MENA Ramadan retail sales projected to reach $66B: Report

This year, the holy month of Ramadan is believed to push retail sales to $66 billion in the MENA region despite a subdued demand compared to 2021, according to Redseer Consulting.

According to the report, despite inflation, a stable demand during this time will bring in an additional $5 billion compared to last year.

With the onset of Ramadan comes a time of rejuvenation and renewal for the region, as a result, consumers are open to looking at new products and experiences during this period. For brands, Ramadan acts as an opportunity to launch new products and services that cater to the needs and preferences of the consumers, it found.

This year also marks a shift in online product discovery for consumers. Instead of traditional search methods, there is a push towards community channels, which assist in making informed decisions, and provide credible consumer reviews and digital consumers, according to Redseer.

“It, therefore, becomes important for businesses to adapt and revamp their strategies to cater to the evolving needs of consumer expectations. Brands must stay abreast of market trends to remain competitive and capitalise on market opportunities,” said Sandeep Ganediwala, Partner, RedSeer. 

This shift can also be attributed to the significant expansion of the GCC online retail scene, which grew from $10 billion in 2019 to a whopping $30 billion in 2022. A strong digital enabler ecosystem, a digital-ready population of over 54 million, and proactive policymaking created a boom in the GCC ecommerce segment, RedSeer said.

The push comes more from the well-established multichannel conglomerates that influence the ecommerce expansion into the GCC market. These conglomerates have both an online and offline presence. Meanwhile, digital natives continue to navigate the road to profitability.

“The business houses have captured ~40% of the online retail market, 3X compared to emerging economies like India, where digital natives rule about 80-90% of the market,” RedSeer said in the report.