Sustainable shopping is going to be one of the key consumer trends in the region next year, with people more prepared than ever to "pay for what makes a difference", according to experts.
More than 80 per cent of consumers both regionally and globally have noticed climate-related disruptions in their daily lives in the past 12 months, according to research by PwC. This has resulted in an increase in the number of consumers who support local products, are mindful of the environmental impact of manufacturing and value brands' reputations in meeting climate goals, the same report said.
As a result, consumers are willing to spend more on what they deem makes a difference. The survey, which gathered insights from more than 20,000 consumers across 31 countries and territories, highlighted that despite cost of living and inflationary concerns, consumers are willing to spend an average of 9.7 per cent more on sustainably produced or sourced goods.
"In the year ahead, companies must achieve a delicate balance between consumer affordability and environmental impact if they are to source and retain consumers. They will also need to bolster their digital engagement and service delivery, particularly as more consumers purchase products directly through social media,” said Sabine Durand-Hayes, global consumer markets leader, PwC France.
In a preview of key retail drivers for the coming year, Pathfinder highlighted that the Middle East continues to outpace global e-commerce growth rates, driven by mobile-first strategies, self-checkout technology, and advanced payment solutions. The retail technology firm has also identified sustainability and AI-powered tech as a key consumer trends for the year ahead.
“Retail in the GCC is undergoing rapid transformation,” said Sadique Ahmed, chief executive of Pathfinder Global. “Consumers today demand convenience, personalisation and sustainability. These trends reflect not just technological advancements but a deeper cultural shift in how people shop. These insights highlight the key areas retailers must focus on to succeed in this dynamic landscape.”
Creating a sustainable platform
To cater to more sustainably minded consumers looking for local UAE products, more platforms are being launched to help small local businesses to expand and sell their products online. MintMarket.ae is the brain child of Sally Maddison, a resident of Sustainable City in Dubai. The online platform evolved from pop-up makers markets across Dubai and Abu Dhabi that showcased mainly handmade products – opening the door to the expanding e-commerce industry.
The Mint Market started with just two physical markets in 2021, supporting 50 local businesses. In 2024, this number ballooned to 24 markets, supporting more than 600 small businesses – with close to 200 more registering an interest to participate in the last two months of the year.
Ms Maddison told The National that this is an indication of the demand for less mass market products and growth potential of the market in the UAE.
"I've had all of these brands that were making the products on their own. They were their own marketing manager. They were building their own websites. They're putting so much money for social adverts and SEO, and I just thought, hang on a second, if we all came together, this could be enormous," said Ms Maddison.
To encourage more consumers to shop locally, Mint Market will be launching a collaboration with Smart EV in 2025 to have items delivered via electric vehicle.
According to a report released earlier this year by EZDubai, the total size of the e-commerce market in the UAE reached Dh27.5 billion in 2023. This number is expected to exceed Dh48.8 billion by 2028.
Local markets supporting sustainable businesses flourish
Ripe Market, a community-led enterprise to support small local businesses launched in 2011. Becky Balderstone, Ripe founder and managing partner told The National that sustainability is top of mind for many consumers today, "more and more, people are making conscious decisions to support small, local businesses that prioritize reducing waste and offering eco-friendly products."
Ms Balderstone said that as a result of consumer demand, the Ripe Market has intentionally shifted its vendor selection to focus on businesses that offer locally sourced, organic products and eco-friendly alternatives. "The rising interest in conscious fashion has drawn more people to explore unique, eco-friendly clothing options that help reduce the waste caused by fast fashion. Additionally, many of our food and beverage vendors have made the switch to recyclable materials for their takeaway items."
Sustainability professional Charlene Nawar is one of the makers selling products on the Mint Market site and at the Ripe Market. Like many of the other vendors, her soaps were a passion project developed during the Covid-19 pandemic.
Ms Nawar's brand, Unwrapped, creates handmade soaps and candles inspired by local produce. "The containers are made with desert sand and the rubble from demolished buildings," she said. "It's crushed into smaller particles and mixed with concrete, and we create this really beautiful container that obviously speaks of the UAE and tells the story of the UAE, which people absolutely love, and then we can refill it."
Unwrapped has seen an annual average increase in sales of around 20 per cent over the past three years. "Since the pandemic, there has been a noticeable shift in consumer behaviour, with a growing preference for locally made products that support local artisans and reduce carbon footprints," said Ms Nawar.
Profile
Company name: Marefa Digital
Based: Dubai Multi Commodities Centre
Number of employees: seven
Sector: e-learning
Funding stage: Pre-seed funding of Dh1.5m in 2017 and an initial seed round of Dh2m in 2019
Investors: Friends and family
The burning issue
The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE.
Read part four: an affection for classic cars lives on
Read part three: the age of the electric vehicle begins
Read part one: how cars came to the UAE
Explainer: Tanween Design Programme
Non-profit arts studio Tashkeel launched this annual initiative with the intention of supporting budding designers in the UAE. This year, three talents were chosen from hundreds of applicants to be a part of the sixth creative development programme. These are architect Abdulla Al Mulla, interior designer Lana El Samman and graphic designer Yara Habib.
The trio have been guided by experts from the industry over the course of nine months, as they developed their own products that merge their unique styles with traditional elements of Emirati design. This includes laboratory sessions, experimental and collaborative practice, investigation of new business models and evaluation.
It is led by British contemporary design project specialist Helen Voce and mentor Kevin Badni, and offers participants access to experts from across the world, including the likes of UK designer Gareth Neal and multidisciplinary designer and entrepreneur, Sheikh Salem Al Qassimi.
The final pieces are being revealed in a worldwide limited-edition release on the first day of Downtown Designs at Dubai Design Week 2019. Tashkeel will be at stand E31 at the exhibition.
Lisa Ball-Lechgar, deputy director of Tashkeel, said: “The diversity and calibre of the applicants this year … is reflective of the dynamic change that the UAE art and design industry is witnessing, with young creators resolute in making their bold design ideas a reality.”
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Fund-raising tips for start-ups
Develop an innovative business concept
Have the ability to differentiate yourself from competitors
Put in place a business continuity plan after Covid-19
Prepare for the worst-case scenario (further lockdowns, long wait for a vaccine, etc.)
Have enough cash to stay afloat for the next 12 to 18 months
Be creative and innovative to reduce expenses
Be prepared to use Covid-19 as an opportunity for your business
* Tips from Jassim Al Marzooqi and Walid Hanna
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Started: April 2017
Founders: Mostafa Kandil, Ahmed Sabbah and Mahmoud Nouh
Based: Cairo, Egypt
Sector: transport
Size: 450 employees
Investment: approximately $80 million
Investors include: Dubai’s Beco Capital, US’s Endeavor Catalyst, China’s MSA, Egypt’s Sawari Ventures, Sweden’s Vostok New Ventures, Property Finder CEO Michael Lahyani
APPLE IPAD MINI (A17 PRO)
Display: 21cm Liquid Retina Display, 2266 x 1488, 326ppi, 500 nits
Chip: Apple A17 Pro, 6-core CPU, 5-core GPU, 16-core Neural Engine
Storage: 128/256/512GB
Main camera: 12MP wide, f/1.8, digital zoom up to 5x, Smart HDR 4
Front camera: 12MP ultra-wide, f/2.4, Smart HDR 4, full-HD @ 25/30/60fps
Biometrics: Touch ID, Face ID
Colours: Blue, purple, space grey, starlight
In the box: iPad mini, USB-C cable, 20W USB-C power adapter
Price: From Dh2,099
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Lexus LX700h specs
Engine: 3.4-litre twin-turbo V6 plus supplementary electric motor
Power: 464hp at 5,200rpm
Torque: 790Nm from 2,000-3,600rpm
Transmission: 10-speed auto
Fuel consumption: 11.7L/100km
On sale: Now
Price: From Dh590,000
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The specs
Engine: 4.0-litre flat-six
Torque: 450Nm at 6,100rpm
Transmission: 7-speed PDK auto or 6-speed manual
Fuel economy, combined: 13.8L/100km
On sale: Available to order now
Defence review at a glance
• Increase defence spending to 2.5% of GDP by 2027 but given “turbulent times it may be necessary to go faster”
• Prioritise a shift towards working with AI and autonomous systems
• Invest in the resilience of military space systems.
• Number of active reserves should be increased by 20%
• More F-35 fighter jets required in the next decade
• New “hybrid Navy” with AUKUS submarines and autonomous vessels
The Settlers
Director: Louis Theroux
Starring: Daniella Weiss, Ari Abramowitz
Rating: 5/5
57%20Seconds
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Results
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The specs: 2018 Nissan Patrol Nismo
Price: base / as tested: Dh382,000
Engine: 5.6-litre V8
Gearbox: Seven-speed automatic
Power: 428hp @ 5,800rpm
Torque: 560Nm @ 3,600rpm
Fuel economy, combined: 12.7L / 100km
Killing of Qassem Suleimani
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Why your domicile status is important
Your UK residence status is assessed using the statutory residence test. While your residence status – ie where you live - is assessed every year, your domicile status is assessed over your lifetime.
Your domicile of origin generally comes from your parents and if your parents were not married, then it is decided by your father. Your domicile is generally the country your father considered his permanent home when you were born.
UK residents who have their permanent home ("domicile") outside the UK may not have to pay UK tax on foreign income. For example, they do not pay tax on foreign income or gains if they are less than £2,000 in the tax year and do not transfer that gain to a UK bank account.
A UK-domiciled person, however, is liable for UK tax on their worldwide income and gains when they are resident in the UK.
