Gen Z In UAE Prioritises Experiences Over Personal Spending, Study Finds

(MENAFN- Khaleej Times) Young consumers in the UAE are increasingly choosing shared experiences and social connections over personal purchases, underscoring a shift in spending habits that is boosting demand for events, dining and gifting despite economic pressures.

A new study by entertainment platform Platinumlist and gifting company Udora found that 70 per cent of UAE-based Gen Z consumers prioritise spending on experiences that strengthen relationships, while many are willing to cut back on personal purchases before reducing social activities.

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The findings highlight how the UAE's youngest adult consumers are reshaping consumer behaviour in one of the world's most digitally connected markets. Although Gen Z is often viewed as a generation that lives online, the survey suggests digital platforms are increasingly serving as tools to facilitate face-to-face interaction rather than replace it.

The study was based on a survey of UAE residents aged 18 to 30 conducted in September 2026 and supported by transaction data from both companies covering the first half of the year.

More than 90 per cent of respondents said their digital lives motivate them to seek more opportunities to meet people in person, while 79 per cent regularly feel the need to put their phones away. Only 10 per cent said digital communication could replace real-life interaction.

“High digital penetration is not a threat to physical retail and live venues. In fact, it generates demand for them,” said Cosmin Ivan, chief executive of Platinumlist.“Technology is very good at making connection frictionless, but that does not make digital contact a substitute for being together.”

The survey found that social spending has become a meaningful part of monthly budgets. Around 68 per cent of respondents said they allocate at least Dh500 a month to activities such as going out, attending events and buying gifts, while nearly one in five spends more than Dh2,000 monthly.

Spending is also highly regular. More than seven in 10 respondents said they spend money on meeting friends, family members or partners at least once a week, suggesting that social connection is becoming a recurring consumer priority rather than an occasional luxury.

The desire to maintain relationships is also influencing shopping patterns. Seventy per cent of respondents said they had bought a gift specifically to reconnect with someone, while six in 10 reported sending a gift or booking a small experience without any special occasion.

“In a market as digital as the UAE, people are constantly connected, and that makes personal gestures even more valuable,” said Slava Bogdan, founder and chief executive of Udora.“A small gift is becoming a simple way to reconnect, show support or bring something personal into a digital relationship.”

When it comes to paid experiences, social motivations dominate spending decisions. The survey showed that creating memories with family or partners, spending time with friends and having something to look forward to were among the strongest reasons for purchasing event tickets.

Dining experiences and concerts emerged as the most popular ways to reconnect with people, with 60 per cent of respondents choosing each option. Platinumlist data reflects the trend, with concert ticket sales rising 75 per cent year-on-year in the first half of 2026, while Desi events grew 69 per cent and indoor attractions recorded a 94 per cent increase.

Notably, Gen Z consumers appear reluctant to sacrifice social spending during tighter financial periods. About 42 per cent said they would protect spending on concerts and live entertainment, while 32 per cent would prioritise dining out. By comparison, only 15 per cent would protect spending on fashion and 16 per cent on digital subscriptions.

The trend could have significant implications for businesses targeting younger consumers. With nearly half of the UAE's population under the age of 35, spending driven by social connection rather than material ownership is becoming an increasingly important growth driver for sectors ranging from entertainment and hospitality to gifting and experiential retail.

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