Amna Puri-Mirza
Research Expert covering the Middle East
Grocery retailers in the United Arab Emirates - statistics & facts
Once limited to traditional corner stores and markets, grocery retail in the United Arab Emirates (UAE) now spans large-scale hypermarkets, neighborhood supermarkets, discounters, and an increasingly dominant online sector. Grocery shopping in the country has transformed significantly over the past decade, reflecting the country’s fast-paced development and diverse population. This transformation is driven by changing consumer expectations, advancements in technology, and the growing demand for both convenience and quality. The real per capita consumer spending on food and non-alcoholic beverages in the UAE was forecast to reach more than 4,500 U.S. dollars by 2026.
Grocery retailer landscape in the UAE
The grocery retail landscape in the UAE is varied and well-developed, combining modern retail formats with traditional outlets. Large-format hypermarkets and supermarkets form the backbone of the sector, particularly in urban areas like Dubai and Abu Dhabi. In 2023, the retail value of supermarkets in the UAE reached around 5.05 billion U.S. dollars. These were complemented by mid-sized supermarkets and smaller neighborhood stores that serve residential communities. Leading players such as Carrefour (operated by Majid Al Futtaim), Lulu Hypermarket, and Nesto dominate the market, with many consumers considering them as their primary retailer. At the same time, discounters like Lidl and Nesto are gaining popularity, targeting price-sensitive segments with a no-frills approach. Convenience stores such as Zoom and Al Maya cater to on-the-go shoppers, especially in high-traffic areas like petrol stations and metro stations. While traditional “baqalas” still exist, especially in older district, their role is diminishing as consumers increasingly prefer the pricing, hygiene, and product variety offered by modern outlets.Trends and outlook
Several trends are shaping the sector and will likely define its future. One major development is the rapid growth of e-commerce, with retailers investing heavily in online platforms, delivery apps, and click-and-collect services. The revenue of the online grocery delivery market in the UAE was forecast to reach more than 1.5 billion U.S. dollars by 2026. In parallel, there is a growing demand for health-conscious and sustainable shopping, with more consumers seeking organic, environmentally- friendly products. The majority of respondents in a survey in Dubai reported that they regularly seek locally sources fruit and vegetables. Retailers are responding with curated product lines and green initiatives, including plastic reduction and food waste programs. Technology is also driving change, from self-checkout systems to AI-powered inventory and customer analytics. Looking ahead, the outlook for grocery retail in the UAE remains positive, with continued innovation, market diversification, and a strong regulatory framework supporting stable growth.
