E-commerce spending in the UAE and Saudi Arabia will surge during Ramadan, with nearly 80% of consumers shopping frequently

E-commerce spending in the UAE and Saudi Arabia is expected to soar further this month, with around three quarters (76%) of consumers planning to shop online more frequently during Ramadan, according to a new survey.

About 60% of respondents in both countries said they expected to make more grocery purchases during Ramadan this year, and 50% said they were likely to spend more on food deliveries, according to Checkout.com, a global payment solutions provider.

The survey was conducted between March 23 and 28 this year among 1,000 residents in the UAE and Saudi Arabia to analyze consumer spending intentions and trends during Ramadan in these two major e-commerce markets in the Middle East.

The COVID-19 pandemic has boosted global e-commerce spending. According to a recent Mastercard survey, 73% of UAE consumers have shopped more online since the outbreak last year.

Girish Nandan, Country Manager for UAE and Oman at Mastercard, said: “There is no doubt that the way we live and shop has changed dramatically as a result of the pandemic. Consumers are accelerating their adoption of new shopping and payment habits as a result of the restrictions that the coronavirus pandemic has brought to our daily lives.”

Overall, the majority of consumers in the UAE and Saudi Arabia (around 95%) said they shopped online. 26% said they would also visit physical stores less often to buy products and services this month.

Among the majority of online shoppers (67%), the most common payment methods are credit cards and digital wallets. About a third (37%) said they expect to use cash on delivery less often this Ramadan compared to last year.

"Many countries in the Middle East that have traditionally used cash payments are now shifting to more frequently used digital payments. The pandemic has sparked a payments revolution that is not going away," said Mohammed Ali Yusuf, Checkout.com's regional manager for the Middle East, North Africa and Pakistan ( MENAP ) .

Youssef said the trend presents an opportunity for merchants to “unlock more value and do better” in each customer transaction. “This is especially important during times like Ramadan when competition among merchants is fierce and merchants need to deliver the online shopping experience that consumers expect.”

middle East