With Eid holidays around the corner, the flurry of activity at retail stores and markets is reaching new highs. And it’s not just footfalls that support this sentiment; local equity markets, too, are experiencing a familiar seasonal trend. Investors are betting big on food, retail, and hospitality stocks in anticipation that consumer spending and tourism will ride the festive wave
Retail stocks rally
There is increased demand for staples such as dates, flour, and bottled water, key items used during Ramadan and Eid celebrations. Food and beverage producers, Agthia Group, can bear testament to that, as the ADX-listed company reported an 8.1% (YoY) revenue increase in the last quarter, largely fueled by strong seasonal sales.
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, a note by trading platform eToro stated.
Hotel & Leisure shares on a tear
The hospitality sector is not far behind, capitalizing on the Eid travel boom. Abu Dhabi National Hotels (ADX-listed) and other listed hotel operators reported significant increases in occupancy. Occupancy in some Emirates peaked as much as 95% during Eid al-Fitr break in April. “Tourism now contributes nearly 9% to the UAE’s GDP, and festive periods like Eid deliver a clear economic and market impact,” Josh Gilbert, Market Analyst at eToro, noted.
So it’s not just these consumer-focused companies per se that are seeing increased volumes, but even their stocks are witnessing increased trading volumes and positive price action. While overall liquidity may dip during the holiday week, the upbeat momentum can still act as a catalyst for UAE equities.
