During the holy month of Ramadan in 2024, the United Arab Emirates has witnessed a significant surge in online shopping, with the average Ramadan online shopping basket leading the Middle East and North Africa (MENA) region. According to a report released on Thursday, the average order value (AOV) in the UAE stands at $102, the highest in the region, followed by Kuwait and Qatar with $99 and $79, respectively.
The study, conducted by UAE-based global gifting marketplace Flowwow and affiliate marketing platform Admitad, highlights how Ramadan traditions are spurring a spike in online shopping across the MENA region. The data from Flowwow indicates a substantial 220% increase in sales of florist’s original bouquets from 2023 to 2024. Furthermore, the turnover of the confectionary category for the first three months of 2024 has already reached half of the total turnover for the previous year. The company noted significant rises in custom-designed cakes, personalized bento cakes, and chocolate-covered strawberries with custom designs in March 2024.
Despite the key days of Ramadan still ahead, Admitad’s partner network reports a 4% increase in online orders and a 6% rise in gross merchandise value (GMV). Additionally, the average order volume has risen slightly from $34.5 to $35.3.
Certain categories have seen notable increases in demand. Hotels experienced a 56% increase, followed by airplane tickets (40%), flowers and souvenirs (37%), electronics (30%), and food delivery (26%). There was also a significant uptick in the purchase of sporting goods (21%).
As a gifting marketplace, Flowwow has observed a remarkable 65% increase in online gift purchases from local UAE brands in March 2024 compared to the same period last year, and an 84% rise compared to non-festive periods. The trend towards authenticity and supporting local businesses is evident, with local makers offering unique options that resonate with the UAE’s diverse population and cultural traditions.
Flowwow predicts that the UAE’s online gifting market will continue to grow, with a compound annual growth rate (CAGR) of 19-20% from 2024 to 2028. This growth is driven by the country’s cultural tradition of gift-giving and the increasing impact of digital technologies.
Admitad experts have also noticed that users are making 15% more purchases during Ramadan 2024 compared to last year. While the number of purchases has increased, the total amount spent has remained stable, indicating that shoppers are making smaller, more frequent orders.
Anna Gidirim, CEO of Admitad, commented on this trend, noting that Ramadan blends tradition with modern shopping habits, leading to more people buying gifts online. This shift towards digital shopping reflects not just convenience but also the desire to find meaningful gifts that celebrate traditions. As Eid Al-Fitr approaches, online shopping is expected to reach new heights, showcasing the evolving nature of gift-giving in the digital age.
