UAE shoppers rely more on discounts, AI, price comparisons this holiday season

Dubai: Holiday shopping in the UAE is becoming less impulsive and far more calculated. A new snapshot from Mastercard shows shoppers are planning ahead, watching prices closely and using technology to make sure their money goes further during the festive season.

The Mastercard Consumer Shopper Snapshot 2025, based on a survey of more than 4,000 adults across four markets, including over 1,000 respondents in the UAE, points to a clear shift in mindset. Gift-buying is no longer just about generosity. It’s about control, value and reducing financial stress.

Eight in ten UAE consumers say value for money is their top priority when choosing gifts. Rising living costs are shaping behaviour. About 76% say shopping has become more stressful as prices climb, pushing many to plan earlier and budget more carefully.

Shoppers are doing their homework before spending. Around 89% read reviews regularly, while 88% compare prices across retailers before buying. Many now start their holiday shopping months in advance, spreading costs and avoiding last-minute spending spikes that strain monthly budgets.

Sales events still play a central role.

Personalised offers matter too. About 82% say targeted discount codes influence their decisions, showing how price incentives can unlock spending even among cautious shoppers.

Holiday shopping is no longer tied to a single platform. About 90% of UAE consumers still shop in physical stores, making bricks-and-mortar retail the most-used channel. Online marketplaces follow closely, with 87% buying gifts through e-commerce platforms.

Resale and thrift shopping are also becoming mainstream. Roughly 71% of respondents say they thrift-shop either online or in-store. Among millennials, that figure rises to 80. For many households, resale offers a way to save money while still buying branded or unique items.

Social commerce continues to grow. Around 63% say they trust it more than they used to. Nearly half watch YouTube or social media reviews when researching gifts, and 51% now trust influencer recommendations more than advice from friends. For shoppers, this blend of content and commerce has become part of the price-checking process.

Artificial intelligence is quickly becoming a budgeting tool, not just a novelty. About 61% of UAE consumers already use AI to help with holiday purchases.

Younger shoppers see it as a way to save time and reduce stress.

Trust in the technology is rising. Around 51% say they trust AI recommendations more than their own judgment about what others might like.

Looking ahead, shoppers want AI to do even more heavy lifting. Half want tools that summarise thousands of reviews instantly. Nearly as many want estimates on how long products will last. About 48% want alerts when spending goes over budget, a figure that jumps to 71% among older shoppers.

Despite tighter control, the mood around holiday shopping remains positive. About 64% say they feel excited, while 35% associate the season with connection. Many also admit to spending on themselves. Around 65% say they buy personal treats while shopping for others.

Popular gift categories reflect small indulgences rather than big-ticket splurges. Specialty foods lead at 44%, followed by fashion accessories at 40% and beauty products at 37%.

The takeaway for households is clear. Holiday spending in the UAE is becoming smarter, slower and more planned. Shoppers are using sales calendars, resale platforms and AI tools to protect their budgets while still enjoying the season. For many, the goal is simple: meaningful gifts without a January financial hangover.