The online food delivery market in the UAE is on track to reach a revenue of $67.12 million by 2024, with a projected growth rate of 5.55 per cent annually, and a market volume of $87.92 million by 2029. This growth is driven by a growing consumer demand for convenience in the Middle East and North Africa (Mena) region, with a 10 per cent increase in delivery orders in the first quarter of 2024. Saudi Arabia is also experiencing a surge in meal delivery, with an expected 19.5 million users by 2029.
In the UAE, restaurants are seeing a significant increase in delivery orders, with a median of 228,740 orders per year and Dh32 million in sales per restaurant. Fast-food chains specializing in delivery are receiving over 600,000 orders annually, generating Dh126 million in sales. The dominance of mobile technology in the region is evident, with over 70 per cent of orders being placed through smartphones. Promotions and loyalty programs are key in attracting customers, with over half of users using coupons and promo codes, and a quarter benefiting from cashback rewards.
Seasonal trends in delivery orders show peaks during March/April and September/October, with slower months in January and February. Cuisine-specific trends reveal that Arabic cuisine sees a surge in the mornings, while Indian and Italian restaurants experience high delivery demand during dinner hours. International chains peak during dinner hours as well, with popular items like shawarma and kebabs. Fast food remains a popular choice for delivery, with 89 per cent of orders being placed for fast food items.
The future of the Mena food delivery market looks promising, with urbanization, smartphone adoption, and convenience-driven dining experiences contributing to its rapid growth. Restaurants and delivery platforms are expected to continue leveraging data and technology to provide personalized experiences and cater to evolving customer preferences. Mobile ordering, attractive promotions, and strategic marketing efforts are expected to fuel further growth in the market. The study highlights the importance of staying up-to-date with trends and utilizing technology to capitalize on the booming food delivery market in the Mena region.
