of the report’s sharpest signals is the speed at which shoppers are moving across retail formats. E-commerce captured 13 percent of the UAE’s FMCG market and more than 30 percent of its tech and durables revenues, while the Kingdom’s online channel delivered a 55 percent revenue uplift year on year.
Traditional trade held its own alongside digital growth, with UAE FMCG through that channel rising 10.9 percent and tech and durables climbing 16.8 percent.
Price sensitivity is on the rise, with consumers increasingly shopping around for the best deals, a trend that challenges brand loyalty across the region. NielsenIQ’s data showed that shoppers are moving deliberately at both ends of the price spectrum rather than trading uniformly up or down.
In FMCG, premium offerings grew 19 percent in the UAE and 14 percent in Saudi Arabia, while value products surged 17 percent and 19 percent, respectively. The same dual-track dynamic appeared in tech and durables, with premium brands up 20 percent in the UAE and value offerings rising 14 percent.
Active FMCG brands rose 8 percent in the Kingdom to surpass 11,000 and 6 percent in the UAE to top 13,000, while T&D active brands grew more than 18 percent across both markets.