Consumers in the Gulf are adopting digital technologies at a faster pace than many global markets, according to Deloitte’s latest Digital Consumer Trends 2025 report. The survey of 2,000 people in the UAE and Saudi Arabia found rising use of generative AI, widespread reliance on smartphones, and rapid growth in social commerce.
The study reveals that 58% of respondents have already used generative AI tools such as ChatGPT or Google Gemini, a figure far higher than that reported in the UK and Europe. Of these, more than half engage with AI-powered tools on a weekly or daily basis, employing them for personal, educational, and professional tasks.
However, adoption is not without barriers. Roughly one in five respondents said they were unfamiliar with the technology, while a quarter of those hesitant to use AI cited data privacy concerns as their main obstacle.
Smartphones central, smart homes lagging
The research confirms the smartphone’s role as the dominant digital device in the Gulf. Ninety-six percent of consumers use their phones daily, while nearly nine in ten plan to buy a new connected device within the next year. Smartphones, smartwatches, and laptops are at the top of the wish list.
Smart home technologies, by contrast, remain less widespread compared with Western markets. Despite slower adoption, interest in connected living is building, pointing to future growth.
Social media overtakes news outlets
The report highlights a transformation in news consumption. Fifty-six percent of Gulf consumers rely on social media as their primary news source, surpassing traditional TV news (30%) and news websites (22%).
But this trend comes with risks. Nearly half of UAE respondents reported encountering false or misleading information online more frequently than a year ago.
Social media’s influence also extends to commerce. Seventy-three percent of consumers in the UAE and Saudi Arabia made at least one purchase through social platforms in the past year. Influencer recommendations and affiliate links are driving much of this activity, making social commerce a growing alternative to conventional e-commerce.
Subscriptions under pressure
Streaming platforms remain popular, with more than half of consumers in both countries subscribing to video-on-demand services in the past year. Yet rising subscription costs and limited usage are prompting cancellations. Deloitte found that 21% of subscribers cancelled for lack of use and 20% due to cost.
Nearly half of consumers also reported being affected by crackdowns on account sharing, a move that has forced households to reconsider the value of streaming packages.
A region leading digital change
Commenting on the findings, 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 remarkable rates.
“These trends highlight not only a tech-savvy population but also significant investments in infrastructure and digital transformation,” he said. “As digital adoption deepens, businesses must balance innovation with trust, addressing privacy and misinformation concerns to meet consumer expectations.”
The report underscores the Gulf’s role as a global leader in digital consumer behaviour, where generative AI, social media-driven commerce, and mobile connectivity are setting new standards for the future.
