Due to a predicted increase in consumer spending and travel, local equities markets in the United Arab Emirates are witnessing a well-known seasonal tendency as they get ready for the Eid holidays: a change in investor concentration towards food, retail, and hotel firms.
This year, retail sales in the United Arab Emirates are expected to top $10 billion, underscoring the festive season’s economic importance. According to food and beverage companies, especially Agthia Group, the demand for commodities like dates, wheat, and bottled water, essential products during Ramadan and Eid celebrations, is already rising. In a recent quarter, Agthia, which is listed on the ADX, reported an 8.1% year-over-year rise in revenue, which was mainly driven by robust seasonal sales.
The steady profit rhythm brought on by Eid-related spending has made investors more sensitive, according to Josh Gilbert, eToro’s market analyst. “Ahead of the holiday, we usually see a spike in food and retail performance, which frequently manifests in market movements.”
Increased foot traffic, gift purchases, and marketing initiatives have helped retailers like Union Coop (DFM-listed) and Lulu Group (ADX-listed). Since its debut in 2022, Union Coop has consistently seen growth fuelled by the holidays, and Lulu Group has capitalised on the festive spirit with shop expansions and focused marketing.
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