The Impact of Ramadan on E-Commerce in the UAE

by Julia Jackle - May 21, 2019

With no doubt, Muslim adherence to Ramadan, a one-month fasting period during the day, is an ideal marketing opportunity for online merchants. Reports across the UAE and GGC show that spending and consumer behavior during the period of Ramadan is different from other times. It is commonly noticed that during Ramadan, online traffic increased by more than 100%. And it’s not just internet users who just use the internet but also people who make purchases. Data also indicates that conversion increased by 30% during Ramadan. And as expected, social media is also more active, especially at night.

Moreover, the research found that in the week leading up to Ramadan, shopping app downloads grew by 40% and purchases with shopping apps increased by 35%. But what does this translate to?

  1. Increase in spending

With the onset of the holy month of Ramadan, online sales in the Middle East are expected to significantly rise. According to a report published in the Forbes magazine, online retail sales are anticipated to go up by 106% while the number of consumers who shop online is prospected to increase by 40%. From these statistics, it is clear that the holy month of Ramadan significantly affects the purchasing and consumption patterns in the Middle East. Perhaps, this trend can be attributed to the tendency of revelers exchanging gifts during Eid al-Fitr. As a matter of fact, consumers in Saudi Arabia intend to buy lots of gifts during this period.

  1. Sales increase in stores after dark

Even though the day can sometimes seem and feel lethargic for online sellers, the night gives way to a buzz, which in turn increases retail sales. According to Criteo, one of the world’s leading commercial marketers, this year, sales peaks were seen two weeks before the holy month. With retail sales between 9pm and 5am increasing by 29% in Southeast Asia and by 36% in the Middle East a considerable increase compared to the other months of the year when Ramadan is not celebrated.

  1. Increased sales in fashion and household industries

Ramadan, in the United Arab Emirates, is without doubt an exclusive experience and special period of the year. Moreover, at this time, retail sales are strongly stimulated, especially in the fashion and household goods. By 2021, Muslims are expected to spend $ 368 billion in clothing, indicating that Ramadan is a key period in the retail calendar. With a growing global Muslim population – the increase from 1.7 billion in 2014 to 2.2 billion by 2030 – it would be appropriate for all brands to respond to this very important population.

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About the Author:
Julia Jackle
Julia is the co-founder and CEO of Creative971 and has written blogs in the past for the Entrepreneur Magazine UAE. Her extensive knowledge in the E-Commerce industry in the UAE and GCC is widely appreciated.

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