UAE And Saudi Arabia 2025 : FMCG And Tech Durables Trends

The FMCG and Tech & Durables markets in the UAE and Saudi Arabia in FY 2025 showed resilient but diverging trends, as shoppers balanced value-seeking behaviour with rising interest in premium products. E-commerce, promotional events and expanding assortments shaped performance across both sectors, according to the State of the Nation FY 2025 analysis.

FMCG performance diverges between UAE and Saudi Arabia

In 2025, the UAE FMCG market posted +6.8% value growth, driven by a +4.9% increase in volumes and +2.0% unit value growth, signalling consumption-led expansion. Saudi Arabia’s FMCG value declined by -1.0%, with flat volumes at +0.1% and a -1.1% fall in unit values, highlighting ongoing price pressure.

Modern Trade remained the largest FMCG channel in both countries, but e-commerce was the fastest-growing format in Q4 2025. Online grocery platforms gained share across the UAE and Saudi Arabia as consumers increasingly shifted part of their regular baskets to digital channels for convenience and value comparisons.

Category and price-tier dynamics

Category trends varied between the two markets. In the UAE, Snacking was the fastest-growing FMCG category, reflecting stronger appetite for impulse and indulgence purchases. In Saudi Arabia, Petcare led category growth, with Snacking ranking second, underscoring broadening household priorities and changing lifestyle patterns.

FY 2025 reinforced a clear polarisation between value and premium FMCG brands. In the UAE, premium brands were the fastest-growing price tier, while value brands also continued to expand, compressing the mid-priced segment and forcing brands to sharpen positioning at either end of the price spectrum.

This tier shift aligned with shopper attitudes. In 2025, 70% of UAE shoppers stated they were willing to pay more for quality products, indicating sustained demand for higher-end propositions despite inflationary conditions.The coexistence of trading-up and value-seeking behaviours added complexity to assortment, pricing and promotion strategies.

Tech & Durables outpace FMCG

The Tech & Durables sector outperformed FMCG in both markets in 2025. Saudi Arabia delivered +13.7% value growth, while the UAE recorded +6.3% growth, supported by strong demand around major promotional windows and steady interest in telecom, large home appliances and consumer electronics categories.

Online channels continued to outperform brick-and-mortar retail for Tech & Durables in 2025, underlining e-commerce as an established and often preferred purchasing route. Growth in online sales was further supported by Singles Day, White and Yellow Fridays, and Cyber Monday, which concentrated demand during the peak shopping season.

Promotions and assortment expansion

Promotional activity across FMCG stayed high in Q4 2025. In Saudi Arabia, promotions increased toward year-end, while the UAE maintained broadly stable levels, anchored by the Dubai Shopping Festival. Temporary Price Reductions remained the dominant mechanic in both markets, though promotion efficiency softened slightly year-on-year.

SKU and brand expansion accelerated during FY 2025. The FMCG sector registered 99,211 active SKUs in Saudi Arabia and 134,271 in the UAE. In Tech & Durables, the number of brands grew by more than 20% year-on-year, largely driven by affordable and emerging players leveraging online channels to enter and scale.

Consumer behaviour and outlook for brands

Andrey Dvoychenkov, General Manager Arabian Peninsula and Pakistan, said, “FY data for 2025 shows that both Saudi Arabia and the UAE continue to demonstrate strong resilience, even amid evolving consumer and pricing dynamics. While Modern Trade remains dominant, it is e-commerce that is reshaping growth across FMCG and Tech & Durables.”

He added, “At the same time, we're seeing increasingly polarized consumer behavior shoppers are actively seeking value, yet premium segments are outperforming, particularly in the UAE. This creates a complex but opportunity-rich environment for brands that can balance affordability, quality and digital execution.”

Overall, FY 2025 data depicted markets shaped by digital acceleration, intensive promotional cycles and expanding assortments. Combined with more polarised consumer preferences between value and premium, these forces created both operational challenges and fresh growth openings for brands and retailers across the UAE and Saudi Arabia.