Online shopping in the United Arab Emirates is experiencing a sharp acceleration as regional security concerns fundamentally alter consumer behavior. With the ongoing Iran conflict prompting residents to avoid crowded public spaces, digital retail and ultra-fast delivery platforms are capturing a massive spike in demand, according to new data from Redseer Consulting.
Quick Facts
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Alshaya Group online sales jumped 35 percent.
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Food and beverage delivery increased by 18 percent.
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55 percent of residents increased quick commerce usage.
Caution Accelerates UAE Retail Tech Adoption
The shift toward digital channels is broad and immediate. Redseer Consulting reports that food and beverage delivery volume has climbed 18 percent since the onset of the Iranian attacks.
Other major retail categories are experiencing similar surges. Beauty and personal care purchases are up 15 percent, fashion has grown by 14 percent, and long-shelf grocery items have seen an 11 percent increase.
Sandeep Ganediwalla, partner for Middle East and Africa at Redseer, described the changing consumer habits as material shifts in the market.
E-Commerce Penetration Outpaces Pandemic Growth
Current market dynamics mirror the rapid digital adoption seen during the Covid-19 lockdowns, though at a significantly larger scale. During the pandemic, online retail in the UAE jumped from AED 13 billion in 2019 to AED 22 billion in 2020.
By the end of 2025, the sector was valued at AED 57 billion, achieving a market penetration of over 17 percent.
Ganediwalla noted that the current baseline is much higher, adding that the latest behavioral change is driven by security concerns rather than government mobility restrictions.
Major regional operators are feeling the immediate impact. Alshaya Group, one of the largest franchise operators in the Gulf, reported an online sales increase of up to 35 percent.
CEO John Hadden noted that the delivery side of the business has provided welcome momentum amidst broader regional challenges.
Smaller local businesses are navigating similar adjustments. Kim Thompson, owner of RAW Coffee Company, reported a 45 percent drop in physical cafe sales during the first 16 days of Ramadan compared to the same period in 2025. However, the company recorded a 10 percent rise in online orders as customers purchased coffee bags for home consumption to maintain daily routines.
Quick Commerce Becomes a Rational Substitute
The most striking structural change is the heavy reliance on quick commerce—ultra-fast, 15-minute delivery services that operated at a fraction of their current scale during the pandemic.
According to a Redseer survey of 300 consumers, 55 percent of UAE residents reported utilizing quick commerce more frequently for both fresh and long-shelf groceries since the conflict began.
This consumer pivot is rooted in caution rather than mere convenience. Three-quarters of surveyed residents rated their concern about the regional conflict at seven or higher on a 10-point scale. Nearly half reported reducing their visits to physical malls and public spaces entirely.
When physical footfall carries a perceived risk, Ganediwalla explained, rapid delivery becomes the logical and rational substitute for consumers.
About Alshaya Group
Alshaya Group is a leading international franchise operator managing a portfolio of over 70 prominent brands. With operations spanning approximately 18 countries, the group operates more than 4,000 stores, including major global names such as Starbucks, H&M, American Eagle Outfitters, The Cheesecake Factory, The Body Shop, and Victoria’s Secret.
Source: AGBI
