Eid Powers UAE Markets at 95% Hotel Occupancy and $10B in Sales

Each year, as the UAE heads into the Eid holidays, a familiar pattern tends to emerge across local equity markets. Investors start turning their attention to food, retail and hospitality stocks, anticipating a seasonal uplift in spending and activity. 

Consumer sentiment typically builds and peaks around Eid, with retail sales in the UAE forecast to hit $10 billion this year. This isn’t just anecdotal, it shows up in the numbers. For instance, Agthia Group, a major player in food and beverages, often sees a spike in demand for staples like dates, flour and bottled water during holy periods in the UAE. In 2023, the company reported a strong Q2 before revenue softened in Q3, largely because the Eid-driven sales bump had passed. That kind of seasonal fluctuation has become a regular feature of Agthia’s earnings rhythm, and investors are increasingly attuned to it.

Retailers also benefit from this surge in pre-Eid shopping, according to Josh Gilbert, Market Analyst at eToro. Union Coop, one of the UAE’s largest grocery chains, consistently reports higher footfall and sales leading into the holiday. Although only listed since 2022, the market’s response to its seasonal performance has already been positive. Lulu Group, which listed on ADX last year, is another name that has leaned into festive demand with targeted promotions and store expansions. For investors, this seasonality has helped support upward momentum in the sector, particularly when paired with broader macro stability.

Hospitality stocks tell a similar story. Eid is a high season for travel and leisure, and hotel operators tend to post stronger numbers off the back of it. Abu Dhabi National Hotels (ADNH) typically sees occupancy levels rise across its portfolio, and this year was no exception – hotel occupancy in some Emirates peaked at over 95% during Eid. These demand spikes often translate into improved RevPAR and profit margins, which can support share price moves around this period.

Strong macroeconomic conditions in the UAE have helped support seasonal equity trends around Eid. Elevated oil prices have boosted government spending and consumer confidence, while the post-COVID rebound in tourism and the job market has further fuelled festive demand. With tourism now contributing close to 9% of GDP, the influx of visitors during Eid has directly lifted retail sales and hotel occupancy. Household spending has remained resilient, especially during key cultural moments like Eid. For investors, this macro backdrop reinforces the case for stronger earnings across consumer-facing sectors during the festive period, which can often correlate to strong share price performance.

As the Eid holidays approach each year, UAE equity markets tend to reflect a predictable seasonal shift. Investors often increase their focus on consumer-facing sectors in anticipation of festive surges in spending and travel. Trading activity gravitates toward food, retail, and hospitality shares that stand to benefit most from holiday demand. Macro drivers take a backseat during this period, as sector-specific trends dominate investor attention.

In the weeks around Eid, consumption of food and consumer goods spikes as families prepare celebrations. This seasonal lift directly benefits UAE-listed food producers and retailers. Agthia Group – an ADX-listed food & beverage firm – often experiences strong demand for staples like flour, bottled water, and especially dates, a traditional delicacy. Notably, Agthia’s revenues jumped 8.1% year-on-year in a recent quarter, driven by robust sales of dates, flour and other core foods.

On the retail side, chains such as Union Coop (DFM) enjoy higher footfall and sales fueled by holiday promotions and gift-buying. Retailers typically launch Eid campaigns with steep discounts, and malls see some of their highest footfall and sales volumes of the year during the festive period economymiddleeast.com. The anticipation of strong Eid sales often leads to upward moves in these stocks and heavier trading volumes in the run-up to the holiday, as investors position for a potential earnings boost in the consumer sector.

Tourism Uptick Lifts Hospitality Stocks

Eid is also a peak season for travel and tourism in the Gulf. Many families across the region take advantage of the days off for vacations or “staycations,” resulting in a sharp uptick in UAE hotel occupancy and leisure spending. During Eid al-Fitr 2025, for example, hotel occupancy in some emirates nearly hit full capacity – Ajman peaked at 95.8% on the holiday night str.com. Intra-GCC tourism typically soars over Eid, bolstering hospitality and entertainment businesses; destinations like the UAE attract regional tourists and see a surge that boosts hotel revenues, retail sales and visitor spending economymiddleeast.com. This trend has direct implications for Abu Dhabi National Hotels (ADX: ADNH) and other listed hospitality operators, which tend to report higher occupancies and RevPAR during Eid.

Hospitality and even restaurant stocks often trade actively around this season, as investors anticipate that festive tourism flows and dining-out plans will translate into improved quarterly results.

Importantly, these seasonal consumption and travel patterns don’t go unnoticed in the markets. Every Eid, market participants re-calibrate portfolios toward the beneficiaries of holiday spending, and the effect can be seen in short-term equity performance. For instance, consumer-focused stocks have at times led the market higher just before an Eid break – on one pre-Eid trading session, Dubai’s consumer staples sector index jumped over 2% in a single day zawya.com. While overall liquidity can taper off during the holiday week, investor interest in names like Agthia, Union Coop and ADNH tends to spike ahead of Eid as traders seek to capitalize on seasonal demand drivers. In summary, the Eid period injects a notable, if temporary, catalyst into UAE equities, with food, retail, and hospitality shares enjoying a seasonal tailwind in both sentiment and trading activity.