During Eid Al Adha, shopping malls are crowded, restaurants stay open longer, airlines increase fares, hotels offer staycation deals, and retailers rely on discounts. Consumers respond by spending more. The Gulf’s Eid economy still looks strong. But businesses say consumers are getting harder to win.

Now, that pattern still exists, but spending habits have shifted. People are now more intentional, expecting better value, convenience, personalization, and flexibility.

For businesses, that shift is forcing a broader rethink of where profit actually comes from.

Retailers are updating promotions as things change. Restaurants are changing their delivery plans to match how people behave in the heat. Hotels are turning into lifestyle destinations, not just places to stay. Small businesses are working to protect their slim profits while staying competitive.

And this is not only happening in the UAE. Saudi Arabia is seeing the same shift toward experience-led, value-defined spending during seasonal peaks.

DRIVING THE ECONOMY

In the UAE, events like Eid, summer, and year-end shopping now drive the economy. Hospitality, aviation, retail, and entertainment all work together during these periods.

“Eid and summer are no longer only retail peaks; they’ve become important economic moments for the whole city,” says Mohammed Feras Arayqat, Acting VP – Retail Calendar & Promotions at Dubai Department of Economy and Tourism. “The opportunity is not just higher footfall, but capturing spend across shopping, dining, hotels, entertainment, mobility, delivery, and digital payments in a single journey.”

Plugging into citywide programming is the differentiator, adds Arayqat.  “When cafés, salons, and independents join dining programs, mall activations, or festival calendars, they gain visibility without giving away margin.”

A similar city-to-destination approach is taking hold in Saudi Arabia. “Eid and summer have evolved into important economic periods that drive activity across retail, dining, entertainment, and domestic tourism,” says Abdullah Al‑Tamimi, CEO of Hamat. 

“Saudi Arabia welcomed over 100 million tourists ahead of its Vision 2030 target and is now aiming for 150 million annual visitors by 2030 — retail destinations are an increasingly important part of that ecosystem.”

CHANGING WHAT LUXURY MEANS

In the hospitality sector, consumers still want high-quality experiences, but they are more careful about what they value.

This is changing the meaning of luxury.

“Seasonal moments like Eid and the summer period have always held significance for the UAE hospitality sector, but their commercial weight is genuinely deepening,” says Alison Grinnell, Group Chief Operating Officer and CEO of Marjan Hospitality.

“Guests continue to prioritize meaningful experiences but they are planning with greater intention,” she says.

That distinction matters..

Luxury is no longer defined by price point or exclusivity alone, Grinnell says. “It’s about relevance, personalization, and the feeling that a stay has been curated with care.”

Adding that guests still seek exceptional dining, wellness, and leisure, but “they want those experiences to feel seamless and meaningful rather than transactional,”

This change is also shaping how hotels compete during busy times.

Instead of focusing only on accommodation, hotel operators are now building integrated offerings that include dining, wellness, entertainment, and cultural events. This is especially true as destinations in the UAE compete more actively for both residents and tourists.

Arayqat frames it as Dubai’s advantage: “The city’s infrastructure – destinations, events, hotels, restaurants, and digital platforms — lets retail moments become full consumer experiences.”

Al‑Tamimi says the same consumer lens is redefining mall roles in Saudi Arabia: “The role of malls in Saudi Arabia has fundamentally changed. They are no longer purely shopping destinations. They have become lifestyle and social hubs. This is being driven largely by Saudi Arabia’s young population, where nearly 63% of citizens are under the age of 30.”

“Occasions like Eid Al Adha have evolved well beyond room occupancy into fully integrated lifestyle moments,” Grinnell says.

SELECTIVE SPENDING

If businesses in the UAE agree on one thing, it is that consumers are much more focused on value than they were a few years ago.

“People compare offers instantly, book through apps, pay digitally, use loyalty platforms and expect convenience. This has concentrated spending around key retail moments, especially long weekends, paydays and public holidays,” Arayqat says.

For businesses, the challenge is no longer just creating a brief surge in demand. Now, they need to find ways to keep consumers engaged beyond a single purchase.

Loyalty programs, app rewards, and bundled offers are becoming more important. These strategies encourage customers to come back, spend in different ways, and stay interested even after the Eid rush is over.

“A straight percentage discount no longer moves the needle on its own,” says Shafi Alam, Senior Director and Head of Direct to Consumer and Corporate Marketing Division at Samsung Gulf Electronics.

“What people are responding to today is a holistic value proposition. They want to feel they’re getting more from their investment, not simply paying less.”

Echoing Alam, “Value is no longer defined only by discounts — it’s defined by the overall experience,” Al‑Tamimi says. 

Adding: “Consumer behavior in Saudi Arabia is becoming increasingly experience-driven, particularly among younger demographics…As a result, destination-led marketing is becoming significantly more effective than traditional discount-led retail promotions.”

Ahmed Sameh, Chief Marketing Officer at Fortis, says businesses across retail and food services are already seeing shifts in consumer behavior during this year’s Eid period.

“Retail sales are up as much as 20% from last month, thanks to pre-Eid al-Adha shopping for clothes, gifts, and celebration essentials. Beauty and salon businesses are also seeing steady growth as people prepare for the holiday,” Sameh says.

He adds: “On the other hand, food and beverage sales have dropped by up to 28%, which is normal in the week before Eid. With the summer heat and travel season, families are spending less at cafés and restaurants and focusing more on essential holiday needs.”

That divergence reveals an important trend in seasonal spending patterns.

BUSINESSES ARE BECOMING STRATEGIC

For years, seasonal spending in the Gulf was mostly driven by big discounts and promotions. That approach still matters, but businesses are now more careful about how they use it.

Many businesses are now working harder to protect their profits rather than sacrificing profitability to sell more.

According to Fortis, merchants are now divided into two main groups during peak seasons.

Some businesses are deliberately avoiding major discounts altogether, particularly when demand is already expected to rise naturally during Eid.

“As one kunafah shop owner put it, ‘if demand is already naturally higher during Eid, there is no reason to reduce profit margins,’” Sameh says.

Instead, businesses are focusing on running more efficiently by stocking up earlier, hiring more delivery drivers, speeding up service, and using smaller, targeted promotions instead of big price cuts.

Others are becoming more strategic about the types of promotions they offer. Bundles, loyalty rewards, buy-one-get-one deals, and in-house giveaways are replacing broad discounts because they give customers value without hurting profits as much.

Samsung is seeing a similar shift in how consumers respond to seasonal campaigns.

According to Alam, bundled offers, trade-in programs, reward multipliers, and flexible installment plans are increasingly outperforming traditional discount-led promotions because consumers are evaluating the full package rather than only the headline price.

“Flexible installment plans are no longer a last resort but a preferred mode of purchase for a growing segment of customers,” Alam says.

“One coffee shop found that bundles and BOGO deals worked better than regular discounts because in-house giveaways kept costs lower,” Sameh says.

Businesses want to boost demand without making customers always expect big discounts. 

Al‑Tamimi says the playbook is changing: “Instead of relying purely on price-led promotions, operators are combining offers with entertainment, dining, loyalty rewards and experiential activations that encourage longer dwell time and repeat visits.”

FOCUS ON DELIVERY SERVICES 

The UAE’s climate has always influenced how people shop during the season. But businesses say this summer, with Eid and peak travel overlapping, is speeding up larger changes in convenience and online shopping.

“Almost every merchant pointed out that delivery will be more popular than in-store visits because of the summer weather,” Sameh says.

This change is making even dine-in restaurants focus more on delivery services.

Businesses that stay open longer, build more delivery partnerships, and adjust staff for busy evenings are doing better than those that still depend mostly on in-person visits.

When people spend money is also becoming harder to predict.

“Merchants say the biggest jump in activity starts on the second day of Eid, not the first,” Sameh says. “Most people spend the first day at home with family, and shopping picks up after the initial celebrations.”

To succeed during busy seasons, businesses need to know not just what offers to have, but also exactly when, where, and how people are most likely to spend.

This means businesses need to use data better, be more flexible, and react faster than before.

COMPETITION FOR ATTENTION

Increasingly, businesses are competing for attention inside a crowded ecosystem of experiences, entertainment, travel, dining, retail, and digital convenience. That dynamic is particularly visible across hospitality and tourism.

“The convergence of hospitality with the broader lifestyle, retail and entertainment economy has been one of the most significant structural shifts of the past few years,” Grinnell says.

“Seasonal demand is now shaped as much by destination-wide programming as it is by traditional travel drivers,” she says.

This means hotels can’t work on their own anymore and need to connect with the wider consumer world around them.

Partnerships among tourism, retail, events, wellness, and entertainment are now key to attracting visitors and retaining customers.

“When an entire destination fires on all cylinders simultaneously, the benefit to every operator — and to the guest experience — is exponential,” Grinnell says.

Seasonal times like Eid and Dubai Summer Surprises are no longer just separate tourism campaigns. They are now linked to economic cycles that boost spending in many industries at once.

During Eid in Dubai, the city offers retail promotions, staycation deals, Dubai Restaurant Week for food lovers, the Dubai Esports and Games Festival for gaming fans, and a wide range of entertainment and family activities. Major concerts, like Majid Al Muhandis during the Eid holiday, are also part of the celebrations.

For this reason, Arayqat says seasonal campaigns now need to do more than simply push discounts.

“A discount on its own is no longer enough,” he says. “The offer has to feel useful, timely and rewarding, and it has to speak to different types of consumers, not only shoppers.”

That may ultimately be the biggest shift reshaping the Gulf’s Eid economy. Businesses are no longer competing simply to drive spending. Increasingly, they are competing to predict exactly where that spending goes next.