The United Arab Emirates (UAE) and Saudi Arabia are undergoing an incredible transformation, powered by mega-projects and the integration of AI into their national strategies. This momentum is echoed in their private sectors, too, which are also boosting AI spending.
This expansive development, guided by Saudi Arabia’s Vision 2030 and the We the UAE 2031 vision, is leading to burgeoning, digitally engaged populations and an expanding consumer base. The UAE expects 11.35 million residents this year, while Saudi Arabia will welcome 6 million new people between 2020 and the end of the year.
Our latest research, leveraging Google Search and Visa spend data, uncovers how consumers' habits are evolving in these countries, particularly during key periods of heightened activity, called ‘peaks’. It shows a clear rise in consumer search and spend, with people shopping online and in-store, domestically, and internationally.1 It also offers strategic insights to help you navigate these market nuances, tailor your communications, and differentiate your brand.
Search interest and spend in the UAE and Saudi outpace international growth
Focusing on top discretionary consumer spend categories in the UAE and Saudi, our research explores online, in-store, local, and global transactions. Discretionary spending is defined as money that consumers spend on things other than necessities like food, clothes, and fuel, offering an unfiltered lens into consumer reactions to market shifts and marketing initiatives. These categories represent significant search interest on Google, including searches that show an intent to make a purchase, find a service, or engage in other commercial activities.2 They also represent nearly 50% of the total purchase spend observed by Visa.3
Exploring these top discretionary consumer spend categories paints an interesting picture. Last year they saw around 10% growth in search volume in both the UAE and Saudi Arabia, with Visa spend on them jumping 17% and 11% respectively.4 This growth is stronger than in other international markets, suggesting consumer optimism that goes beyond increases driven by inflation.5
Where people shop is driven by what they want to buy
While search interest for online retail gains traction in both nations, physical stores remain relevant, especially for “near me” searches.6 The purchase channel is nuanced, shifting between e-commerce and in-person buys based on the product.7
Convenience fuels online fashion purchases, propelled by quick commerce, a sector of e-commerce focused on extremely fast delivery.8 Yet for luxury goods, physical stores are crucial, offering the sensory experience and authenticity that capture 92% of UAE and 97% of Saudi luxury retail spend, locally and abroad.9
The rise of cross-border commerce is also clear. In 2024, search interest for international e-commerce brands in both countries skyrocketed over 90%.10 Though domestic merchants retain most spend, one-sixth of all transactions in both countries are with international sellers.11 Notably, 20% of Saudi's online fashion spend is international, versus 5% locally.12
Mastering the 6 peak moments in the UAE and Saudi
Mastering peak moments is crucial for marketers in the UAE and Saudi. These periods of accelerated search and spend are fuelled by diverse religious, cultural, and commercial events, spanning both Hijri and Gregorian calendars.
To truly understand and compare these peaks, we introduced "peakiness". This metric reveals how much search and spend surge during peak moments, compared to quieter “non-peak” times of the year.
Our analysis pinpoints six peak moments in the UAE and Saudi Arabia, combining those that take place close together. This helped us identify a mix of major, established surges and emerging opportunities.
The 3 major, established peaks in the UAE and Saudi:
1. Ramadan and Eid Al Fitr
A culturally significant moment, this peak ignites massive increases in retail search and spend, particularly for apparel and beauty.13 Luxury apparel items also soar, with related search interest jumping 21% in the UAE and 45% in Saudi Arabia towards Ramadan's end.14
2. Back-to-school
The back-to-school season is a six-week sprint. Saudi Arabia kicks off earlier, making it a larger national event with sustained buzz and search interest even after classes resume.15 In the UAE, overseas spending dips the week before school starts as families return.16 This is a trend mirrored in Saudi Arabia around late July, driven by a surge in local spending around pay day.17
3. November sales peak (Black Friday)
November has transformed into a major discount powerhouse, with e-commerce sales soaring 44% above the monthly average, largely driven by Black Friday.18 During this peak week, deal-related search interest skyrockets by 69%, while spending surges 31% in the UAE and 36% in Saudi Arabia.19
Marketers should keep 'super peaks' in mind. This is when major peaks collide, for example Ramadan and Black Friday in 2033, likely leading to surges in consumer activity.
The 3 growing peaks in the UAE and Saudi
1. Saudi national holidays
Saudi national holidays, like Founding Day (Feb. 22) and National Day (Sep. 23), ignite retail surges and deal-related search interest. In 2024, Saudi Founding Day spending rose 44% above non-peak times, significantly boosting apparel, beauty, and home categories.20
2. Eid Al Adha
Eid Al Adha's shifting timing still ignites a boost in overall retail-related search interest. It sees luxury apparel and beauty-related search interest climbing 11% in the UAE and 15% in Saudi Arabia.21
3. End-of-year season
The growing end-of-year season — including Christmas and New Year's Eve — is rapidly emerging as a key discount peak, with more Saudi retailers launching clearance sales. This increasingly social moment also sees restaurant-related search interest climb 10% in the UAE and 8% in Saudi in the last two weeks of the year versus the two weeks before.22
Marketing tip: Leverage the power of ‘super peaks’
Marketers should also anticipate 'super peaks'. This is when major peaks coincide, for example Ramadan and Black Friday in 2033, likely promising unprecedented surges in consumer activity.23
3 ways to build a winning peak plan
With an understanding of how people are shopping — and when — it’s time to maximise brand growth. Strategically tailoring campaigns to each peak's unique traits, creating culturally resonant content, and timing offers for optimal impact is key:
1. Cater for nuances
Your marketing plans must adapt to market dynamics. In Saudi Arabia, post-payday spending surges, intensifying during major seasonal events.24 On the other hand, in the UAE, online shopping takes centre stage, significantly influencing engagement and spend.25
2. Adapt and differentiate
In diverse peak moments, it’s important to ditch generic marketing. Adapt messages beyond discounts for celebration or connection, and prioritise differentiation to cut through noise. Leveraging generative AI, like Veo 3 and Imagen, can help to efficiently craft unique, contextual ads, ensuring your brand truly resonates and wins attention.
3. Master visual discovery and next-gen consumers
The way consumers search and shop has fundamentally transformed. Not only does today’s fluid digital world blend searching, streaming, scrolling, and shopping, but a new era of visual search has emerged, fuelled by AI. Google Lens has grown 65% year-on-year, processing over 100 billion visual searches this year alone, with one in five carrying commercial intent.26 Meanwhile, younger people are using Circle to Search to start more than 10% of their searches.27 It’s crucial that brands adapt to these new, blended interactions, meeting people where they are to connect when intent is highest.
