A significant 30% increase in mobile food delivery orders observed in the UAE and Saudi Arabia during the first half of the year
In a significant shift in consumer behaviour, the online meal delivery industry in the United Arab Emirates (UAE) and Saudi Arabia is experiencing rapid growth, driven by a range of factors including consumer demand for convenience and speed, the increasing popularity of food aggregators, and the digital transformation of the food delivery market.
According to recent reports, Talabat, a leading food aggregator, has recorded a 30% year-over-year increase in Gross Merchandise Value (GMV) in Q1 2025, suggesting a notable rise in order volume for the first half of the year. This growth is expected to continue, with forecasts predicting that the share of mobile-based orders will exceed 80% in both the UAE and Saudi Arabia by the end of 2025.
Food aggregators like HungerStation, Talabat, and Deliveroo dominate the mobile order channel in both markets, processing approximately 75% of all mobile orders. The increasing drive towards process automation in the restaurant industry is also contributing to this shift towards mobile-based orders.
The UAE's online meal delivery industry is projected to expand at a Compound Annual Growth Rate (CAGR) of 10.2% through 2033, while in Saudi Arabia, the growth rate is even higher, with a CAGR of 15.4% through 2030. This growth is attributed to factors such as urbanization, advanced digital infrastructure, widespread internet access, smartphone usage, and a growing middle class with increasing disposable income, particularly in Saudi Arabia.
Syrve MENA, a leading restaurant software provider, has reported a substantial shift in consumer behaviour in both countries during the first half of 2025. More than 70% of all food delivery transactions in the region are made through mobile phones, and revenue, adjusted EBITDA, and adjusted net income all grew in H1 2025.
The time slot from 8:00 PM to 11:00 PM consistently yields the highest volume of mobile delivery orders across most restaurant categories in the UAE and Saudi Arabia. For fast food, Italian, Indian, and international restaurant chains, this evening window is the most popular. Interestingly, Arabic food exhibits a distinct trend, with traditional breakfast items driving the highest delivery activity between 10:00 AM and 12:00 PM.
The Saudi Arabian market, which is significantly larger, is projected to grow at a 15.4% CAGR through 2030. Another seasonal surge in delivery activity is expected between June and September in both countries.
The dominance of food aggregators is a key factor in this growth, as they contribute to the shift towards mobile-based orders in both markets. Consumers are increasingly demanding digital convenience, and this trend is driving the growth of mobile-based orders in both the UAE and Saudi Arabia.
In addition, the emergence of ghost kitchens and subscription meal services offers affordable, health-conscious ready-to-eat meals to consumers without physical storefronts. This, along with strong government support and investment in digital payments, smart city initiatives, and encouragement of food entrepreneurship in Saudi Arabia and the UAE, further fuels the rapid expansion of the online meal delivery markets in both countries.
The dominance of technology in the food industry, particularly through food aggregators like Talabat and Deliveroo, is playing a significant role in the transformation of lifestyle choices in the UAE and Saudi Arabia. The increasing reliance on mobile-based orders, which account for over 70% of all food delivery transactions in the region, is indicative of the growing influence of technology on both markets' financial sectors. The rise in mobile-based orders, driven by factors such as urbanization, digital infrastructure, and smartphone usage, is forecasted to continue, with the UAE's online meal delivery industry expected to expand at a CAGR of 10.2% through 2033.
