UAE Investors Flock To Food, Retail And Hospitality Stocks Ahead Of Holiday Surge

As the UAE prepares for the Eid holidays, local equity markets are experiencing a familiar seasonal trend: a shift in investor focus toward food, retail, and hospitality stocks, driven by an anticipated surge in consumer spending and tourism.

Retail sales in the UAE are forecast to reach $10 billion this year, highlighting the economic significance of the festive period. Food and beverage producers, particularly Agthia Group, are already witnessing increased demand for staples such as dates, flour, and bottled water - key items during Ramadan and Eid celebrations. Agthia, listed on the ADX, reported an 8.1 per cent year-on-year revenue increase in a recent quarter, largely fueled by strong seasonal sales.

“Investors have become more attuned to the predictable earnings rhythm driven by Eid-related consumption,” said Josh Gilbert, market analyst at eToro.“We typically see a spike in food and retail performance leading into the holiday, and this often shows up in market movements.”

Retailers such as Union Coop (DFM-listed) and Lulu Group (ADX-listed) have benefited from increased foot traffic, gift-buying, and promotional campaigns. Union Coop has seen consistent holiday-driven growth since its listing in 2022, while Lulu Group has leaned into the festive momentum with store expansions and targeted promotions.

The hospitality sector is also capitalising on the Eid travel boom. ADX-listed Abu Dhabi National Hotels and other listed hotel operators reported significant increases in occupancy, with some emirates peaking at over 95 per cent during Eid Al Fitr earlier this year. This surge is driven in part by intra-GCC tourism and a rise in domestic“staycations,” bolstering hotel revenues, RevPAR, and margins.

“The UAE's strong macroeconomic conditions, supported by elevated oil prices and a post-COVID tourism rebound, are reinforcing these seasonal trends,” added Gilbert.“Tourism now contributes nearly 9 per cent to the UAE's GDP, and festive periods like Eid deliver a clear economic and market impact.”

Equity traders have taken note. In the run-up to Eid, shares of consumer-focused companies often see increased trading volumes and positive price action. In one pre-Eid trading session, Dubai's consumer staples index jumped more than 2 per cent in a single day, underscoring how investors reposition their portfolios toward holiday beneficiaries.

While overall liquidity may dip during the holiday week, the run-up to Eid continues to offer a meaningful - if temporary - catalyst for UAE equities. As the festive period kicks off, companies in the food, retail, and hospitality sectors are once again in the spotlight, supported by strong consumer sentiment and investor interest.

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