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Deloitte has released its latest Digital Consumer Trends 2025 report, providing key insights into how consumers in the UAE and Saudi Arabia (KSA) are engaging with digital technology, media, and connectivity. The study, which surveyed 2,000 consumers aged 18-50 across both markets, highlights the rapid adoption of generative AI, the continued dominance of smartphones, the growing appeal of connected devices, and the shift towards social commerce.
The findings reveal a significant increase in AI usage, with 58% of respondents having used generative AI tools such as ChatGPT or Google Gemini, markedly higher than in the UK or European markets. The report also notes that 73% of consumers in KSA and the UAE have made a purchase through social media in the past year, signaling the growing influence of influencer-driven shopping experiences.
Generative AI becomes mainstream, but awareness gaps remain.
Consumers in KSA and the UAE are embracing AI-powered tools at an accelerated pace. While 55% of generative AI users engage with these tools weekly or daily, driven by personal, educational and professional applications. 20% of respondents are still unfamiliar with AI technology. The study finds that data privacy concerns remain a key barrier, for infrequent users in particular, with one in four citing privacy as their top concern.
Smartphones remain dominant, but smart home adoption lags.
The smartphone continues to be the primary digital device in the region, with 96% of consumers using it daily. Meanwhile, 89% of consumers in the UAE and KSA plan to purchase a new connected device in the next 12 months, with smartphones, smartwatches, and laptops ranking as the most desired categories. Meanwhile, smart home device adoption is still emerging, trailing behind Western markets, though interest in connected living solutions is steadily rising.
Social media is the go-to for news and shopping.
News consumption habits have changed significantly, with social media surpassing traditional news outlets as the go-to source for current events. While 56% of consumers rely on social media for news, only 30% watch television news, and 22% visit news websites. The report also highlights growing concerns about online misinformation, with 48% of UAE consumers stating they encounter false information more frequently than a year ago. Social media’s influence on consumer behavior has reached unprecedented levels, with 73% of respondents reporting at least one transaction through social platforms in the past year. Social commerce is gaining traction as a preferred method of online shopping, boosted by influencer recommendations and affiliate links.
Streaming and digital subscriptions face pricing pressure.
The report finds that while over half of consumers in KSA and the UAE subscribed to a video streaming service in the past year, the rising cost of subscriptions is leading to cancellations. 21% of respondents cited lack of use, and 20% cited cost as reasons for unsubscribing. Additionally, 47% of consumers have been affected by streaming platforms cracking down on account sharing.
Emmanuel Durou, Technology, Media & Telecommunications Leader at Deloitte Middle East, said: “The UAE and Saudi Arabia are at the forefront of digital transformation, with consumers embracing AI, mobile-first lifestyles, and social commerce at an impressive rate. This is evidenced by the remarkable adoption rates of Gen AI and connected devices in the UAE and Saudi Arabia. These trends speak not only to the region’s tech-savvy population but also to the significant investments in infrastructure and digital transformation here.
“This shift presents opportunities for businesses to rethink engagement strategies, particularly as AI continues to reshape how consumers search, shop, and interact online. It provides a clear roadmap for companies looking to tap into these exciting markets. However, as reliance on digital platforms grows, so do concerns around data privacy and misinformation. Organizations must strike a balance between innovation and trust to meet the evolving expectations of today’s digital consumer.”
The Digital Consumer Trends 2025 report highlights the fast-evolving tech, media, and telecom landscape in the Middle East. As generative AI adoption grows, social commerce expands, and digital content consumption shifts, businesses must adapt to these trends to remain competitive. For detailed insights and key takeaways, access the full report here
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