Small and medium enterprises (SMEs) are the backbone of the UAE’s economic diversification strategy. SMEs make up over 94 per cent of all businesses in the UAE and contribute more than 63 per cent to non-oil GDP. The UAE government’s vision aims to reach one million SMEs by 2031 (+79.5 per cent), supported by $8.7B investments. All amplified by the UAE’s advanced e-commerce ecosystem and mobile dominance, with 65 per cent of shoppers preferring domestic platforms for authenticity, speed, and the emotional value that only SMEs can provide.
Ramadan has always been a season where authenticity and personalisation matter most. That is why gifting choices are increasingly shifting toward local businesses such as independent gift shops, artisans, and handicraft makers who more deeply understand local traditions and religious sentiment.
Seasonal peaks like Ramadan create a powerful economic impact for SMEs, with the most lasting demand window. In the gifting sector, noticeable growth began from the very beginning of February, driven by early corporate orders and preparation, with order numbers increasing by up to 30 per cent, while GMV increased by up to 40 per cent compared to January. By mid-February, the tendency intensified further, with order numbers rising by 173 per cent and GMV increasing by 195 per cent during the first two weeks alone. Over the full Ramadan period, online sales of local brands in the UAE grew by 203.7 per cent, while the number of gift sales rose by 152.8 per cent compared to the same period in 2024.
“Every year in the UAE, Ramadan proves something important: how culture moves the economy. Here, value is not about price cuts, it is about relevance, heritage, and emotional resonance. It is clearly visible how consumer attention is distributed. Local artisans, handmade brands, and culturally rooted businesses are capturing a growing share of market turnover during Ramadan. With powerful government support and rapid digital transformation that simplifies logistics, payments, and access to a wider audience, local entrepreneurs are scaling into mature, sustainable businesses with a strong advantage,” explains Slava Bogdan, CEO and co-founder of Flowwow.
It’s also visible in what consumers choose to buy.
During Ramadan 2025, Flowwow observed a remarkable uptick in the popularity of local and personalised gifts, especially in florists’ original bouquets and premium food categories.
- Flowers: +40 per cent;
- Sweets & Treats: +57 per cent, with handmade Arabic sweets sets (+108.3 per cent), confectionery and pastries (+103.3 per cent) and edible bouquets (+99.1 per cent) are among the top preferences.
These categories carry cultural meaning and can be easily personalised, making them a natural fit for both personal and corporate gifting during the holy month.
For local sellers, the economic effect goes beyond personal and corporate gifting. UAE residents also choose traditional sweets as part of the Ramadan experience. Spending on authentic hampers and food sets is amplified by religious traditions and a growing number of family gatherings, where food boxes capture the spirit of Ramadan and serve as a natural part of the iftar table.
Ramadan’s daily rhythm has a direct impact on overall e-commerce demand. While daytime activity is slowing, the shopping and entertaining peak is moving to post-iftar time. According to YouGov Ramadan study, during the holy month, shopping activity is growing by 46 per cent, while groceries, daily essentials, and gifts are the top priority categories, with 57 per cent and 48 per cent, respectively. In 2025, Admitad experts recorded the same tendency, with +20 per cent GMV growth across the UAE compared to the same period in 2024.
Beyond Ramadan-associated categories, the share of consumer spending was distributed across fashion (22 per cent), electronics (15 per cent), home essentials (14 per cent), car-related items (9 per cent), products for children (6.8 per cent), and beauty (5.7 per cent). Admitad data also shows this shift is reinforced by mobile dominance, with 47 per cent of online orders coming from mobile devices.
In this highly competitive environment, local artisans and small businesses have a structural advantage. They often have a deeper understanding of multicultural preferences, offering unique options that resonate with people’s needs during a period defined by cultural sensitivity and personal connection. To stand out, brands should focus on meaningful creative campaigns and adjust their approach and time of communication with consumers to capture the most demand.
Based on the trajectory observed in 2025 and the early demand signals this year, Flowwow expects at least a 2x overall GMV growth and a 70 per cent growth in demand for curated hampers and food-related items as key categories during the holy month.
As the UAE continues to invest in its SME ecosystem and consumers increasingly seek culturally authentic experiences, it is anticipated that small local businesses will play an even larger role in shaping this Ramadan season.
