Spending in supermarkets and mini-marts increased significantly in the UAE despite the pandemic. Antonie Robertson / The National
Spending in supermarkets and mini-marts increased significantly in the UAE despite the pandemic. Antonie Robertson / The National
Spending in supermarkets and mini-marts increased significantly in the UAE despite the pandemic. Antonie Robertson / The National
Spending in supermarkets and mini-marts increased significantly in the UAE despite the pandemic. Antonie Robertson / The National

Six in 10 UAE consumers prefer in-store grocery purchases


Deepthi Nair
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Six in 10 consumers in the UAE still prefer to buy their groceries in person despite the Covid-19 pandemic, with only two in 10 people opting to buy their food online, according to a new survey.

Other categories in which people prefer in-store purchases over online purchases include home furnishings, clothing, toiletries and cosmetics, according to research company Sunstream Research & Consulting.

This is despite an abundance of e-commerce offerings in the UAE.

"When it comes to a preference for digital purchasing – as opposed to in-store or a mix of online and in-store, books and magazines, electricals and electronics, and sporting equipment garner the greatest proportion of responses," Ibrahim Serafi, business head of Sunstream Research & Consulting, told The National.

"Those aged between 34 to 54 years assert significant inclination towards e-commerce in [the] said categories, with no less than 30 per cent in support of online transactions."

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Although stay-at-home directives and other precautionary measures to curb the spread of the coronavirus spurred a surge in online shopping in the UAE, it appears that customers are reverting to brick-and-mortar shops as restrictions are eased.

There was a surge in internet searches for "groceries" in March and April, according to a Dubai Chamber report in June, citing UAE Google Trends data.

One in two women spend less on toiletries and cosmetics, versus one in three men

Online grocery shopping became the norm for many UAE consumers in March, reaching a peak of 100 during stay-at-home restrictions in April, according to Google Trends data.

Google Trends assigns a search interest value of between zero and 100, with 100 representing peak popularity for the term.

The Sunstream survey, which polled more than 300 UAE residents from July 9 to 27, found that spending in supermarkets and mini-marts increased significantly after the outbreak of Covid-19.

About 40 per cent of respondents spend more in supermarkets now, compared with the same time last year.

However, 73 per cent reported that they had cut back on purchases of clothing and accessories. This was especially true among those aged between 35 and 44 years.

“One in two women spend less on toiletries and cosmetics, versus one in three men. Similarly, a third of women and four in 10 men purchase fewer sporting items now,” Mr Serafi said.

Just under six in 10 respondents said their spending priorities had changed considerably due to the virus, while more than a quarter (28 per cent) reported slight yet notable differences in purchasing and 13 per cent said there was little or no change in their spending patterns.

However, conditions have been unfavourable for about half the survey sample since the coronavirus outbreak began.

Although 33 per cent said they were working normal hours on the same pay, 19 per cent said they were working normal hours but on a reduced salary, 16 per cent said they were no longer employed and 14 per cent said their work hours and pay had been reduced.

However, three in four men and women expect that economic and health conditions will improve in the next 12 months, the survey found.

Amazon is the most popular online shopping platform with more than seven in 10 people saying they used it, the survey revealed.

This was followed by Noon, popular with about half of the survey's respondents, and Instashop and Namshi, which were used by 20 per cent of respondents.

“Demand for quality products takes precedence over price among respondents, in spite of economic pressures and lower spend in retail categories,” Mr Serafi said.

"Almost six in 10 make this claim. That said, 94 per cent [of respondents] state that discounting and promotions are now more important than before."

Compared with a year ago, more people (36 per cent) said they now ordered more frequently from restaurants than those who said they had cut back on orders (30 per cent), the report said.

Zomato (58 per cent) and Talabat (56 per cent) were the most popular platforms, followed by Deliveroo (22 per cent) and Uber Eats (14 per cent).

Ten tax points to be aware of in 2026

1. Domestic VAT refund amendments: request your refund within five years

If a business does not apply for the refund on time, they lose their credit.

2. E-invoicing in the UAE

Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption. 

3. More tax audits

Tax authorities are increasingly using data already available across multiple filings to identify audit risks. 

4. More beneficial VAT and excise tax penalty regime

Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.

5. Greater emphasis on statutory audit

There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.

6. Further transfer pricing enforcement

Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes. 

7. Limited time periods for audits

Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion. 

8. Pillar 2 implementation 

Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.

9. Reduced compliance obligations for imported goods and services

Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations. 

10. Substance and CbC reporting focus

Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity. 

Contributed by Thomas Vanhee and Hend Rashwan, Aurifer

History's medical milestones

1799 - First small pox vaccine administered

1846 - First public demonstration of anaesthesia in surgery

1861 - Louis Pasteur published his germ theory which proved that bacteria caused diseases

1895 - Discovery of x-rays

1923 - Heart valve surgery performed successfully for first time

1928 - Alexander Fleming discovers penicillin

1953 - Structure of DNA discovered

1952 - First organ transplant - a kidney - takes place 

1954 - Clinical trials of birth control pill

1979 - MRI, or magnetic resonance imaging, scanned used to diagnose illness and injury.

1998 - The first adult live-donor liver transplant is carried out