UAE online sales rise as shoppers choose safety during conflict

• Food, beauty, fashion buys increase
• Alshaya Group’s online sales up 35%
• Survey shows drop-off in mall visits

Online shopping in the UAE is accelerating sharply as the Iran conflict keeps consumers away from malls and public spaces, according to the latest research.

Data from Redseer Consulting shows food and beverage delivery has increased 18 percent since the onset of the Iranian attacks. 

Beauty and personal care is up 15 percent, fashion up 14 percent and long-shelf grocery (food and household products that can be stored for extended periods without spoiling) 11 percent.

“These are material shifts,” said Sandeep Ganediwalla, partner for Middle East and Africa at digital consultancy Redseer.

The move echoes the surge seen during the Covid pandemic lockdowns, when online retail jumped from AED13 billion ($3.5 billion) in 2019 to AED22 billion in 2020, as per the data.

Alshaya Group, one of the Gulf’s largest franchise operators, has seen online sales increase by as much as 35 percent, according to CEO John Hadden.

The group manages more than 70 international brands across over 4,000 stores in about 18 countries, spanning names such as Starbucks, H&M, American Eagle Outfitters, The Cheesecake Factory, The Body Shop and Victoria’s Secret.

“The delivery side has been a welcome bit of good news with everything else that’s going on,” he said.

Kim Thompson, owner and director of culture and brand at RAW Coffee Company, said in-cafe sales were down 45 percent during the first 16 days of Ramadan compared to the corresponding period in 2025, while online sales were up 10 percent.

“Our online sales are strong, with more customers buying bags of coffee for home, which tells us people are still looking for small rituals of normality,” she told AGBI.

By the end of 2025, UAE online retail was worth AED57 billion, with penetration exceeding 17 percent of total retail, far above the mid-single-digit levels seen during Covid, according to Redseer.

“The base is much higher this time, and the behaviour change is being driven by security concerns rather than mobility restrictions,” said Ganediwalla.

Further reading:

• Primark expansion pushes ahead with Dubai Mall opening
• Retailers steel themselves for supply upsets over Iran
• Luxury goods threatened by tourists avoiding Iran conflict

More striking is the rise of quick commerce – ultra-fast delivery, typically within 15 minutes – which barely existed at scale during the pandemic.

Fifty-five percent of UAE residents reported increased use of quick commerce for both fresh and long-shelf groceries since the conflict began, according to the Redseer survey of 300 consumers.

The shift appears to be driven less by convenience than by caution. Three-quarters (75 percent) of respondents said their level of concern about the conflict was seven or higher on a 10-point scale, while nearly half (46 percent) reported visiting malls and public spaces less frequently.

“When physical footfall carries perceived risk, rapid delivery becomes a rational substitute,” Ganediwalla said.