DUBAI: Consumer spending in the UAE is forecast to top $261 billion (SR978.75 billion) by 2021, expanding at a compound annual growth rate (CAGR) of 7.5 percent over the next five years, the Dubai Chamber said in a report.
“The UAE’s consumer market is largely being driven by a fast-growing population with relatively high incomes, which are key economic fundamentals that support a robust long-term outlook for spending growth in the country,” said Hamad Buamim, the president and chief executive of Dubai Chamber, said in a statement on Sunday.
Dubai Chamber’s projection was based on a Euromonitor International report, which showed that the UAE consumer expenditure per household in 2016 amounted to around $103,000, the highest compared with neighboring Gulf countries.
Bahrain was second highest with $96,000 in household spending.
Buamim also pointed out a growing number of global brands and online retailers are taking advantage of the UAE’s predominantly young and diverse population, which are considered tech-savvy consumers.
The country’s booming tourism market continues to drive consumer spending, especially within the retail, tourism, hospitality and transport sectors, he added.
Housing expenditure for UAE consumers was pegged at $75.7 billion, or about 41 percent of total expenditure, last year while spending for food and non-alcoholic beverages reached $24.8 billion and transport expenditure at $16.7 billion.
Communication spending is expected to have the fastest growth by 2021, with a CAGR of 10.2 percent, thanks to a high penetration rate of smartphones and other digital devices in the country.
The growing popularity of mobile applications, and the emirate’s adoption of smart city solutions are also expected to boost spending in this area, Dubai Chamber said.
Health goods and medical services would be the second-fastest growing sector at an expected CAGR of 8.2 percent, followed by hotels and catering at 8.1 percent.
“High incomes, changing lifestyles, and increased health consciousness are expected to fuel consumer demand for goods and services in family-focused spending categories, such as education, and transport, as well as premium household products and services,” Dubai Chamber said.
UAE consumer spending to top $261 billion by 2021
UAE consumer spending to top $261 billion by 2021
Saudi ports brace for cargo surge as shipping lines reroute
RIYADH: Preliminary estimates suggest that several global shipping lines could reroute part of their operations to Saudi Arabia’s Red Sea ports, potentially adding 250,000 containers and 70,000 vehicles per month, according to Rayan Qutub, head of the Logistics Council at the Jeddah Chamber of Commerce, in an interview with Al-Eqtisadiah.
“Any disruption in the Strait of Hormuz not only affects maritime traffic in the Arabian Gulf but could also reshape global trade routes,” Qutub said, highlighting the strait’s status as one of the world’s most critical maritime chokepoints for energy and goods transport.
With rising regional tensions, international shipping companies are reassessing their routes, adjusting shipping lines, or exploring alternative sea lanes. This signals that the current challenges extend beyond the Arabian Gulf, impacting the global supply chain as a whole.
Limited impact on US, European shipments
The effects of these developments will not be uniform across trade routes. Qutub noted that goods from China and India, which rely heavily on routes through the Arabian Gulf, are most vulnerable to disruption. In contrast, shipments from Europe and the US typically traverse western maritime routes via the Suez Canal and the Red Sea, making them less susceptible to regional disturbances.
Saudi Arabia’s strategic location, he emphasized, strengthens the resilience of regional trade. The Kingdom operates an integrated network of Red Sea ports — including Jeddah, Rabigh, Yanbu, and Neom — that have benefited from substantial infrastructure upgrades and technological enhancements in recent years, boosting their capacity to absorb increased cargo volumes.
Red Sea bookings
Several major carriers, including MSC, CMA CGM, and Maersk, have already opened bookings to Saudi Red Sea ports, signaling a shift in operational focus to these strategically positioned hubs.
However, Qutub warned that rerouted shipments could increase sailing times. Cargo from Asia, which normally takes 30-45 days, might now require longer voyages via the Cape of Good Hope and the Mediterranean, potentially extending transit to 60-75 days in some cases.
These changes are also reflected in rising shipping costs, driven by longer routes, higher fuel consumption, and increased insurance premiums — a typical response when global trade patterns shift due to geopolitical pressures.
Qutub emphasized that Saudi Arabia’s transport and logistics sector is managing these developments through coordinated government oversight. The Ministry of Transport and Logistics, the Logistics National Committee, and the Logistics Partnership Council recently convened to evaluate the impact on trade and supply chains. Regular weekly meetings have been established to monitor developments and implement solutions to safeguard the stability of supplies and continuity of trade.
He noted that the Kingdom’s logistical readiness is the result of long-term strategic investments, encompassing ports, airports, road networks, rail systems, and logistics zones. Today, Saudi logistics integrates maritime, land, rail, and air transport, enabling a resilient response to global disruptions.
Qutub also highlighted the need for the private sector to continuously review logistics and crisis management strategies, develop alternative plans, and manage strategic stockpiles. Such measures are essential to mitigate temporary fluctuations in global trade and ensure smooth supply chain operations.
